ASX-listed wireless service provider SkyNetGlobal increased revenues from its wireless network to $1 million in the last financial year, an annual rise of 638 per cent.
It said the revenue was generated through the sale of airtime on its wireless local area network (WLAN) and Wi-Fi hotspots, which were mainly located in Australian airport lounges and hotels.
The network infrastructure, including approximately 40 hot spots, was sold to parent company Telstra in January for $3.3 million, but SkyNetGlobal continues to provide the wireless service through a roaming agreement. It has sold more than 2500 units of its pre-paid wireless service since it was launched in November.
“Demand is increasing month by month,” said SkyNetGlobal CEO, Jonathan Soon.
“We expect our wireless revenues to continue growing at a strong pace as more notebooks and personal digital assistants are developed with built-in Wi-Fi technology.”
Soon said forecasts for this financial year would be released next month but the previously reported deal with McDonalds in Singapore was not expected to have much of a positive effect because the network will not be up and running until February.
“For success in this financial year we will rely on growing our existing base,” said Soon. “We will also get additional revenue from expanding coverage through roaming agreements.”
SkyNetGlobal announced it had secured $5 million in additional funding from its largest shareholder, Alby Australia, last month and said it would use the money to fund acquisitions.
“We are looking at opportunities at the moment but are not in a rush,” explained Soon. “We are here for the long term and will wait for the right opportunity.”
He said he expects the market to consolidate next year but claimed SkyNetGlobal was in a good position to play a role in that process.