White Label Telco Licensing, revenue sharing is the most exciting fast track growth prospect I see that does not rely on digital advertising spending, plus one would be dealing with companies that have real money and a large ready made user base.
There are lots of possibilities with new app offerings.
World Phone could be your regular phone with benefits (do everything cheap or free) and though it is not quite there yet, maybe slightly cheaper than normal local call rates but free text, cheap international calls, cheap roaming as a bonus.
There are free messaging apps already and roaming costs are being reduced anyhow, the E.U for one has mandated a low fee charge ceiling to take effect.
Nor could offer data plans with free communication becoming the major data seller of choice.
Or else offer super cheap or free VOIP / and the option to upgrade your call to cheap normal quality, add in a file transfer and new app feature and this would offer a good reason to dump your mobile provider / home phone if you live in a city, with fall back to regular call if in the country.
Nor could be using corona for their own end's so one can keep their old number / home number as Norwood claims it can cope with 1,000,000 simultaneous users.
I am sure Nor will get it all right in the end, however the are also potentials negatives to consider.
Some Telco's may be wary of doing business knowing that Norwoods product will cannibalize their existing market, unless the technology has world wide patents in place and a single major telco in each country had an exclusivity deal.
The technology needs to be protected with world wide patents, the only one I have seen granted so far is one Australian patent, such patents cost a lot of money.
But they are also worth the value of the market they dominate. (= potential big patent spend)
I can foresee a lot of downloads happening with language and new app additions and depending on the new app additions a resulting jump of revenue if they perform as well and if they get monetized easily.
World Credit will also likely spur better profit margin and spending from converted users, but for enough growth to happen I feel that the product needs to be every day not just while on holiday or a business trip, on the bright side the statement's re app additions white label deals with Telco's in the last release seem to indicate this is the direction.
There are other potential negatives to consider however with new apps release, maybe there would also need to be a tripling of digital marketing spend for the same success with the new apps that are due to be added soon.
What makes me wary is, if current cash burn rate continues to the projected release dates of the new apps, this will coincide with the point at which a theoretical CR would be needed and the boost from the app release to the SP would be setting the ideal stage for it to happen, like last time.
Up to the point the last CR is spent, revenue needs to be 700% more than it is currently to break even.
The last update says "significant money is being spent on development costs" and revenue will fluctuate with getting World Credit tuned in.
I do see the products offering coming of age eventually and going places, but not without enough short term money in place to buy enough users to get the revenue into profit.
The question is will Nor start generating enough revenue (x 7 what they are) short term or will they more likely need to do CR again.
Plus once the revenue hits 3 m P.A (for a consecutive 12 months and corona makes a couple of sales- probably next year) 17.5% - 35% ish extra performance shares will be issued, they should not have been able to be triggered in my opinion until revenue is at 30m and in profit, as the effect would end up like a CR with no benefits and happen when one could do without that.
White Label Telco Licensing for all products, revenue sharing is the most exciting fast track growth prospect I see that does not rely on digital advertising and one would be dealing with companies that have real money and big user base to leverage, if it kicks in over this 1/4 it could just be what is needed, but I don't think it will happen in time.
So for now I for one am waiting to compare the next 1/4 cash burn rate to this. I expect new apps to be released and the SP to reflect the potential they offer to revenue growth, but I need a potential CR to be off the table and performance shares gone.
That is unless revenue starts to grow at a pace it will quickly grow to a level that money being spent is getting replenished x 7.
I don't want it to be the case but, I anticipate more CR, before white label telco deals start to take up the slack and a performance share issue right in the middle of the following growth spurt.
I sold in the 8's and continue to wait for the right time to re enter, watching market reaction to developments with interest.
Big potential but short to medium term downside despite new offerings due soon, IMO, unless major Telco deals start to flow in soon adding fast track revenue growth or Android starts to perform in line with its market share size (as it should have) which would push revenue to break even like it should have.
Regards Mark H
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