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Tapping into Software-as-a-Service

A company that makes its money by providing telecom operators with precision marketing software has delivered a step change in revenue and profitability
Tapping into Software-as-a-Service
  • 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 rose more than sixfold to $2.8mn (before accounting for non-cash depreciation, share-based payments and amortisation charges) as the operational leverage of the business kicked in on an increasing recurring revenue stream.

Pelatro uses 'big data' analytics (artificial intelligence, machine learning and other analytical techniques) to reveal patterns, trends, associations and behavioural traits of telecom subscribers. These insights enable mobile telecom operators to monetise their data, boost average revenue per user and their share of subscriber spend, while also reducing churn rates. It’s proving popular. The group added three new clients to its customer base last year and now processes data of over 1bn telecom subscribers every day.

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