Transcription of Finance News Network Interview with TTG Mobile Coupon Services Limited (ASX:TUP) Non-Executive Director, Ross BensonLelde Smits: Hello I’m Lelde Smits for the Finance News Network and joining me today from TTGMobile Coupon Services Limited
(ASX:TUP) is Non-Executive Director, Mr Ross Benson. Ross welcome back to FNN.
Ross Benson: Thank you Lelde, I’m delighted to be here.
Lelde Smits: First up, congratulations on listing on the Australian Securities Exchange (ASX). How has TTG been received?
Ross Benson: Certainly. The Company recently listed, the issue price was 60 cents, it debuted at 75 cents and the first day of trading closed at 90 cents. It gives the Company an implied market cap of approximately $560 million, so the Directors and the Board are delighted.
Lelde Smits: And could you run us through why you decided to list on the ASX and what it means to now be trading?
Ross Benson: Certainly, there’re two main reasons why the Company is listed here. The first one is that the Chinese view the Australian market as a highly regulated compliant and transparent market. And the second one is that in China, as a public company, it allows us to deal appropriately in a public profile with some of our very large counterparties that are major public companies, or SOEs (State Owned Enterprises) in China.
Lelde Smits: Now for investors not familiar with TTG. What is the Company’s core product offering and how do you generate revenue?
Ross Benson: OK, so the core product offering is the ULPOS platform. What the ULPOS platform is, is an open architecture that allows all the market participants, so your bank resources, financial institutions, merchants, consumer resources and acquiring partners, to operate cohesively to deliver the benefits to all the parties. So it’s fairly unique in that respect. The way that TTG generates revenue is, when consumers are registered on that platform as what we call a ‘cloud connected cardholder’, so either debit cards or credit cards, TTG participate in the revenue from that card user for every purchase and the payment revenue from the card.
Lelde Smits: So who are TTG’s main backers and what role do you expect they will have in propelling the Company’s growth?
Ross Benson: The main backers for TTG are firstly the principals and original proponents for the business in China. Our Chairman Mr Xiong still holds approximately 30 per cent of the Company. And the second backers are what we would call, professional e-commerce investors. The role that Mr Xiong and his team will play is they’re all actively involved at executive and management level, in driving the initiatives for the Company forward. And I think the professional e-commerce investors will play a role to assist and advise externally, where Mr Xiong seeks that advice.
Lelde Smits: And why do you believe Australian investors should be excited about TTG’s focus on China’s consumer market?
Ross Benson: TTG is tapping into this very fast flowing river of consumerism in China. And the reason they’re excited about TTG is that the business encapsulates three key consumer elements. One is you have a very rapidly increasing number of consumers in China. Number two is you have a rapidly increasing spend per consumer. And the third one is that you have this evolving definition of what the consumer is. So in a global comparison, the new Chinese consumer is one of the fastest adaptors of e-commerce. And so this business that sits between both online and offline represents a very exciting participation in that very fast flowing river.
Lelde Smits: Final question. Now TTG is trading on the ASX, what do you anticipate will be the Company’s next key milestone?
Ross Benson: The Company has many major milestones to achieve. We would say the next milestone is getting through the objectives of tomorrow. The Company’s Chairman would say that each day must be a milestone, because many small steps represent a big step. And so TTG’s focus is to short term, continue the expansion of ULPOS into all the major cities in China. But the way they deal with that is by taking each day at a time.
Lelde Smits: Ross Benson, congratulations again on the listing and all the best.
Ross Benson: My pleasure Lelde.
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