Tipped by Simon Thompson29 Mar 2019 10:16
of the IC - here's a key extract:
"Capitalising on data monetisation
Another key driver of future growth is Pelatro’s inaugural entry into the data monetisation market, having last week announced a five-year revenue share contract with Tele2, Kazakhstan, worth $500,000 in the first year alone. There is a real opportunity to capitalise in this area. That’s because telcos have lost out to large online players such as Amazon and Facebook when it comes to selling non-telco products to billions of customers. As a result, they now see data monetisation as a brand opportunity to re-engage their customer base by enabling a variety of B2C companies to target their customers in a contextual, relevant, real-time and personalised manner.
The large amount of subscriber data available to telcos places them in a unique position to present a potentially large base of their customers to the B2C companies such as banks and insurers, thus making them a conduit for promotion and targeted mobile advertising. To put the data monetisation platform targeted by Pelatro into context, it’s potentially worth $1.8bn on a revenue share basis of a total mobile advertising market that is predicted to be worth $182bn in 2020.
So, with the directors comfortable with analyst expectations that 2019 will be another year of robust profit growth, the bid pipeline strong, and the balance sheet in a net cash position, I reiterate my positive view when I suggested buying the shares last month, at 80p ('Pelatro: Big data, big profits', Alpha Report, 4 Feb 2019), and my 120p target price. Strong buy."
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