Pelatro PLC Large Asian Telco Group Enters Framework Agreement (2352X)

TIDMPTRO

RNS Number : 2352X

Pelatro PLC

04 May 2021

04 May 2021

Pelatro Plc

("Pelatro" or the "Group")

Large Asian Telco Group Enters into Framework Agreement

Pelatro Plc (AIM: PTRO), the telecom Customer Engagement Hub software specialist, is pleased to announce that a large Asian telco group with about 230 million subscribers, with operating companies across multiple countries and an existing customer of Pelatro, has entered into a Framework Agreement (FWA) with Pelatro for three years. Under this group purchasing arrangement, the operating companies in the various jurisdictions can be serviced by Pelatro under one agreement and be confident of receiving the same high quality of offering and support across the group, as well as new products and services at pre-agreed pricing. At the same time, it will more deeply embed Pelatro into their operations and help to ensure an even closer working relationship with them. The key aspects of the FWA are:

Ø The current engagement with the operating companies of the telco group includes annual maintenance support and ad hoc change requests. These have been brought under the FWA with a base level of man days for change requests forming part of the contract every year thereby making those change requests recurring in nature, along with an annual maintenance fee.

Ø As per the FWA, Pelatro will extend level two support, which precedes the regular annual maintenance support, resulting in immediate additional recurring revenue for the Group.

Ø The FWA further includes all other products and services of Pelatro together with a price list for those. All the operating companies now have the option to procure all of these products and services from Pelatro without a formal RFP process or price negotiation.

Ø While we expect the incremental revenue impact during the current year to be about $100,000, it will be about $500,000 per year from 2022 onwards.

Ø Pelatro will be paid a fixed amount quarterly for all the base products and services making this a recurring revenue contract.

Commenting on this agreement, Subash Menon, Managing Director and CEO said, "With this Framework Agreement, we are further cementing our relationship with this telco group for the next three years. 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."

For further information contact:

 
 Pelatro Plc 
 Subash Menon, Managing Director                      c/o Cenkos 
 Nic Hellyer, Finance Director 
 
 Cenkos Securities plc (Nominated Adviser 
  and Broker)                                [phone] 
 Stephen Keys / Mark Connelly (Corporate 
  Finance) 
 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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May 04, 2021 02:00 ET (06:00 GMT)