Key Performance Highlights
- Net cash outflow improved by 39% over the corresponding quarter last year, with most expense categories showing improvement.
- Receipts from consumer sales increased by 148% fuelled by high repetition sales.
- Corporate sales decreased by 72% from previous corresponding quarter as we focused on new mass market distribution strategy known as Flexiroam Partner Program 2.0 introduced in March 2017.
- Flexiroam Partner Program 2.0 had secured 33 new distributors in 14 countries.
- The new digital marketing strategy continued to show positive results with 98% reduction in marketing expenditure from the previous corresponding quarter.
- Research and development activities were streamlined resulting in further costs reduction compared to the previous quarters.
- There were 3 times as many active users in this quarter compared to the previous corresponding quarter but product manufacturing and operating costs increased by only 29%, clearly reflecting the positive effects of economies of scale.
- Payment for staff costs remained constant while administration and corporate costs increased by 54% from corresponding quarter due to higher freight, talent recruitment, software subscription and consultancy costs.
- Payment to manufacturer increased by 2,672% as we stocked up X-microchips in anticipation of higher demand in the near short-term future.
- Flexiroam enters into a joint marketing agreement with UnionPay International ("UPI") aimed at gaining leverage on UPI's international customer base. UPI is a global payment services provider with a wide range of payment solutions for businesses and consumers.
- Flexiroam signs a partnership agreement with Scoot Tigerair Staff Union ("STSU") to promote Flexiroam services to STSU members. The one-year collaboration focuses on airline personnel, identified as prime candidates for using Flexiroam X, by providing added convenience for frequent travellers through access to fast internet on the go abroad without the need to switch SIM cards.
- Flexiroam enters a joint marketing agreement with Air Line Pilots Association Singapore ("ALPA-S") to promote Flexiroam services to ALPA-S members. The two-year promotion offers ALPA-S members exclusive offers when purchasing Flexiroam X, again targeting airline crews who are frequent travellers across many countries.
- Flexiroam signs a partnership agreement with Korean Air ("KA") to promote Flexiroam services to KA passengers. KA is the flag carrier of South Korea, with a fleet consisting of 177 aircrafts and operating scheduled flights to 129 cities in over 46 countries. The partnership is designed to increase exposure and widen awareness of Flexiroam X by partnering with a leading Korean airline and a dominant travel industry player, in line with the Company's growth strategy of securing recurrent revenue streams from frequent travellers.
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About Flexiroam Ltd
FLEXIROAM Limited (ASX:FRX) is a leading telecommunications company offering universal voice and data services for mobile users globally. Its flagship data roaming product, FLEXIROAM X has coverage in over 100 countries with 4G speed in over 56 countries. FLEXIROAM is an asset light telecommunications company that does not own physical infrastructure yet is able to connect to around 580 network operators globally. FLEXIROAM aspires to be a household name in borderless mobile broadband service in Asia and beyond. Please visit http://www.flexiroam.com