- FingerMotion posted a 37% YOY revenue growth for the 2021 financial year
- The company’s Telecommunications Products and Services category posted the highest growth at 170%
- The company looks to build on this performance by capitalizing on the opportunities within China and, more specifically, the mobile payment and mobile recharge platform solutions market
- Its successful strategy is based upon pushing gross margins by offering new products and services and improving existing ones
In June 2022, FingerMotion (NASDAQ: FNGR) released its financial results for the year ended February 28, 2022. Of note in the report was the 37% year-over-year (“YOY”) growth in overall revenue, mainly fueled by the growth of Telecommunications Products and Services, which posted a 170% growth from the previous year (https://ibn.fm/nCpFs).
When making the announcement, Martin Shen, FingerMotion’s Chief Executive officer (“CEO”), noted:
“We have been able to steadily increase our margins by optimizing our product mix between Top-up and SMS.”
“While our biggest challenge continues to be access to non-dilutive capital, we remain steadfast in our belief that we will reach profitability in the near future,” he added (https://ibn.fm/KsNW5).
Founded in 2016, FingerMotion has grown to be one of China’s leading mobile payment and recharge platform solutions. So far, it serves over a billion users in the Chinese market, spreading its operations across the region.
Being in such a lucrative market, FingerMotion’s management recognizes the opportunities available, especially given the wide adoption of mobile phones to the proliferation of mobile payments. The management believes this will be integral in growing the company and creating even more value for its shareholders.
China is seeing an ongoing boom in mobile phone adoption. By December 2020, over 1.22 billion people had subscribed to mobile services within the country, representing 83% of the region’s population. By comparison, the global average mobile phone penetration at the time stood at 66%, making China one of the most developed mobile markets in the world (https://ibn.fm/DvxYA).
Experts project that this number will rise significantly over the coming years, mainly given the rapid deployment of 5G in China, along with the massive uptake of smartphones in the country.
This presents a tremendous opportunity for FingerMotion, particularly since one of its key initiatives is to keep pushing gross margins higher. The company is constantly working on new product offerings while exploring ways to improve existing ones. This has seen the introduction of the mobile protection program, along with the overall improvement of the Telecommunications Products and Services business.
FingerMotion also looks to capitalize on the growing adoption of mobile payments, following President Xi Jinping’s encouragement of mobile payments and financial technology platforms to “play a bigger role” in strengthening China’s economy (https://ibn.fm/2ElU2). With its central competencies in mobile payment and mobile recharge platform solutions, FingerMotion is poised to benefit significantly from this emerging market and its opportunities.
Going forward, FingerMotion looks to capitalize on its strengths while exploring new avenues for creating shareholder value and creating new revenue streams. It looks to build on the performance from the previous financial year, with the goal of achieving profitability soon. The company plans to follow through with its mobile protection program, whose rollout is on schedule, while also maintaining critical collaborations with its telecom partners and Chinese subsidiaries to maintain profitability throughout the year.
“One of our key initiatives is to keep pushing gross margins higher, and we have been quite successful by optimizing our product offerings,” Mr. Shen noted.
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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