- FingerMotion generates revenue from its SMS and MMS business and its Telecommunication Products & Services (“TPS”) division
- FNGR is guided by innovation and has always sought to increase value for its clients by continually improving its SMS and PigeonHoles Integration System (“PIS”) platforms
- The company has differentiated its TPS division by creating a platform capable of handling thousands of transactions per minute with a 99.7% completion rate
The Short Message Service (“SMS”) transmission volumes in China have been growing since the turn of the century, increasing from 440.1 million messages in 2000 to 304.6 billion in 2005 (https://ibn.fm/DcpWq), and, more recently, 1.23 trillion in 2020, representing a 279,382% increase in just two decades. Although the number of messages sent dipped between 2013 and 2018, it eventually resurged, and the upward trajectory has not stopped since (https://ibn.fm/vG92d).
It was during this resurgence period that FingerMotion (OTCQX: FNGR) entered the SMS enterprise market through its wholly owned subsidiary, JiuGe Information Technology (“JiuGe”), having acquired SMS infrastructure in early 2019 (https://ibn.fm/rKD6U). Notably, JiuGe had already landed recurring monthly contracts to send millions of SMS messages for enterprise clients in its first year of operation. Since then, the company has grown its clientele thanks to its solid performance.
Just recently, for example, FingerMotion announced it had inked a new volume-based contract with China Mobile Fujian, a subsidiary of China Mobile. The new agreement follows JiuGe’s commitment to continuously improve its platform, resulting in positive customer response rates and distinguishing it from competitors. The deal is expected to grow FingerMotion’s gross margins for SMS by up to 30% in the current financial year (https://ibn.fm/0Rq5p).
This SMS and MMS Services division generates the majority of the company’s revenues and also brings much higher margins than the Telecommunication Products & Services (“TPS”) division. Its formative business unit, TPS generates a tremendous amount of Gross Transaction Volume (“GTV”) but earns low revenues from commissions. Even so, these two divisions currently represent the only revenue-generating business units – the others are Big Data Insights (“Sapientus”) and Rich Communication Services (“RCS”) Platform Services.
Despite being a low-margin business unit, however, FingerMotion considers the TPS division a crucial part of its overall business plan that sets a strong foundation for access to telecommunication companies and their users, integral to the operations of Sapientus (https://ibn.fm/gb9Ig).
Through PigeonHoles Integration System (“PIS”), FingerMotion’s proprietary universal exchange platform, the TPS division connects telecom service providers and online stores. PIS ensures that consumers can top up and recharge, purchase mobile phones, fulfill subscription plans, redeem loyalty points, and purchase data plans, all within a reliable and secure system that facilitates real-time reconciliation, efficient settlements, and simple integration for partners.
“One of the challenges we solved with our PIS platform was integration. Each of the telecoms had their own interface, which was proprietary to them so that there wasn’t a single platform where you could get connected into the respective telecom ecosystem. We solved that and even made it easier for the major e-commerce platforms to access the telecoms,” commented Shen in a presentation during the 2021 Emerging Growth Conference (https://ibn.fm/Gf2tX).
Shen further described how FingerMotion cemented its relationship with its telecom partners in a multistep process whose initial stages entailed collaborating with the companies and identifying what they needed. FNGR then utilized this knowledge, coupled with an innovative approach, to develop the reliable PIS platform capable of handling over 5000 transactions per minute, with a 99.7% completion rate.
With this particular system, which the company is continually improving, FingerMotion has fundamentally differentiated itself from competitors, thereby wooing customers who are always looking for platforms with a high completion rate.
Further, FNGR offered top-notch customer service and, through continuous innovation, also provided additional products. Lastly, the company measured its own success using metrics and parameters, such as the revenue per user, and rolled out new campaigns demonstrating how it could improve the figures.
Focused on providing value to its clients, as well as continually improving its services through innovation, FingerMotion has differentiated its two revenue-generating business units from competitors. This approach has cemented its relationship with its existing clientele and is also bound to help it grow its revenues and client base.
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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