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Monday 02 December 2019

Mixed blessings for Pelatro Asian telco win

PelatroLondon-based AIM-listed precision marketing software minnow Pelatro, specialises in the telco space and serves a very international client base. Asia has been a particularly happy hunting ground for the firm, and it has won a major new contract with an unnamed Asian telco, described in today’s trading update as one of the largest global telcos in the world”.

The contract will be delivered on a managed service basis for an initial period of 5 years, and is expected to be worth between $10m to $12m. Pelatro sees this contract win as “highly significant for the long-term prospects for the Group” as it looks to build a sustainable business with high recurring revenues.

However, it looks like the time and management resource spent to secure the contract win has taken its toll on this year’s financial performance. The firm blames this for likely 2019 revenue coming in below expectations.

On the plus side, the new contract should help Pelatro start the new year in a stronger position than twelve months ago and despite the slow conversion and sales cycle the current pipeline at $15m looks pretty healthy.

Posted by: Marc Hardwick

Tags: contract   telcoms   update  

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