Pelatro PLC – Final Results

Pelatro Plc (AIM: PTRO), the global Multichannel Marketing Hub software specialist, is pleased to announce its final results for the year ended 31 December 2018.

Financial Highlights

• Revenue increased by 95% to $6.12m (2017: $3.15m)
• Repeat revenue increased to $3.10m (2017: $0.62m)
• Repeat revenue now accounts for 51% of revenues (2017: 20%)
• Pre-exceptional EBITDA* increased by 88% to $3.75m (2017: $2.0m)
• Adjusted profit before tax increased by 73% to $3.1m (2017: $1.8m)
• Adjusted earnings per share** increased by 13% to 10.1c (2017: 8.9c)
• Net cash as at 31 December 2018 $1.8m (2017: $3.1m)
• Operating cash flow increased by 56% to $1.2m (2017: $0.75m)

* earnings before interest, tax, depreciation, amortisation and exceptional items
** based on pre-exceptional earnings after tax

Operational Highlights

• Earnings enhancing acquisition of certain assets from the Danateq Group:
  –  Initial payment of $7m funded by equity fundraising
  –  Doubled subscriber base to 325m and increased customers to 12 following acquisition
  –  Broadened product suite
• Contract win worth $1.7m with Tele2
• Contract win with Telenor to supply Loyalty Management Solution globally:
  –  Further strengthening existing relationship
  –  Opportunity to provide services to range of Telenor operating companies
• Contract to provide mViva Contextual Marketing Solution to PrimeTel of Cyprus:
  –  Further expansion into Europe
• Contract with NCell to supply mViva Campaign Management Solution:
  –  Deepens engagement with the Axiata Group

Post Year End Highlights

• Contract win worth $1.5m with Vietnam-based Vinaphone:
  –  First contract in Vietnam
• Contract win worth $1.6m with Ooredoo Maldives:
  –  Significant opportunity to cross sell into the wider Ooredoo Group
• Inaugural mViva Data Monetization Platform contract with Tele2 Kazakhstan:
  –  Establishing a new revenue stream for the Company
• Revenue, Cash and Collection:
  –  Visibility over c.$5.2m revenues for the current year
  –  $1.8m cash collected
  –  Current net cash at $2.22m
  –  Debtor Days down from 251 to 153

Richard Day, Non-executive Chairman of Pelatro commented: “This first full year as an AIM-quoted public company has been one of progress and significant achievement for Pelatro, at both the operational and strategic levels. Growth in our revenues from $3.1m to $6.1m was in line with our expectations and was underpinned by a combination of increased business with existing customers as well as the addition of new revenue lines as we expanded our customer base, which has grown from  7 to 16 to date. We also broadened our geographic reach, breaking into the European market with our first contract win in the region with Primetel of Cyprus in October 2018.”

“In July 2018 we announced our acquisition of certain assets from Danateq, with its customers and real-time self-learning analytics platform and complementary campaign management solutions. The acquisition was funded with a further equity placing which was strongly supported by our shareholders, raising approximately £6m. We are grateful for their support. I am pleased to say that the Danateq business is living up to our expectations and the staff joining our enlarged group have been a tremendous fit.”

 “With our growing customer base, we have an increasing ability to cross-sell our products deeper across our network. We are winning new business with the telcos and have announced two new customers already in the current year, in addition to the launch of our Data Monetization Platform. Visibility over some $5.2m of revenue and a $15m pipeline, gives us every confidence as we look forward to the rest of the year.” 

A copy of the results presentation provided to analysts will be available on Pelatro’s website later today (www.pelatro.com).