Oslo/Hamburg 27 June 2022 – Xplora Technologies GmbH, a wholly-owned subsidiary of Xplora Technologies AS (“Xplora”, “the Company”), has signed a partner wholesale agreement with Telekom Deutschland GmbH. The agreement establishes Xplora as a mobile service provider in the German market in H2 2022, driving accretive recurring service revenues.
The agreement with Telekom Deutschland GmbH (“Telekom”) will allow Xplora to bundle its smartwatches with Xplora SIM cards and offer mobile subscription plans in the German market. Telekom is already selling Xplora products through a long-standing distribution agreement, and the parties have jointly developed the market for children's smartwatches in Germany.
Xplora announced a strategy to extend connectivity services to key markets outside the Nordic region in 2022. This moves the focus from device-centric to solution- and service oriented generating profitable recurring revenue streams. As of today, Xplora is live with connectivity services in Norway, Sweden, Denmark, Finland and the UK, with agreements signed in France and the US market for H2 2022 launch. Germany will be Xplora’s 8th market with connectivity.
Xplora has reached a target market penetration of nearly 6% in the Nordic markets combined and 17% in Norway. Nearly all Xplora smartwatches sold in the Nordics are bundled with Xplora SIM cards, allowing the customer to experience smoother onboarding and driving improved customer satisfaction. The Company has announced a target of extending service provider operations to 1-3 new markets in 2022. Today’s agreement marks the fourth new service provider agreement in 2022.
Telekom and Xplora started collaborating to build the category of children’s smartwatches in 2019 through a distribution agreement and joint marketing campaigns. The two parties extended their relationship in 2020 through joint development and launch of X5 Play eSIM, the world’s first eSIM smartwatch for kids, accompanied by joint TV and online marketing campaigns, and continued to develop the market jointly in 2021 with spring, summer and Christmas marketing campaigns.
“I am thrilled to extend our strong relationship with Telekom to include connectivity in Germany. Germany is Xplora’s largest market representing more than 40% of last year’s revenues. We have secured a leading distribution footprint and strong brand recognition in Germany, in part as result of our strong partnership, joint marketing efforts and close collaboration with Telekom. We have to date sold nearly 400,000 smartwatches in the German market, and we have strong ambitions to continue to develop the market and drive further penetration. The partner wholesale agreement with Telekom will be an important tool to drive further penetration and profitable operations in Germany” says Sten Kirkbak, CEO and Founder of Xplora.”
Commercial launch of the Xplora mobile subscription plans under the agreement is expected in H2 2022.
For further information please contact:
Sten Kirkbak, CEO +47 9220 3710, email@example.com
Mikael Clement, CFO +47 9900 8000, firstname.lastname@example.org
Karen Guillot Ruiz, Business Analyst +47 9488 5859 email@example.com
Xplora is a platform and services company and an industry leader in the market for children’s smartwatches. Xplora was founded to give children a safe onboarding to the digital life and a better balance between screen time and physical activity. Xplora’s vision is to enable children around the world to experience how their everyday activities can create value and make a positive change in the world. The company is headquartered in Norway with operations in leading European markets. Xplora is listed on Euronext Growth under the ticker symbol XPLRA.