Syntonic grows revenue as it continues to gain active mobile platform users
Syntonic has grown its number of quarterly active users from 4.15 million the previous quarter to 5.96 million as at 15 November.
Mobile platform and services provider Syntonic (ASX: SYT) has announced it is starting to receive “robust and diversified” revenue streams from multiple sources, as it continues to gain users of its technology services.
The company today reported in an operating update that in just over six weeks, its quarterly active users (QAU) have grown from 4.15 million to 5.96 million.
QAU measures the number of active users, and therefore the revenue-bearing potential of its products, during a three-month reporting period. As the current reporting period does not end until the end of December 2018, this growth so far is quite significant.
According to the company, early revenue streams are being recognised during the current quarter from the RoamFree traveller application deployed by telecom provider Smart Communications in the Philippines, Vodacom’s enhanced mobile advertising platform in South Africa, Tata Communications’ global ‘opari’ digital commerce platform, and operations from Syntonic Brazil.
“We are now delivering the financial results of our FY18 business development efforts with new FY19 mobile operator deployments in South Africa, Asia, Middle East and Sub-Saharan Africa,” Syntonic chief executive Gary Greenbaum said.
“Moreover, we are starting to see initial revenue contribution from Syntonic Brazil’s mobile commerce business, despite operations only being partially transitioned to the company,” he added.
Growing revenue
Syntonic has developed two technology services: Freeway, which allows consumers sponsored and subscription mobile access to content and applications; and DataFlex, which enables businesses to manage split billing expenses for employees when using their personal mobile phones for work purposes.
These technologies form the basis of multiple mobile platforms. In the case of the data roaming service, RoamFree, Syntonic generates revenue from travel service providers who pay Syntonic an affiliation fee (often a percentage of the transacted travel service), as well as through commissions paid by Smart Communications for all international data plans purchased with the RoamFree app.
Under its service agreement with Vodacom in South Africa, Syntonic generates revenue based on data usage generated by advertisers and brands, commissions for data-free downloads of apps and fees for accessing platform services.
For the September quarter, Syntonic reported revenue of $988,861, up 147% on the June quarter and 105% compared to the corresponding period in 2017.
According to Mr Greenbaum, the recent strong advancement in QAU places the company “on track for another successful quarter”.
He said a key focus for the company’s management team has been on building diversity in revenue sources.
“During the [June to September] quarter, we expanded our revenue streams with new carrier deployments and were able to recognise early Freeway revenue from our recently acquired Brazilian mobile commerce business,” Mr Greenbaum said.
“With the acceleration of tier-1 carrier deployments and the full operationalisation of Syntonic Brazil, we remain confident about the company’s short-term and long-term outlook,” he added.