VSBLTY CEO clarifies information on Winkel Media contract
Video: https://www.youtube.com 3-13-24
VSBLTY assumes Winkel Media field deployment and supply contract & assumes debt
Winkel Media is a JV partnership 33% owned by VSBLTY along with ABI’s 33% participation. Over the last several months, all three parties recently undertook an analysis of WM’s operating costs in preparation for significant scaling opportunities. The partners restructured the operational cost model for deployment and supply and effectively reduced costs by 40% and immediately brought WM into operational profitability.
Brands have been discovering that digital messaging at the point of sale, where 75% of brand sales are made, were producing 25% sale upturns. Keen to scale these results throughout LatAm brands have started to increase their purchases of digital POS advertising. WM’s media network is the largest retail computer vision enabled network in the world and is ahead of its time.
VSBLTY’s assumption of VM’s delivery contract and loan (mostly for equipment) with a debt service of $32,000 per month was based on the realization that the contract’s monthly revenue of $150,000-$170,000 would significantly offset the debt assumption. And at the same time, this arrangement allows WM to double down on profitable revenue growth currently developing in full force based on proof of concept results.
The deal represents $2 million in annual recurring revenue to VSBLTY and without the need to hire additional employees to fulfill deployment obligations.