VSBLTY Groupe Technologies (VSBY.C) expands in LATAM

Brushing Up on Our Spanish

$98.276M Market Capitalization

VSBLTY Groupe Technologies Corp. (VSBY.C) announced today that, in collaboration with Winkel Media, it has entered into an agreement with AustinGIS. For context, Winkel Media is an in-store media technology company and is VSBLTY’s joint venture partner. This agreement will finance, supply, install and maintain VSBLTY’s store media rollout in five Latin American (LATAM) countries.

With AustinGIS providing the underlying edge infrastructure on a subscription basis, including installation services and ongoing monitoring and maintenance, we are confident in reaching our goal of 50,000 stores as part of the key strategy for our Store as a Medium (SaaM) program,” said VSBLTY Co-founder & CEO Jay Hutton.

Previously, VSBLTY expanded its presence in Latin America via a monthly Software as a Service (SaaS) agreement with Winkel Media on May 3, 2022. However, the Company first set foot in LATAM through a joint venture with Retailigent Media and Grupo Modelo. Yes, Modelo, the beer company. This agreement sought to establish an international in-store media network, with 5,000 Modelorama locations installed by the end of 2021.

Rewinding a bit, VSBLTY signed a Letter of Intent (LOI) with Retailigent and Grupo Modelo on December 1, 2020. At this time, VSBLTY officially announced that it intends to create an international in-store media network of 50,000 Modelorama stores. To provide some background, Modelorama is a retail chain with more than 9,964 outlets across Mexico.

Monetization

With this in mind, VSBLTY supplies its proprietary software to its partners for analytics, security, and visual display. So, how is this profitable for VSBLTY? This agreement has created two revenue streams for the Company. First, VSBLTY receives licensing fees associated with its proprietary software. Secondly, VSBLTY shares one-third of annual operating profits from advertising revenue with Retailigent and Grupo Modelo.

Speaking of licensing fees, some of VSBLTY’s technologies used by Retailigent include the Company’s VSBLTY Vector™. The Company’s Vector offers a wide range of security features, including facial, object, and emotion detection. In other words, VSBLTY’s Vector is probably better at picking up on emotional cues than most people.

Additionally, Retailigent has created solutions like MiMo™, a touchless content platform. Utilizing VSBLTY’s demographics and behavioral habits, MiMo is capable of registering facial and body gestures to facilitate user interaction without the use of touch. Referring back to VSBLTY’s partnership with Winkel Media, this agreement involves the installation of Golden Record at the company’s convenience store media network in LATAM.

According to the Company, “Golden Record uses free guest WiFi in stores to improve customer experience, and customize messages to inform, influence, and motivate individuals to make impulse purchases at the point of sale.” The installation of Golden Record is expected to more than double VSBLTY’s existing SaaS revenue per store in the network. At the very least, VSBLTY expects the media value of each store to increase by 25%.

Picking up the Pace

As for VSBLTY’s latest agreement, AustinGIS is a provider of Internet of Things (IoT), smart city, digital transformation, and Infrastructure as a Service (IaaS) solutions. Through this agreement, AustinGIS will assist the Company in rolling out its media network in five LATAM countries. This includes Mexico, Ecuador, Peru, Colombia, and the Dominican Republic.

“The addition of AustinGIS to the program represents another milestone for the Winkel Media joint venture that was formed in early 2021 with Grupo Modelo, a subsidiary of Anheuser-Busch InBev SA/NV, and Retailigent Media, a Latin America-based media technology company,” continued Jay Hutton.

In summary, VSBLTY intends to complete its rollout of 50,000 stores by 2027, according to a statement made by Thiago Porto, VP of Transformation and People at AB InBev on December 1, 2021. For reference, Grupo Modelo is part of the InBev family of companies. Interestingly, Mr. Porto announced on March 15, 2022, that store deployment is now planned for 2024.

Coming up, VSBLTY plans to host its first quarter 2022 earnings call on May 25, 2022, at 8:00 AM EST. If you’d like to tune in, click here for the webcast link. Participants can also dial in at (844) 580-2042 using the passcode 6798314. For more information related to the Company’s earnings call, check out the press release here.

VSBLTY’s share price opened at $0.51 today, up from a previous close of $0.475. The Company’s shares were up 5.26% and were trading at $0.50 as of 10:46 AM EST.