The headline result was a positive EBITDA but a reported loss after exercise of options expense. No doubt FS will be back to tell us all about that
However, the most important news for going forward with increasing volumes is the high gross profit of 72%. That will provide very strong net profits going forward;
The Company is pleased to report a Gross Profit of $2.95m for the December half which is a 100% increase on PCP. Gross Profit Margins remain robust at 72% albeit a decrease from 92% in the PCP when most of the revenue was from sales of a communication service with very low marginal costs.
Before the end of this financial year we will be launching SPACETALK into the UK market, which is 4 times larger than our market in Australia and New Zealand. Our plans are advanced, and stock has been ordered. We look forward to announcing our distribution partners as soon as documents are finalised.
3,500 new app subscribers for January. Considering many families will have 2 or 3 watches, that might translate to around 4,000-4,500 watch sales in January. Great result and in line with what I was getting from Applyzer and JB website monitoring.
The gross profit margin is the highlight of the results.
