Pelatro Share Discussion Threads

[rivaldo] 01/6/2022 13:10

Just caught up with the Investor Meet presentation.

Good summary by gleach23 above. Also interesting to hear that PTRO expect to gain 5 or 6 new telco customers this year (against the 3 last year) and are already in the contracting stage with 3 of them. I assume this week's announcement is the first of those.

[rivaldo] 31/5/2022 06:12

A small but encouraging contract win announcement, as this is a new customer, and in the African market too.

Interesting comment also from Subesh re new customers:

"we are confident of adding several more in the year"

[sidam] 28/5/2022 13:46

Although no research as yet, he did say that Cenkos, the former nomad and broker, has $9m for current year and that he thought the company would beat that. Also on target for 5 or 6 new clients with 3 in contract stage. That really augers well for next year as well.

[gleach23] 28/5/2022 08:14

Very reassured after watching the IMC presentation with Subash Menon his usual bullish self but with apparent justification imo. Such a better platform than Proactive.

The share price appears to have suffered since last Nov from a dearth of news, primarily a lack of contract win announcements (Covid inhibited) and the extended wait for results which caused the share price to drift so much.

As he says this is such a better quality outfit since 2017 when it floated. The share price can move fast and I'm expecting positive momentum to build throughout the remainder of this year on the back of imminent contract wins in the existing telco space and an initial win or 2 in mobile advertising. This on the back of revenue projections heavily underpinned by the successful switch to the SAAS model and a switch of broker from Cenkos to finnCap.

[mfhmfh] 24/5/2022 14:27

hxxps://masterinvestor.co.uk/evil-diaries/evil-diaries-advertising-to-some-effect/

[rivaldo] 24/5/2022 12:48

Here's ST's full tip for the record (excuse the formatting!):

"Tapping into Software-as-a-ServiceA company that makes its money by providing telecom operators with precision marketingsoftware has delivered a step change in revenue and profitability

May 23, 2022 By Simon Thompson

Annual cash profit rises sixfold to$2.8mn (£2.2mn) to deliver small adjusted pre-tax profit on 80 per cent higher revenue of $7.2mn
Annual recurring revenue and repeat income account for 92 per cent of total, compared with 80 per cent in 2020
New business pipeline worth $17mn

Aim-traded Pelatro (PTRO:22.75p), a company that makes its money by providing 23 large telecoms operators with precision marketing software, delivered a step change in profitability last year. Cash profit ros emore than sixfold to $2.8mn (before accounting for non-cash depreciation,share-based payments and amortisation charges) as the operational leverage of thebusiness kicked in on an increasing recurring revenue stream.

Pelatro uses 'big data' analytics (artificialintelligence, machine learning and otheranalytical techniques) to reveal patterns,trends, associations and behavioural traitsof telecom subscribers. These insightsenable mobile telecom operators tomonetise their data, boost average revenueper user and their share of subscriberspend, while also reducing churn rates. It’sproving popular. The group added threenew clients to its customer base last yearand now processes data of over 1bn telecom subscribers every day.

However, the real game changer has been transitioning large Asian telecom operators to long-term managed service contracts that produce an annual recurring revenue(ARR) stream and a high level of repeatbusiness. To put this into perspective,Pelatro’s ARR of $4.8mn accounted for two-thirds of last year’s total revenue of $7.2mn,and that excludes $2mn of change requests,effectively repeat revenue earned from clients as products evolve. The group started 2022 with ARR of $6mn, or fourtimes higher than at the start of 2019.Furthermore, the addition of three new customers has reduced concentration risk,with only two clients now accounting formore than 10 per cent of revenue.

The directors are also leveraging Pelatro'sposition in 'big data' analytics by entering the mobile advertising space, a market thatis projected to double in size to $221bn by 2024. Expect the first customer to be signedthis year, adding another potentiallyvaluable revenue stream.

Importantly, gross cash of $3.3mn(excluding borrowings of $0.75mn) has been buoyed by $1.9mn received from debtors since the financial year-end, whilethe strength of the order book is such that ARR is expected to account for 80 per cent of the $9mn revenue forecast this year, saysmanaging director Subash Menon. New house broker finnCap has yet to initiate coverage, but the business is clearly generating strong momentum.

This explains why Pelatro’s share price bounced 21 per cent post results, having been de-rated since the half-year results(‘Dial into a lowly rated tech play’, 28September 2021). However, even if theshare price doubles from this point, Pelatrowould still be undervalued as its enterprise valuation is only 1.1 times forecast revenuefor 2022 and a miserly 3.7 times historic cash profit, respective discounts of 66 percent and 74 per cent to finnCap’s Tech 40 Spec Software index. Buy."

[mfhmfh] 24/5/2022 11:24

35p next stop?

[bookbroker] 24/5/2022 07:18

He’s been writing about this ages, no sooner has the heat died down it just plummets. I anticipate another funding round to pay the director’s salaries.

[gleach23] 24/5/2022 07:15

Positive write-up by Simon Thompson last night explains the strong start this morning.

[cordwainer] 24/5/2022 06:39

^ I'm not reading another proposed equity placing, only mentions of last year's placing.

[sl71] 24/5/2022 06:29

Another net loss
negative return on capital
another $4m equity raising : approx 30% of £10m market cap : more dilution
pedestrian growth in customer numbers
share price performance atrocious
£135k bonuses paid to exec directors
What is the point of this company if it isn’t making its shareholders richer ?

[boadicea] 23/5/2022 10:50

A somewhat mixed bag but the trend looks mildly promising.
The successive half-year revenue figues from 1H2019 onwards (6 half years) in $m are
2.71 / 3.96 / 2.29 / 1.73 / 3.45 / 3.84 .
This shows a strong recovery in 1H2021 which has flattened somewhat in 2H but is complicated by the welcome increase in APR figure. However there seems to be some difficulty in debt collection with an implied $m2.08 still (today) outstanding from Dec 2021 if I interpret correctly. The current global cost squeeze will not make this any easier.

The historic Price to Revenue ratio at 22p is about 1.7 (advfn appear to have taken revenue figure as sterling instead of dollar) which is modest for the sector and should leave room for highly geared earnings upgrades if growth (and debt collection!) can be maintained and if overheads remain under control.

Too many if's there for making a big splash on this one but well worth watching.

[rivaldo] 23/5/2022 07:55

Good to see an uptick in the share price after today 2021 prelims. The quality of the core business looks to be steadily improving in overall terms with ARR rising nicely, as is the number of clients, with the group currently trading in line with expectations this year.

But PTRO made an almost £900k operating loss in the last H2 after achieving £400k operating profit in H1'21.

The main reason for this is Amortisation and Depreciation which rose to £2m in H2 from £1.2m in H1.

Adjusted EBITDA fell to around £1.2m in H2 from £1.6m in H1.

Wages and salaries rose to £2.9m from £1.8m the prior year, with employee numbers rising to 235 from 166. Directors' emoluments rose to £782k from £675k.

So PTRO are certainly gearing up.

I'm mildly encouraged about progress here, but there are factors which make it too early for me to top up at present.

[cordwainer] 22/4/2022 13:59

Results were expected late march / early april according to last update.
Will hopefully confirm maiden annual profitability under completed recurring revenue model, plus new contracts as already announced since interims (which also showed a profit).
Late results could be indicative of a further contract win?

With a book cost of 3.5% of my portfolio, I'm showing a paper loss of 50% on this holding. But it's hard to imagine further downside given the valuation and without some specific black swan.

[mikeh30] 12/3/2022 19:11

These guys still buying luxury cars with shareholder funds?

[rivaldo] 25/1/2022 09:04

The good news is no more adverse surprises. Trading is in line and ARR is going in the right direction (slowly) - up 11% in the year to $6m. And new customers are being won, with this number up 3 to 22.

Cenkos have left their 2022 forecasts unchanged at present, presumably to update after the prelims.

Pretty uninspiring in terms of share price catalysts for the moment. The core business is looking OK, and the m/cap is now just £12.3m, but I'm unlikely to add to my relatively small holding without more contract wins and a sense that things really have turned for the better.

Cenkos summarise:

"Pelatro has won three new customers during FY21, taking it to a total of 22 telecoms customers, including Telenor, Vodafone, Axiata, and Ooredoo across 17 countries, processing data of more than 1 billion subscribers. The product portfolio including the mViva contextual campaign management solution, mViva loyalty management solution, mViva data monetisation platform, and mViva customer data platform, all aimed at driving underlying mobile subscriber engagement, retaining customers and generating incremental ARPU for telecom operator customers."

[gleach23] 25/1/2022 08:22

Yes rossco not much to chew on although it's fairly consistent with info provided in previous trading updates. However previous updates did often provide an accompanying contract win which I was hoping for. Not much growth in the numbers - need to start converting some of that pipeline in the much heralded mobile advertising space.

[rossco] 25/1/2022 07:43

Very little in the way of numbers this morning.

[gleach23] 24/1/2022 08:53

Expecting a year end trading update this week and been nibbling at this level.

Market seems not to trust PTRO but hoping the numbers do the talking.

[p1nkfish] 22/1/2022 12:24

ST very quiet on this. What's next?

[p1nkfish] 14/1/2022 07:21

Get through 37.5p and looks like could run towaards 42p?
About 20% run?

[bookbroker] 17/12/2021 13:03

Absolute shocker here, I still management are guilty of raising cash just to pay their wages, not for investing in the business, total set of bandits in charge here.

[bookbroker] 08/12/2021 15:56

A company that the market has a distrust off, offshore and out of touch with investors!