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On 11 February 2019, Swift Networks Group Ltd (ASX:SW1), a company which belongs to the media and entertainment industry group and provides communication, content and advertising solutions, announced that it had received $662 million aged care funding boost from the Federal government. The success was the result of the series of contracts won by the company in the last few weeks under the aged care sector. The company believes that with the acquisition of Medical Media, its growing presence will be strengthened in the aged care and health sector. The company expects that the acquisition might get completed by 15 February 2019. With an increasing customer base of SW1 in this sector, the benefits will be enjoyed by the shareholders of the company without direct exposure to property and construction risks.
Xavier Kris who is the CEO of Swift Networks Group Ltd stated that out of the total funding received from the Federal government, $320 million is for residential services. It will allow the operators to invest in the services which will provide the residents with real voices as well as choices. The residents will be treated like a guest instead of patients. Through the platform of the company, the residents will be provided with a two-way communication service. Along with that, they may also access specific content related to custom curated exercise, well-being, education and dementia. It will also allow users to communicate with their friends and family directly.
Recently, Swift Networks successfully acquired an initial three years of contracts with many operators. These included the Berrington Care Group (who is Perth-based, the luxury aged care provider) and Allity Aged Care. The agreement between SW1 and Berrington Care Group will allow the latter to utilize the Aged Care solution of Swift across over 200 screens. Allity Aged Care, as per the agreement, will also be receiving the Swift Aged Care solution in 77- room Gosling Creek Community in Orange, NSW. Through this, there is a possibility for significant expansion for SW1 across the Australian network of Allity Aged Care for over 40 facilities.
Karen Gillingham, who is the owner and operations director at Berrington stated that he was excited that they will be able to offer extensive in-room entertainment options to the residents through this contract.
Other than this, on 21 January 2019, the company expanded its Gateway Village contract to provide in-room services to Gateway Village in Port Hedland, Western Australia. With this extension, the agreement between SWI and Compass Group has been extended to provide in-room services to another 442 rooms. Through this new extended contract for the next two years, SW1 will undertake a network infrastructure renovation to enable Wi-Fi internet provision along with the ongoing support.
The company also won three years sealing contract with Telstra where SW1 is required to provide in-room digital services to Voyagesâ 64-room workforce accommodation facility in Alice Springs in Australiaâs Northern Territory.
SW1âs contract also got expanded with Western Areas Ltd where SW1 is required to in-room digital services to an additional 68 rooms.
The expansion of contract between SW1 and - Tier 1 LNG Operator would require SW1 to provide in-room digital services to another 280 rooms.
In the last six months, the stock has generated a negative return of 32.53%. By the closure of the trading on 11 February 2019, the closing price of the stock was A$0.290, up by 3.571%. The stock has a market capitalization of A$33.99 million and approximately 121.39 million outstanding shares.
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