PTRO.L Share News (PTRO)

(Sharecast News) - Software company Pelatro said on Monday that its mViva platform had been selected by an Asian telecommunications company for the management of its campaign operations.
Pelatro said that contract was recurring in nature and included a variety of services and the product itself.

The AIM-listed firm said revenues from the three-year contract was expected to bring in $1.0-1.8m, depending on the client's take-up of additional services currently under discussion.

While Pelatro said it will benefit from "the smoother and higher quality earnings" from the contract, the company said it was "unlikely" that any further contracts won this year would result in "significant additional revenue" being recognised.

Pelatro, which has been focused on transitioning its revenue model from one-time license-based income to recurring revenue contracts, highlighted that recurring revenues had increased from $1.5m as of January 2019 to $5.2m at the end of October and was anticipated to continue to grow and record a material increase by the end of 2020.

In terms of the Covid-19 pandemic, Pelatro added that the coronavirus pandemic had made only a "relatively limited impact" on trading.

However, Pelatro noted that over the past two months, Covid-19 had affected employees and immediate relatives, leading to slower than scheduled implementation of projects.

"As this revenue is recognised only on completion of the relevant project, as a result, certain revenue which was otherwise visible in 2020 will be deferred to the first half of 2021," said Pelatro.

As of 1340 GMT, Pelatro shares were down 5.73% at 37.0p.