Norwood Systems Limited (ASX:NOR) announced to the ASX today that the consumer downloads and revenues from its telecommunications platform have shown a strong growth during the holiday period.
The company’s World Phone platform saw an increase in downloads and revenue by 31% and 35% during the period 15 December to 5 January 2016.
World Phone is a mobile application that enables its users to connect with their contacts for roaming or long-distance calls through high-quality, low-cost landline networks. According to Norwood, this app enables easy and affordable international voice calls to be made from any Android or iOS enabled mobile device.
The app also allows users to opt for a feature called “Be Local”, through which they can communicate whilst travelling overseas. They will be subscribed for a nearby local number that allows their contacts to call them without the cost of dialling their international number.
Norwood earns its revenue from in-app purchases that are made by the installed users. These are one-off in nature, such as additional calling minutes inside the app and Booking.com commissions. The company might also earn from subscription revenue, which consists of leasing local numbers and other plans that are available on the app.
The company has stated that it is progressing in the development of product features of World Phone, including free app-to-app calling.
Norwood Systems’ CEO and Founder, Paul Ostergaard, commented on the company’s progress: “We ended last year on a very upbeat note, with our World Phone app having been downloaded more than 2.5 million times in more than 200 countries since launch five months earlier. We also had a good holiday period, witnessing robust downloads, monetisation, and network performance during the period. Entering 2016, we are working on additional monetisation initiatives, focusing on rolling out our World Credit platform and expanded payments options, which will increase our market reach whilst providing customers complete flexibility on how they transact with our products.”
NOR was last traded at $0.084 as at 1:10 PM (AEDT) and is up more than 211% in the past year.
Author: Simon Herrmann
Jan 07, 2016
Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.