Ann: Reinstatement to Official Quotation, page-61

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Milo7

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13/04/18

17:17

Post #: 32444890
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Originally posted by goldbear77 ↑

@mickeysea et al

valid views here on both sides. the $100k Digicel income recognised as at 28 feb is low.(it wasnt at date of the asx query - they just used date of the last 4C).

but this is the teething issue BUD referred to in 2nd last webinar to do with an opt in contracts and trial early adopters freeloading that Digicel said it was taking in hand

- if you were given a one to 3 month free trial and had to sign to start paying - would you call up Digicel to sign up - with the setup still feeding you information at zero cost?

This is primarily in Jamaica - a world capital of the casual approach to the working day and 'she'll be right mon'. Strange place to trial a new product - but imagine it was chosen due to very high energy costs/sensitivity and lots of hotels/resorts + lack of direct hurricane impact that particular season

Likely Digicel didnt have a client follow up discipline and that they put some Ohms into rats and mice tyre kicker organisations who may not pay whatever price but take anything thats free.

Some of those would also just be places that agreed to trial the units to help Digicel train and get a feel for what they were doing as close business partners with Digicel - with Digicel giving them a nudge/wink and sayign they could get a possible win on reducing their electricity costs for free.

thats how sales people work when trying to seed a new product. they try to lower the cost resistance to initial takeup - then work on massaging the client into full time takeup over time

no coincidence BUD has since shifted to an opt out clause where customers go on the books automatically - as well as introducing an install app for dummies and the larger current measuring capacity of the coils

these are learnings/benefits that will flow through to other markets and speed up income flows. Think you can see it in the Rizon deal - use it or lose it within 12 months. Digicels' 3 years gives them a lot more negotiability around a miss year 1

at same the pricing has doubled - that suggests clients are giving positive comment on the actual benefit/value proposition and are at the higher end of the value chain - fewer installs, larger amounts, less pushback on price, bigger energy budgets so bigger savings, fewer uninstalls

something I remain unclear on is what is the lag of the carrier billing the customer.

Digicel has to pay BUD within one month of receiving Ohm revenues.

But if Digicel is like my carrier Optus - they bill clients quarterly.

the Ohm pricing on ' per month' but that doesnt neccessarily mean the billign is done on monthly basis.

I'm not sure how thats managed - it may me i missed something - or maybe it needs fleshing out

restatements of income rolling in from other distributors from April/May are positive

the one thing thats definitely true is - income on BUD's books does not reflect all the units in the field - esp those under 2017 contracts.

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Thanks for your views GB, always appreciated.

Personally, I am happy to continuing holding after considering buds responses and some constructive arguments made on the forum.

Will reevaluate after the June Quarterly.

BUD Price at posting: 17.0¢ Sentiment: Buy Disclosure: Held
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Ann: Reinstatement to Official Quotation, page-61

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