Swift Networks Group (ASX:SW1) has rocketed nearly +160% to 1.6cps after it inked a deal with Opal Healthcare, billed as Australia’s largest aged care player, to provide in-house TV content across the latter’s portfolio.
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Each site will produce a minimum revenue of $80,000, and W1 flagged on Friday that Opal’s got 142 sites in the country (though, not all of them can house 100 people, the number on which the minimum revenue was based).
At any rate, it’s the biggest catalyst the company has seen in recent memory, evidenced by its long-term price chart. Helping matters is that Opal’s on an expansion kick at the moment and has just launched two new developments; this TV deal lasts for 36 months and, presumably, could be extended.
Basically, Swift TV is bringing its own version of Netflix to residents. “Swift and Opal HealthCare will integrate Swift TV with Opal HealthCare’s proprietary management software, bringing personalised content,” the company wrote. Menus and activity schedules will also be broadcast to each resident in their room.
And, of course, residents will also be free to sign up for Swift – suggesting possible further revenues based on sign-up fees. Talk about a captive audience.
“Having Opal HealthCare come on board soon after releasing Swift TV for pre-orders, is a very exciting moment for our team, who have worked tirelessly on creating a product that is set to not only transform the market for in-room entertainment and engagement experiences but also sets our company up for accelerated growth,” CEO Brian Mangano said.
Will Swift really “transform the market for in-room entertainment?” That remains to be seen. At any rate, though, Opal’s clearly a partnership the market’s liking. Liquidity was dramatically higher on Friday.
SW1 last traded at 1.8cps.
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