- FingerMotion, a U.S.-based communications technology services provider focused on the massive potential of China’s 1.4 billion mobile device user market, reported revenue growth of 37 percent YOY to $22.93 million in its most recent annual financial report
- Company CEO Martin Shen expressed “cautious optimism” that FingerMotion can maintain its momentum, in part because of a ready-to-launch mobile device protection plan similar to AppleCare that the company expects to be competitive in China
- Shen said he also expects the company’s nascent big data product to play a large role in revenue growth in coming years as other industries discover the value of FingerMotion’s first-mover infrastructure in the market
- Thus far, the strength of FingerMotion’s offering has been SMS texting services, user time top-up loading and payment processing, strengthened by a good working relationship with China’s telecommunications giants
Less than two weeks ahead of the newest scheduled report on company earnings, the CEO of mobile technology services provider FingerMotion (NASDAQ: FNGR) is expressing cautious optimism that revenue growth amounting to a 37 percent increase overall during the past year is sustainable, largely through the launch of a device protection solution in the Chinese market to undergird FingerMotion’s existing SMS texting and payment processing capital sources in the Asian juggernaut.
In an interview with investor media outlet Proactive, CEO Martin Shen referred to the device protection plan as “in essence AppleCare” for Chinese consumers as far as the design of its operation model — a potentially popular service because device protection “hasn’t really had any sort of cohesive format in China,” he said.
FingerMotion is partnering with telecommunications giants China Unicom and China Mobile as well as with a large New York Stock Exchange-listed insurance company eager to break into the Chinese market to provide its new services to consumers.
“(China Unicom and China Mobile) have kind of built the AppleCare(-similar) device protection costs into their phone plans,” Shen told Proactive in the interview posted online July 11 (https://ibn.fm/qV8c0).
“Now with the massive onset of 5G phones there’s a really large market in China that’s looking to change up their phones for, let’s say, 3G and 4G phones to 5G. So as (consumers) go and get new phones, the cost of this AppleCare(-similar product) is built in,” Shen said. “So that revenue is already there. We’re just going to be partners with the insurance company as well as with the telco. … It’s actually not that capital-intensive for us. It’s a really symbiotic relationship with these companies.”
FingerMotion is benefiting from a first-mover status in payments processing and consumer data analysis within China. The company’s big data product, known as Sapientus, has thus far focused on providing predictive services for the reinsurance market as insurance companies seek to establish a system for risk assessment in the country, and FingerMotion expects it to become a big revenue driver within the next couple of years as well.
“We’ve had our actuaries, our data scientists working for about two to three years now in building up that wealth of information, so that we’re way ahead of anybody who wants to come in (to the country),” Shen told Proactive. “And also because we have such good relationships with really the largest telcos in China — China Mobile, China Unicom and China Telecom — I think that that kind of relationship lends itself to being very strong footing in terms of working in the Chinese market.”
Shen said institutional and retail investors have been looking into the company, not attracted by the stock price so much as FingerMotion’s story and where the company expects to go.
“I think our revenue right now is really just the tip of the iceberg, just building on the top-up and the SMS (services),” Shen said.
For more information, visit the company’s website at www.FingerMotion.com.
NOTE TO INVESTORS: The latest news and updates relating to FNGR are available in the company’s newsroom at https://ibn.fm/FNGR
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