Beam (ASX:BCC) delivers strong Q3 with surge in sales receipts and dynamic ZOLEO subscription growth

Highlights 

• Beam Communications has delivered another solid quarter of growth
• The Company clocked an increase of 55% in customer receipts for the March quarter.
• The demand for ZOLEO devices is reaccelerating following COVID-19 disruptions.
• There was a 26% jump in net ZOLEO ANZ subscriptions with half of the quarter’s gains coming in the month of March and the momentum continuing in April.
• Beam plans to launch ZOLEO into the European and UK markets in May amid the buoyant demand for personal satcom devices.

The gradual coming back to “normalcy” after two-year-long disruptions triggered by the COVID-19 pandemic has brought in a wave of thriving business for Beam Communications Holdings Ltd (ASX:BCC).

The Company has been witnessing strong demand for personal satellite equipment with growing relaxations in COVID restrictions. The ASX-listed Company has struck the high chord of sales and subscriptions in the March 2022 quarter with a boom in sales of its global satellite communicator ZOLEO.

Beam holds expertise in the design, production, and distribution of satellite, cellular and dual-mode equipment applications, and services across the globe. The Company is the developer of numerous world-first innovations. Some of the world’s largest satellite and telecommunications companies, such as Iridium, Telstra, KDDI, Inmarsat and Thuraya have adopted its products and services.

Read More: Beam Communications hits record interim revenue as ZOLEO readies for launch in Europe

Strong Q3 numbers set the stage for FY22

The ASX-listed Company secured customer receipts worth AU$7.3 million in the reported period ended 31 March 2022, representing a surge of 55% year-on-year and more than 19% quarter-on-quarter.

Image source: Company announcement, dated 26 April 2022

Related article: ZOLEO success sets up Beam Communications for a terrific second half

The growth in quarterly customer receipts can be attributed to the strong performance and successful delivery of quarterly objectives across key divisions of the firm, particularly the growing demand for its global messaging device ZOLEO.

Moreover, SatPhone Shop business recorded a 14% year-on-year jump in sales.

ZOLEO leading Beam’s path to success

During the March quarter, net ZOLEO subscriber base grew to 2,562 in Australia and New Zealand, up by 26% over the previous quarter.

Due to the ease in COVID-19 restrictions, there has been a jump in the sales of ZOLEO devices. Around 50% of the surge in Australian subscribers in 3QFY22 was recorded in March. The Company is witnessing similar momentum in the ongoing month of April. 

Image source: Company announcement, dated 26 April 2022

The demand for ZOLEO devices continued to grow strongly during the March quarter with fresh orders for 20,824 units. Beam shipped and invoiced 10,000 ZOLEO devices in 3QFY22. As of now, Beam has delivered 35,354 units during FY22, which is higher than the total number of units delivered in the entire FY2021.

Growing retailer base

During the quarter, Beam won agreements with several Australian retailers to expand the sales of ZOLEO. The Company signed a retail partnership agreement with Bapcor Limited’s (ASX:BAP) Autobarn to sell ZOLEO devices at its stores nationwide.

Also, Beam has joined hands with Leisure-Tec Australia, a leading RV/camping equipment group, to flourish its distribution channel in the personal communication devices market.  

Also read: Unsure of cellular coverage? Meet ZOLEO^TM, a device that can save your life

With increase in demand for the multi-award-winning seamless global communicator and Beam’s strengthening footprint in the industry, the Company is set for a mega launch of the life-changing device ZOLEO into the United Kingdom and Europe in the month of May.

Stock information: BCC shares traded at AU$0.340 on 26 April 2022. The Company has a market capitalisation of AU$30.67 million.

To know more about Beam Communications, click here.