Niche Pay TV play Swift Networks doubles earnings with move to aged care
TV and entertainment provider Swift Networks has doubled its earnings in the past six months as builds on its Hollywood blockbusters to add Alzheimer’s exercise content.
Swift (ASX:SW1) — which provides video and entertainment in niche segments such as mining and healthcare — doubled its previous earnings to $1 million in the first half of the financial year.
The news pushed Swift shares up 9.3 per cent to 47c, for a market cap of $32 million. The stock has traded between 20c and 59c in the past 12 months.
Boss Xavier Kris told Stockhead the result was down to expansion of its customer base.
“Initially our fundamental focus was on the resources industry but we have taken what we learned there across to … hospitality and aged care,” he said.
“The core technology and platform works in an identical fashion across all verticals. It is just what the end user sees that differs.”
As well as telco services and entertainment content for mining, oil and gas sites, the company now also services aged care and retirement homes and the hospitality sector.
“Rather than a library of Hollywood movies for those in resources, we can provide aged care residents with dementia or Alzheimer’s specific content and enable family members to post videos and photos directly through the platform,” Mr Kris said.
Swift now has its sights set on servicing maritime clients such as cruise ships and oil rigs.
“I think we have largely flown under the radar, but we have an underlying philosophy and are motivated and incentivised in the right way to develop EBIDTA to the business,” Mr Kris told Stockhead.
In the December quarter the company reported $5 million in customer receipts and $4 million in the bank.
There is an estimated spend of $4.7 million in the coming quarter but the company believes an upswing in the resources sector will bolster its client base and revenue.
At the end of last year Swift announced several deals to service workers for listed mining companies such as Pilbara Minerals (ASX:PLS), OZ Minerals (ASX:OZL), Altura Mining (ASX:AJM) as well as Talison Lithium.