18th Jun 2014 09:37
LONDON (Alliance News) - Galasys PLC Wednesday said it has won its first theme-park IT outsourcing contract since it listed last month, a deal that will be implemented over the next three months and is worth about GBP88,000, and that boosts its efforts to base its fees on ticket sales by its theme park customers.
"Instead of taking standard project fees as the company has traditionally done in the past, Galasys will receive fees based on a revenue share from the sale of certain allocated tickets over the coming years. Consequently, the board expect to reap a substantially higher return based on this (IT outsourcing) model as compared to project-based pricing structures," it said in a statement.
The deal with the Wenzhou Dolphin Bay Water Park is Galasys' fourth IT outsourcing contract in China. Under these deals, the company is paid for providing ticketing software and hardware through ticket sales under a revenue share model.
"This is another step in our plan to transform our current project based business and revenue model and to correlate our revenue more directly to the number of visitors to our theme-park customers," Chief Executive Sean Seah said in a statement.
The company has been operating since 2005 and supplies services to 13 of the 20 most visited theme parks and 15 of the top 20 water parks in China. It also has customers in Malaysia. Galasys is going to use the GBP3.1 million proceeds of last month's IPO to fund its expansion into new markets, like the UK, and to develop new products and services.
The Wenzhou Water Park consists of an outdoor park and an indoor aquarium. The outdoor park will operate only during summer, whilst the indoor aquarium will run all year long. The entire site has a maximum capacity of 30,000 people at one time.
Galasys shares were flat at 20.5 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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