Sharecast News
04 May, 2021 13:21 04 May, 2021 13:21

Pelatro enters framework agreement with existing large telco customer

coins currency investment insurance business finance company
Business and financePexels

Telecoms customer engagement software company Pelatro announced on Tuesday that an existing large Asia-based telco customer with around 230 million subscribers, and operating companies across multiple countries, had entered into a framework agreement with it for three years.

The AIM-traded firm said that under the group purchasing arrangement, the operating companies in the various jurisdictions could be serviced by Pelatro under one agreement at pre-agreed pricing.

At the same time, it would “more deeply embed” Pelatro into the telco’s operations, and help to ensure an even closer working relationship, the board said.

The key aspects of the agreement were that the annual maintenance support and ad hoc change requests with its various operating companies were brought under the framework, with a base level of man days for change requests forming part of the contract each year.

That would make the change requests recurring in nature, along with an annual maintenance fee.

Also under the agreement, Pelatro would extend level two support, which precedes the regular annual maintenance support, resulting in immediate additional recurring revenue for the group.

The deal further included all other products and services of Pelatro, together with a price list, so all of the telco’s operating companies now had the option to procure all of the products and services from Pelatro without a formal request for proposal process or price negotiation.

While the company expected the incremental revenue impact during the current year to be around $0.1m, it would be about $0.5m per year from 2022 onwards.

Pelatro would be paid a fixed amount quarterly for all the base products and services, making it a recurring revenue contract.

“With this framework agreement, we are further cementing our relationship with this telco group for the next three years,” said chief executive officer and managing director Subash Menon.

“We will be able to sell many new products and services to them during this period and change requests, which have been repeating in nature, will become recurring revenues.”

At 1303 BST, shares in Pelatro were up 6.19% at 60p.


News Source: © 2021 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.