Ann: Appendix 4C - quarterly, page-4

ZipTel Quarterly Update - Q1 2015
Activity Highlights
ZipT
 Successful completion of phase one of the pilot launch with results exceeding
internal management expectations across all key metrics
 9,000 users acquired in a three week period alone
 Over a 36 hour period over 60,000 calls were placed across 300 landline and
mobile networks and over 6,500 messages were sent to users in over 120
countries
 Cornerstone enterprise agreement signed with Speedcast, a leading global
satellite network service provider
 Global Launch confirmed for FH1 2015
AussieSim
 Online sales revenues for the quarter totalled $38,416, increasing by 7.8% on Q1
2014
 Sim top-up sales increased by 10.9% from Q1 2014, to $35,567 in Q1 2015
 Activations increased by 44% from Q1 2014 to 543 for the quarter
 Renegotiation of rates across products – achieving a c.15% reduction
 A further 200 retail outlets added to AussieSim distribution network, through
exclusive agreement with 7-Eleven and organic partner growth
 Product growth development to continue throughout 2015
The Directors of ZipTel Limited (“ZipTel” or “the Company”, ASX: ZIP) are pleased to
report on the Company’s performance for the quarter ended 31 March 2015.
Operational
ZipT
The previous quarter saw the successful completion of the pilot launch enabling
management to confirm a global launch date in FH1 2015. During the pilot launch
over 60,000 calls were placed across 300 landline and mobile networks and over
6,500 messages were sent to users in over 120 countries, in only a 36-hour period.
The Company were delighted with the results, which demonstrated the apps
capabilities and potential to be scaled to much larger global audiences.
The Company signed a cornerstone enterprise agreement with Speedcast, a
leading global satellite network service provider. The agreement is for Speedcast
to use the ZipT technology and infrastructure under ‘white label’ to provide
telephony solutions to its thousands of users across over 60 countries worldwide.
In the past three months the Company has continued to focus on the final
development stages of the app and the global roll out strategy to ensure wide
market traction and global appeal upon launch.
AussieSim
Online sales revenues for AussieSim increased by 7.8% from Q1 2014 to $38,416.
This coincided with online sim sales increasing by 10.9% in the quarter from Q1 2014
to $35,567 in Q1 2015. The number of activations also achieved a 44% increase,
reaching 543 in Q1 2015.
During the quarter the Company initiated a recall of all stocks held by 230 resellers
to repackage and reprice the products in order to maintain a competitive
position in the market. This initiative resulted in a 50% decrease in the retail price
from $49.95 to $24.95 across all resellers. The Company was able to maintain it’s
dollar value margin of $14.95 by also repricing the wholesale price to $10 with $10
credit value included, as opposed to the previous cost of $35 with $20 credit
value. This resulted in the wholesale value of accounts payable decreasing by
70%, leaving resellers with a future credit to purchase stocks of AussieSim.
Ahead of the upcoming high travel season (April – September) the Company has
been focused on improving the AussieSim product and renegotiated its rates
across its products, achieving a c.15% reduction in rates across Voice calls, SMS
and data.
Following the launch of AussieSim DataCard in December 2014 the Company has
added another revenue stream to the business and expects the contributions
from the DataCard to increase the overall revenues at FY 2015.
This quarter saw AussieSim increase its retail points of sale, through its exclusive
deal with 7-Eleven and other channels, by adding over 200 outlets to its
distribution.
The Company continues to focus on driving the growth and scale of AussieSim
and will be adding further features to continually improve the product throughout
2015.
Corporate
As with the previous quarter the Company begins this quarter with a strong
balance sheet.
This coming quarter will be focused on the global launch of the ZipT application
and driving customer growth for the app.
Cash position
At the end of the Quarter the Company had cash at bank of $7.0(unaudited)
Outlook
The Directors are pleased with the performance of the ZipT app to date, and the
results have been outstanding in the pilot phase. The app is fast approaching a
wider launch and with important distribution deals in place with Mpire, and Air
Loyal the Company is well positioned to gain momentum quickly in the market
upon the global public launch.
We’re confident that the achievements to date of AussieSim will continue in 2015.
we intend to continually improve the products features as we look to expand our
distribution and substantially increase the Company’s revenue generation and
brand awareness.
-Ends-
For more information please contact:
ZipTel Limited
Bert Mondello Keaton Wallace
CEO Executive Director
T: +61 8 6252 4224 T: +61 8 6252 4224
W: www.ziptel.com.au
Media Enquiries:​

Asher Moses