Company Podcast, page-43

Just a recap as this partnership with Elisa is proving invaluable to this company ...

ASX Announcement | 31 May 2024
Spacetalk Limited (ASX:SPA)
Spacetalk Leads European Market Reentry with Finnish
Telecom Giant

Highlights:
• Spacetalk announces a pivotal distribution agreement with Finland’s leading mobile
operator, Elisa, marking a strategic re-entry into the European market. This retail
partnership will see Spacetalk’s Adventurer 2 and Loop products available in 67 Elisa
stores and online, with presales already underway aiming for a launch in June 2024.
• The term of the agreement is ongoing, and Elisa will have a 12-month exclusive in the
Finnish telco retail market.
• Initial stock intake will be 1600 Spacetalk devices with annual unit sales estimated at
5000 per annum.
• This move is not only set to generate significant hardware revenue but also provides the
foundations for establishment of a steady stream of monthly recurring subscription
income as product sales eventuate. Initial stock shipments are already enroute from
Spacetalk’s Australian facility to Finnish distribution centres, aligning with local
promotions and ensuring market compliance.
• This Finnish launch spearheads Spacetalk’s carefully orchestrated plan for international
expansion, poised to bolster the group's revenue through both device sales and
subscription services. The company views this as a replicable model for further
expansion into other markets.
About the Expansion:
Spacetalk Limited (ASX: SPA) (“Spacetalk” or “the Company”) Spacetalk is excited to re-enter
the lucrative European market, starting with a partnership with Elisa. This initial step is part of a
methodical expansion strategy designed to tap into markets that offer both immediate revenue
opportunities and align with our operational goals.
Finland was selected as the launch point due to the strong market fit for Spacetalk’s products
and Elisa’s extensive distribution network. Our aim is to establish a scalable, replicable business
model that enhances both device margins and recurring revenue.

Following a strategic pause in international activities in 2023 to refine our business approach
and cost structure, Spacetalk is now poised to implement our growth strategies abroad. We are
committed to leveraging this Finnish venture as a template for future market entries.
Finnish statistics indicate that the addressable market of 5-18-year-olds for Spacetalk devices
and software is approximately 0.9m. When combined with the wider Nordic region to include
potential target markets such as Denmark, Norway, Sweden and Iceland the additional
addressable target market for device and app sales is attractive. While the precise revenue
contribution from this expansion is not quantifiable, the strategic importance and potential are
evident.
Spacetalk Chief Executive Officer and Managing Director Simon Crowther, said:
“The Finnish market reentry with Elisa is a significant milestone in Spacetalk’s journey towards
expanding our international footprint. After recalibrating our strategy in 2023, we are now
leveraging established relationships and a robust business model to ensure profitable growth.
The immediate positive impact on our recurring revenue streams underscores the effectiveness
of our new market approach”