Swift TV Ltd (STV.AX) Earnings Call Transcript & Summary

Thanks, Brian. Yes, for FY '25, total revenue finished at about $17.7 million mark. of which 80% of it being reframed revenue is $14.2 million. So the underlying subscription revenue was solid for another year. The project revenue was around the $3.5 million mark, which continues to be lumpy and dependent on projects that come in, but there's a lot of good work done in pushing through with our partners at Iluka and others during the year. We were able to achieve a $1 million group EBITDA. And consider the listed costs as well for a company this size, the enterprise EBITDA is actually just over $2 million as well. So a pretty solid result for the year. In regards to the balance sheet, there's a couple of key actives we really worked through for the year. 1 of them being the debt position of the business. So we're able to work with [ Pure ] to reduce the debt position of the business from $7.6 million down to $6.2 million within the year. that being to try and clean up the balance sheet as much as possible to reduce those interest payments that have been on the company. So that manages at the end of the year, we actually had a net debt position of only $3.8 million, which is a reduction from FY '24 of $5.8 million. During this, of course, we've -- as we've put out to market, we spend a lot on our R&D expenditure during the period. The development of Swift TB is crucial for the future of the business. We have an in-house development team here of 12 people have been working harder than that through the year. So $1.3 million reflects that cash commitment. When we look at FY '26 year-to-date to what have we done in the last few months. So as you'll be aware, we've raised $1.6 million at a fully subscribed capital raise in October 2025, and we also received exercise of warrants from pure members for another $600,000. So setting us up in terms of getting that cash to really accelerate the rollout of Swift TB. And talking about Swift TB, a couple of key milestones here is that we finished the development of the software and the new user in space and user experience went live out of RoatHills, that's 3,000 rooms. and also 3 aged care sites with very positive feedback across both industries. So there's a big milestone for us in the last few months. We've also been officially Google certified and received approval from Netflix months other content providers to use their applications on our hardware. So -- in terms of clientele, Atal health care being an announcement we made last month is probably the biggest deal that Swift has struck in my 10 years experience here in Swift for the initial 4 sites open is the largest aged care provider within Australia, and we have a 3-year MSA with 3-year rolling terms at any site that bring on Swift TV during that period. And when we talk about that development -- product development, our team here is working diligently in the background to integrate into Botasacking systems. So that 1 has been 1 well with the first site expected when Swift TV is ready next year. So that we've already signed 1,800 rooms across 8 sites first with TV within the period. So the product isn't even in the stores yet and we've hit ground running in terms of room numbers there. So and I'll hand back over to Brian.

Thanks, Ryan, appreciate that. We may just like to take this opportunity just to really sort of step back and really focus on what makes Swift a business in simple the value proposition behind Swift, it's really for the entertainment, the software, which we develop all in-house, which provides the user interface and the user experience. And now it is hardware. We actually now have a partnership with Google which means that we can provide a Google certified hardware as standard of Android TV applications into the market. The fourth element, which is very important, which really makes us an enterprise-grade product is the ability to integrate within enterprise software systems, whether that's the sort of work we're doing with Opel to ensure activity schedules are dovetailed into the TV experience for business. So just running through that. rementioned this is a bit of a reminder for some of you who've been with us for some years, with our movie cabo is 1 that continues to grow. We've got currently 2000 plus movies. We have new release window to movies because we sell into what's called credit sleep environment. We have a very strong relationship with our suppliers and studios and also TV providers. that provide us this level of content. So it's basically airline grade, but with a huge back catalog on top of that as well. And this is a really good selling point to a lot of industries, and it's why people first approach us. then they discovered the other attributes of our product. Also, we have now is direct access into streaming apps. And as we've provided previously, we incur content to specific customers or to markets as well. So on top of that, as Ryan has mentioned, we spent a number of years really developing the new UI user experience. This brings into AI learning capabilities really, we have now affected 3 different user interfaces that we've currently developed in 3 markets, 1 for mining, oil and gas, 1 for aged care and 1 for hospitality now. So we're actually increasing our scope through the use of specific user interfaces and design to meet customer demands in each of these markets. And this really opens up the ability to commercialize our technology worldwide. So we own all of our technology end to end. We've also had an agreement with our quality entertainment providers to provide those same entertainment rights for worldwide distribution as well. So now we have a product that we moved from really been the mining, and aged care company to something that can get us into a lot wider markets, both in Australia and internationally. And this is what it's all about this new Google certified TV device. So we do have even preproduction samples in the house, which are all sitting around here. We actually are going into production with the first 5,000 units being produced next month with rollout. We're actually hoping to get some of that air freight into per as soon as possible, so we can actually start in amount to meet customer demand even the full Christmas. Now this partnership with Google is very important in terms of not only having access to everything that Google provides with access to things that Google are currently developing, such as their Gemini 3 AI capability. This is a technology that can be utilized on our device moving forward. We've also utilized the latest chipset device in the device that's ahead of other producers out there at the moment. So this all comes together in a very, very simple plug and play device. So it now is supplied to clients in a box with the powerstation table and betas in the remote everything is all integrated together. So it's -- we moved from a business that had a TV device for a motto different supplier put together on site, which required a lot of costs, a lot to set up and a bit of expertise. This cannot decline installed on-site. It simplifies the whole installation activities, and it really helps us to accelerate growth because previously, that capital cost to put a device into each room to actually do all the work behind it can be done by a client like a staff [indiscernible] for us to get it quicker. And really, the -- I suppose, the DNA that's always sat behind sites our ability to integrated into client management systems, whether that's a hotel point-of-sale system, whether that's a site map on a mine site or the property management system on the mine site itself. That our full integration into back of house is what's really Swift apart. So we've effectively developed a device that has a look and feel and user experience of a residential TV system but with the ability to put all of this enterprise-grade commercial systems integration into the TV. And that's very, very important with us in aged care by putting people's menus with their daily activity, personalized do activity schedule on the whatever you can imagine now can be put on the TV through this device without having to buy a specialized TV or program on TV or to do anything different. It can all be done through what we see as a very easy to use user interface that sits within the office of the actual customer. So we haven't made money out of all this stuff. I mean it really centers around the markets that are now open up to so the big addition here has been the hotels and global resort market, we're talking 17 million potential screens in that market. Now we are still minor the company. So for us, main focus will be to partner. We need to time resellers in these markets. We're first in this field with a Google device. And so basically, for us, it's getting out there as soon as possible to a wider reach to get our product to find those partners who can take us a lot further than we could ourselves in to these markets. So our monetization strategy is really takes 5 TV to the world. We believe we've got 1 of the best products in the world for a commercial enterprise-grade TV product. So really, it is how we commercialize that. getting into new market verticals is an international exposure I've mentioned. It's actually working with other people, not just in terms of resellers, but also technology with other people who are in this sort of space. there's a huge opportunity gap to fill that we think we can actually do. So we're actually moving towards effectively what we call a hardware-enabled SaaS product. So our focus is really on getting the box out there and as many units out there as soon as possible across the world. So we're doing that through really trying to generate demand. It's basically working with experts, industry experts in areas such as Asia. It's working with technology companies, with our partnership with Google, with our partnership with Netflix. We've approved their app on our product. and other suppliers in the industry who have deep relationships beyond ourselves such as Dolby Digital, who we actually use for the sand on the box as well. So these are people develop relationships with over the last 4, 5 years that really will help us get into places where we couldn't get into by ourselves. And also through industry recognition, the -- we're a finalist on all in strain aging meeting this evening. And setting that's something which gives us recognition as a technological provider for that industry. So we're trying to do everything we can for the size of business that we are to get this product out there to as many people as possible to get eyeballs on this new product and create not just product recognition and brand as well. And that's why we've changed our now from Swift networks to TV to really show where our future lies as a business. So as Ryan mentioned, in the last 3 months, we've already got 18,000 screen orders, and these are locked in orders. and we have plenty more which are in negotiation that will be rolling out as the new TV box comes on hand. So really, in summary, we'd like to invest. Well, we're really at an exciting time. We spent $25 million really tidying up the balance sheet. We did a small placement. We've cleaned up our debt position each year. since I've been here, we've reduced our debt position each year. We've knocked down to a lot smaller position where our net debt position is only 3 points -- thank you, Ryan. $3.8 million. So it's getting smaller each here. So for us, we now have a stronger balance sheet. We have what we think is probably the best product in its place in the world. We just need to get out there and put it in front of people and the things happen. So the fact that you've got Australia's like a educate provider taking on this product ability launch is a very good sign in that industry. We are talking to other players in bluechip clients in our native industries such as mining and oil and gas, and we hope to move things forward there shortly as well. So -- there's a lot of opportunity there as a business. We are still, what I feel, very underpriced in the market, but we'll do everything we can to get the opportunities to turn into ink paper and move the business forward. So just really summarize our Board and management and the business we're all aware and I'd like to also express my thanks to Peter for all health and stewardship. Pipeline business going back about 5 years ago as a Finance Director and has been very helpful in helping us award it through the business, understand the environment that we're in and take us to where we are now. So we wish them very well in the future. and also welcome Nick Berry on board as well and really just financial details. So effectively, the number of shares in issue a with an enterprise only of about $16 million as a business at the moment.

So we've just received a couple of questions, and I think I've covered off some of them in my presentation. First was the production -- progress on production of our set-top boxes. As I mentioned, we're on line to get the first 5,000 units produced next month. We will be air freighting probably about half of those in to meet customer demand. So that seems to be under control. There's a question here about the Opel rollout. We've actually installed the first new mobile site there having ground facility in Sydney last month. That's up and operational with our current set-top box, which -- and we're switching over to the new box as soon as that's available. And the next 2 local sites will be rolled out in February in the new year. Tactically other opportunities, really, as I've mentioned, we're engaged with a number of resellers across various markets. Next year, we really want to focus on finding international resellers, especially in those markets that I've mentioned about hospitality for us, we need to find partners who have relationships with the big hotel chains around the world. The other people we need to engage with, work with demonstrate this product and take this product into those new markets. We don't have the we with all to sell the sales team and run around the U.S. to sort of thing ourselves. We need to actually get out there and prime partners who can help us to engage with those resellers. We're also engaging obviously with not just new clients in mining, but also existing clients in both mining and Asia and let them know about our new product, and it's a fair bit of excitement. We expect to see a number of our clients transition to our new product over the next year or so. And also had a question about cash burn. We've also -- in this financial year to date, I was just looking at our overhead numbers. And effectively, we've actually brought down our overheads by $150,000 per month. So we've basically spent a fair bit of time looking at where we can -- and this is really about focusing the business and really concentrating on the development and the rollout of TV. But I also want to remind shareholders and really manage expectations here is that we are a tech company. This product, we don't just develop it and then that's the end of the story. -- we as a business or enterprise product. So we get requests from clients who want to see this box integrated into their back office system. So we will always need back-office support and technical support, not just to expand features on the product or reach the product, but also to help integrate and provide that enterprise grade integration into our client systems. So that's all the questions I have. I would like to personally thank shareholders for their support during the year. It's been great when each of you give me a call and then I can run through where things are. It's nice to refreshing to have your feedback and your counsel and encouragement as we've grown the business. So I'd like to thank you very much for your time and attending today. Thank you.

And just to finish off, I'd like to thank the management team, who really worked particularly hard over the last 12 to 18 months to really turn this company around. And to really give us a bright and interesting future.

Thank you, Charles. Appreciate it. Thank you, everyone.