Swift Networks Group Ltd (ASX: SW1) has secured key contract renewals and network infrastructure upgrades in the resources sector during Q3 FY24, solidifying its position in a growing market.
Swift delivers customer-centric end-to-end solutions by transforming the Television from a passive entertainment device into an interactive experience at the heart of any community.
These renewals, spanning 6 to 12 months, demonstrate continued trust from established clients like Pilbara Minerals, Shell, AngloGold Ashanti, Iluka Resources, Northern Rise, and Genesis Minerals.
Swift Networks will also deliver network expansions and room upgrades by the end of Q4 FY24, catering to the evolving needs of these companies.
“Smarter than Smart TV” Solutions Drive Growth
Swift Networks transforms televisions into interactive hubs within communities.
Their customer-centric approach and “Swift Access” device take entertainment beyond “Smart TVs,” offering curated content specifically tailored for Mining and Aged Care settings.
Solid Financials and Growth Trajectory
While individual contract values remain below $1 million, the aggregate revenue is material for Swift Networks.
The company boasts a strong H1 FY24 performance with $9.5 million in booked revenue, a 125% increase in Group EBITDA compared to the prior period, and a healthy cash position of $2.5 million.
Subscription margins sit at 41%, and Swift Networks is on track for annual revenue of approximately $20 million, with $14 million already secured through subscriptions.
Focus on Long-Term Partnerships and Market Expansion
“We are thrilled to continue and expand our relationships within the Mining and Oil and Gas sector,” said Brian Mangano, CEO of Swift Networks. “Our focus on long-term partnerships fuels subscription revenue growth, and we expect this trend to persist as we acquire new clients.”
Swift Networks is experiencing growth in both Mining and Aged Care markets, with Mining sales steadily climbing to a 7% market share.
The Aged Care sector is experiencing accelerated growth due to new regulations and post-pandemic demand.
The company’s product portfolio has diversified from solely reselling Foxtel to offering a combined Swift/Foxtel package and a standalone “Swift Access” option.
Furthermore, Swift Networks leverages a unique business model, providing a “capital lite” tech opportunity without the heavy upfront costs associated with a traditional startup.
