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05/03/17
09:21
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Originally posted by Last of the Mohicans
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As promised the answer from IR
Not one I expect any of you were expecting to see.
LOTM
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On your question below, the Freeway branded app is great for top line growth, but white labelling provides better margins. Why? Mainly because Freeway doesn’t have any customer acquisition costs. Additionally, in the case of carriers hosting our Connected Services Platform, e.g. Tata Communications, we further reduce our operating costs lifting margin to over 80%!
Syntonic can allow carriers and big-brand content providers to spend Billions on their assets and customer acquisition while assuming a percentage of the rev and/or licensing royalties.
Kind regards,
Syntonic Investor Relations
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Is it possible for you to explain this part of the quarterly report in more detail for me, I'm very confused by it.
Consumer demand for Freeway in Indonesia and Malaysia remain strong with nearly a 6x quarterly increase in app downloads. Syntonic is developing a robust consumer base for data rewards that will transition to sponsored data offers once Tata Communications deploys the white-labelled Syntonic Connected Services Platform across regional carriers.
Why would you want to Transition your consumer base onto the white label version?
What's to be gained by it ?
LOTM
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Something just seems "off" about that reply. I don't know if it's the use of the words "billions" or that freeway "doesn't have customer acquisition costs"
My understanding was that it does have significant customer acquisition costs.