RNS Number : 0801Q

Pelatro PLC

17 June 2020

June 17, 2020

Pelatro Plc

("Pelatro" or the "Group")

AGM statement

At Pelatro's Annual General Meeting ("AGM") to be held later today, Chairman, Richard Day, will give the following update on trading and the Group's strategy for growth.

Current trading

As noted in our announcement of 8 April 2020, we continue to see "business as usual" and it is pleasing to report that the Group's activities have been minimally impacted by the coronavirus pandemic. Most of our employees continue to work from home, with a small number working from our offices in India, where the lockdown restrictions have been partially lifted. Despite the additional scrutiny of any investment decision due to the pandemic, our customers continue to invest in our solutions, which allow them to reach their subscribers directly. Demand for Pelatro's solutions has not flagged and, as a result of various new contracts, including Change Requests and new "modules" (as explained below) our revenue visibility for 2020 has increased to US$5.0m and Annualised Recurring Revenue (ARR) to $4.7m.

Product and contract update

Telcos the world over are struggling to leverage software tools to increase revenue and reduce churn. Pelatro's advanced processes and expertise enables us to evolve campaign strategies, design the campaigns, execute them and effectively measure the returns. Our Managed Services offering comprises operational support for the telcos, covering both business and IT operations. Pelatro has also built skill sets covering telco marketing, analytics and data science, which are essential to win and execute Revenue Gain Share contracts. We have focused on winning recurring revenue contracts from early 2019, including both Managed Services and Revenue Gain Share contracts, with six such contracts won to date.

Pelatro has an end-to-end product suite covering campaign management, loyalty management, data monetisation and unified communication solutions. Having set up these cornerstone products, the Group has been developing several add-on modules to further enhance the offering. Each module adds a specific feature, or use case, to the base product and can also be sold independently of each other. The Group has launched seven such modules this year, helping to maintain Pelatro's competitive advantage and strengthen relationships with telco customers.

Growth strategy

The recurring revenue contracts won over the past 18 months, including the significant 300 million+ subscriber contract announced in December 2019 demonstrates that the Group's strategy is working and positions it well to win more contracts. To help leverage off these credentials, we intend to increase our investment in sales and marketing both in existing emerging market geographies (Asia Pacific, Africa and Latin America) as well as new geographies (Europe, Middle East and Central Asia), with a focus on winning new Managed Services contracts. Our aim, therefore, is to increase our current ARR of $4.7m to low double digits in the next two to three years, to more than cover the Group's operational cash cost base.

Outlook for the year

We remain optimistic about the prospects for the telecommunications industry. At the same time, Pelatro is increasingly cash generative, with clearer visibility on future income streams and our new product modules provide a strong foundation for our continued growth. All our existing customers can benefit from these modules at some point in time, helping to ensure a continuous stream of revenue for Pelatro. Further, these modules enable us to build more value for our customers, deepening the partnership between us.

Given the increase in revenue visibility we are confident of delivering a performance in line with expectations for 2020.

For further information contact:

 Pelatro Plc 
 Subash Menon, Managing Director                 c/o Cenkos Securities 
 Nic Hellyer, Finance Director 
 Cenkos Securities plc (Nominated Adviser 
  and Broker)                                    +44 (0)20 7397 8900 
 Stephen Keys / Cameron MacRitchie (Corporate 
 Michael Johnson (Sales) 

Notes to editors

The Pelatro Group was founded in March 2013 by Subash Menon and Sudeesh Yezhuvath with the objective of offering specialised, enterprise class software solutions for customer engagement principally to telcos who face a series of challenges including market maturity, saturation and customer churn.

Pelatro provides its "mViva" platform for use by customers in B2C and B2B applications, and is well positioned in the Customer Engagement space. Our technology orchestrates the digital journey of the customers of the telcos through contextual, relevant and real time offers and loyalty programs across multiple channels including websites, social media, apps and others.

For more information about Pelatro, visit www.pelatro.com


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(END) Dow Jones Newswires

June 17, 2020 02:00 ET (06:00 GMT)

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