ZOLEO Economics

Has anyone else attempted to model what the economics of ZOLEO might look like?

Given the many moving parts and lack of disclosure, I have given it a crack.

Obviously there are numerous assumptions and this is a ball park guestimate.

Happy for any constructive debate on the assumptions, in particular the below assumptions which have a material impact and I have taken an educated guess:

• Number of new customers pa (assumed the current run rate of approximately 22,000 pa)
• % annual customer attrition rate (currently assumed 20% per annum)
• % of year that customers pause their account (customers apparently can do this and I have assumed they do this 20% of the time)
• % of the monthly subscription paid to the telco/satellite company for access (currently assumed 50%)
• % sold through 3’rd party retailers (currently assumed 75%)
• % of monthly subscription shared with the retailer (currently assumed 50% like a trailing commission)

As you can see, even with some conservative assumptions the economics could look very exciting.

And before people accuse me of ramping, have a look at my previous comments on this stock which weren’t always positive.

All the usual disclaimers...this is just a rough guestimate DYOR etc