Tech company MGM Wireless (ASX: MWR) could soon be in line for a significant uptick in sales having entered into a distribution agreement with FTSE250 retailer Dixons Carphone plc (LON: DC) for MGM’s child-friendly SPACETALK product. 

The agreement enables Europeans to purchase the all-in-one smartphone, watch and GPS device through Currys PC World online store, which is one of the UK’s biggest retailers, for £199. 

“Currys PC World is a top consumer electronics retailer and this deal furthers our UK rollout,” said MGM Wireless CEO, Mark Fortunatow. 

“Our UK post-launch sales already are 70% above post-launch sales in Australia for the same time. Currys PC World is a destination brand for electronics and mobile consumers and part of a group which reported 700 million website visits for FY19.”

“Increased availability of SPACETALK will help us capitalise on Sky’s marketing campaign which has lifted UK sales significantly since its commencement.” 

Beyond the SPACETALK device, users have an option to activate Sky Mobile’s £10 per month plan which will include a bonus 12 month subscription to MGM’s smartphone app, AllMyTribe, which was recently the top grossing App on iOS and number 2 on Google. 

Key to the functionality of SPACETALK is the two-way 3G phone calls and SMS messaging to a parent-controlled list of contacts whilst GPS capabilities enables the device to be tracked by parents via MGM’s AllMyTribe App. Key to the safety features of the device is that it does not give children access to social media or the open internet. 

According to Gartner Research, smartwatch sales are forecast to grow from $17.0B in 2019 to $27.4B in 2021 with 30% of all sales to be for children aged 5-13. 

The agreement continues a strong month for MGM which recently entered into a sales and marketing agreement with Telstra (ASX: TLS) which will market SPACETALK to their mobile and broadband customers. 

MGM’s Total revenue was $7.1 million in Fy19, up 161% compared to $2.7 million in the previous year however the Company reported a $4.6m loss due to amortising prior year investments and non-cash option and share issue expenses of $3.4 million.

*The author of this article is a MWR shareholder