Goals
In its Annual Report for 2005, Aspiro stated a number of goals for a three-year perspective. Some have already been achieved, and Aspiro has also added some new goals.
Aspiro intends to be the Nordic region’s largest distributor of music to mobile phones.
In 2006, Aspiro launched its music downloads service on five Nordic operators’ mobile portals. Music to mobile sales gathered real pace in 2006, from a few hundred tracks daily in July to between one and two thousand by year-end. Aspiro’s goal is to supply its music solution to a number of other Nordic operators in 2007. Another of Aspiro’s ambitions is to build one of the market’s strongest music channels targeted directly at the consumer.
Aspiro will consolidate its positioning as the leading distributor of mobile games.
In 2006, Aspiro sold over 2.5 million mobile games. Mobile game sales on comparable markets were some 5 million units (EJL Wireless Research LLC, 2007).
Aspiro has one of Europe’s strongest mobile game portfolios. The company anticipates increasing interest in mobile games both as a result of mobile phones becoming more sophisticated and progressively better games being launched in mobile formats. Aspiro’s goal is to further secure its positioning in mobile games.
Aspiro will maintain Nordic market leadership.
Aspiro estimates that the Nordic mobile content market grew by an average of 15% in 2006. In 2006, Aspiro chose to downscale sales in unprofitable advertising and media channels in favor of improved margins. Even if looking ahead, the company will continue to prioritize profitability in its existing business and simultaneously maintain its secure market position.
Aspiro will retain high profitability.
Full-year 2006 EBITDA was SEK 63.5 m, against SEK 35.6 m in the previous year. The goal is to maintain high profitability in existing operations. The new mobile TV, music, search services, communities and mobile marketing initiatives are expected to reduce year-2007 EBITDA by SEK 15-25 m. Aspiro expects these initiatives to go into profit in the financial year 2009.
Aspiro will achieve success in its new services segments, thus creating healthy growth.
Several of the new initiatives that began in the second half-year 2006 have already noted some successes, one example being music to mobile sales rising significantly in late 2006. Aspiro intends to be a growth company, and will grow in its new mobile TV, music, search services, communities and mobile marketing services segments. In the next three years, Aspiro expects robust growth in these segments.
Aspiro will have a strong position on operators’ mobile portals.
In its download services segment, Aspiro has defined the major Nordic operators as a prime strategic segment. Data and mobile content services will gain increasing significance to operators, and Aspiro intends to be the most attractive partner for them. Aspiro’s goal is to increase sales on operator portals by supplying the best and most in-demand content, plus the best campaigns. Aspiro will also offer delivery reliability and professional customer services. Aspiro will operate entertainment segments on portals so that operators can focus on the total solution for their subscribers and portal marketing.
Aspiro will posses some of the most attractive brands/channels in its services segments.
In 2006, sales through Aspiro Channels were 28% of total, and the goal remains that Aspiro channels will represent one-third of sales. In its existing business, subscription services and text-based directory inquiries, will be priorities. Many of Aspiro’s new initiatives will target the consumer directly.
Aspiro will have some of the most attractive brands in its services segments in the Nordic and Baltic regions.
Strategies
Broad Distribution
Aspiro will be everywhere consumers want mobile services. Accordingly, Aspiro’s sales are partly via partners, mobile operators and media companies, and partly via proprietary web and wap portals, as well as advertising. Aspiro develops long-term, exclusive collaboration agreements with partners that have large user bases. In tandem, Aspiro enhances and consolidates Aspiro Channels to create direct relationships with the consumer.
Offering the Latest and Best
Aspiro will always offer in-demand mobile phone services. Aspiro purchases those services that are in demand from a high number of leading content suppliers. Aspiro will always have the most attractive services portfolio because of its unique knowledge of consumer purchasing patterns and thanks to economies of scale with centrally coordinated procurement. Keeping pace with technological progress and demand, Aspiro will continually enhance its offering with new types of mobile services. With its size, well-extended distribution network and sophisticated reporting systems, Aspiro will be the self-evident partner for many of the world’s leading suppliers.
Size and Integration Bring Economies of Scale
To succeed in the mobile content services sector, size matters. By being a market leader, Aspiro reinforces its market position with content providers and also secures its relationships with sales channels. Additionally, Aspiro focuses on developing services that can be integrated to tie the user closer to the company.
Moreover, Aspiro achieves economies of scale, particularly in the management of content, operations and administration, and creates the right prospects for building strong brands. This is why Aspiro has pursued the unequivocal strategy of consolidating the mobile content services market since back in 2002. Aspiro has grown from sales of some SEK 18 m in 2003 to some SEK 448 m in 2006. As a result of this strategy, profitability has also increased sharply.
Growth through Organic Initiatives and Complementary Acquisitions
Firstly, Aspiro will create growth through an enhanced consumer offering, and secondly, by entry into new geographical markets. Expansion in the Nordic region is feasible to respond to the convergence between the Internet and mobile telephony, and in new services segments and distribution channels. Corporate acquisitions may be considered as a complement to organic growth.
Where Aspiro primarily offers a solution to other companies, as in mobile TV and music download services, its strategy is also to grow outside its domestic markets in the Nordic and Baltic regions.