[MEDIA] Family Zone Cyber Safety (ASX:FZO) is the first company...

Family Zone Cyber Safety (ASX:FZO) is the first company to develop and implement an ecosystem approach to parental control & cyber safety, one that uses cloud and embedded technology to provide integrated online protection for children at home, at school and on mobile devices.

Analyst Comment:   Other technology companies have listed on the ASX over the past number of years with “potentially” revolutionary ideas, however in most cases these are still to generate revenues. By contrast, we expect Family Zone to turnover around $2m in FY17  (TSI estimate) before substantially lifting revenues over the next couple of years ($21m FY19 – TSI  estimate) as their unique parental control product continues to be expanded into both national and international markets.

Parental Control industry: With an estimated 1 in 3 young Australians having experienced cyber threats online today, it is not surprising that the parental control industry has developed into a $2bn per year industry and is growing at a rate of around 10% pa.  The sector is currently dominated by large multi-national corporations that generally offer stand-alone software solutions.  Family Zone identified the major problem with these solutions is that they do not always protect the child outside of the home, can be hacked by children looking to bypass the protection measures and are not always up to date with the latest trends/apps, which are generally the areas of greatest risk.

Valuation:  We initiated coverage on Family Zone with a target valuation of $0.87 / share (current share price $0.24 / share).   We determined this valuation by completing a DCF valuation on the company.