As Australia’s aging population continues to swell amid our high quality of life, the rise of retirement communities has emerged as an underserved market now being targeted by media tech company Swift Media (ASX: SW1) which has won its fourth contract in the sector.
The contract win will see another 350 retirement community apartments be offered Swift Plus – an in-house media network that enables facility managers to broadcast information alongside Swift’s Video-on-Demand services that offers film and lifestyle content.
“We are delighted to sign our fourth client in Retirement Living. Having successfully adapted our new Swift Plus product to suit the customer needs in this sector is an important validation of our ability to leverage our proprietary technology into adjacent markets,” said Swift Media CEO, Pippa Leary.
Since launching the Swift Plus platform in March 2020, Swift has installed the service to more than 3,000 rooms across more than 30 aged care facilities and retirement villages for the sector to emerge as a core growth market for the Company.
Making the service most appealing is the fact that 85% of rooms in the market are not serviced by anything other than free to air TV. Coupled with the fact that the general demographic of residents is not adept to streaming services like Netflix or Stan, the product is specifically designed to be easily accessed by users over the age of 80.
Further highlighting the value Swift Media sees in the market, the sector was responsible for $2.1 million of Swift’s $23.1m total revenue in FY20 but in their recent AGM, presented plans to target $29m revenue within 5 years = a 13x growth multiple.
Although the Company does not expect this retirement village contract to have a major material impact, it follows $2m of contract wins announced earlier in the week to supply Swift Plus to mining and Government sites.
Swift Media currently has a Share Purchase Plan open to its shareholders who can purchase SW1 shares at $0.0375 each.