PTRO.L Regulatory News (PTRO)

Pelatro Plc

("Pelatro", the "Company" or the "Group")

Contract Win

Pelatro cross sells mViva Data Monetization Platform to Tele2, Kazakhstan

Pelatro Plc (AIM: PTRO), the global Multichannel Marketing Hub software specialist, is delighted to announce that it has been chosen by Tele2, Kazakhstan, an existing customer of the Group, to install its new product mViva Data Monetization Platform (the "DMP"). This is a revenue share contract for a five-year period which is expected to contribute c.US$500,000 to Pelatro's revenue in the first full year of operation.

Highlights

· Inaugural mViva Data Monetization Platform contract

o Establishing a new revenue stream for the Company

o Providing further evidence of cross-selling capabilities

o Strengthening relationship with existing client - Tele2

· Contract expected to be worth US$500,000 in first full year of operation

o Significant scope to add incremental value over five-year period

o Providing further visibility for current period and beyond

· Potential to win a share of the mobile advertising market - estimated to be c. US$1.8bn in 2020

Commenting on this contract win, Subash Menon, Managing Director & CEO of Pelatro Plc said:

"This contract win with Tele2 is a very important step for Pelatro. Our ability to cross sell our mViva Data Monetization Platform into our existing customer base will enable us to further cement existing customer relationships and deepen the penetration within them. The DMP presents a large opportunity for Pelatro while broadening our overall offering. We are confident of building a large ecosystem of B2C companies with our Telco customers at the centre, on the basis of the large customer base that we can present to these B2C companies to target intelligently and efficiently. This we expect will result in our Telco customers winning a portion of the lucrative mobile advertising market, leading to Pelatro sharing in that revenue."

Pelatro's new Data Monetization Platform

The DMP utilises Pelatro's existing mViva platform which collects data on Telco subscribers on a real time basis to facilitate mobile advertising. Using this analysis, B2C companies can segment the subscribers and target individuals with personalised mobile advertising. Telcos have identified the need for data monetization with B2C companies (i.e. banks, insurance companies, retailers etc.), without compromising or infringing data privacy rules including GDPR. The DMP builds on any efficient Contextual Marketing Solution, like the one from Pelatro.

New market opportunity for Tele2 and Pelatro

Data Monetization is expected to be the next great opportunity for Telcos. In a report titled "Market Trends: CSPs Must Transform Their Advertising Model", Gartner recommends that Telcos should:

Ø Formulate and prioritize investments to develop a position in data monetization in the advertising market before other advertising strategies. Focus should be on maximizing Communication Service Provider ("CSP") data usage and availability, rather than on generating and selling ad inventory.

Ø Develop a trusted data provider position with brands, agencies and the wider ecosystem on top of the media or technology activities already developed. As a trusted source of data, CSPs will add transparency by reducing fraud and waste.

Telcos, that have lost out to large online players like Amazon and Facebook to sell non-Telco products to billions of customers, see data monetization as a brand new opportunity to re-engage their customer base by enabling a variety of B2C companies to target the Telco's customers in a contextual, relevant, real time and personalised manner. The large amount of subscriber data available to the Telcos, places them in a very unique position to present a potentially large base of customers to the B2C companies to target. The Telcos can become the conduit for promotion and targeted mobile advertising of a variety of non-telco products to billions of customers.

Pelatro has a large proportion of the populations of certain countries covered by its mViva contextual marketing platform and that forms a strong foundation for it to create an ecosystem of Telcos and several B2C companies to monetise. For example, in Malaysia, Pelatro mViva Contextual Marketing Solution is handling the data of 75% of the population. In Bangladesh, Sri Lanka and Philippines it is 73%, 68% and 62% respectively. With the expected addition of several Telco customers in the coming years, Pelatro's mViva Contextual Marketing Solution will be handling such large portions in various countries thereby making data monetization a very attractive proposition for those Telco customers. The market opportunity for the mViva Data Monetization Platform will progress in tandem with the growth of the Contextual Marketing Solution business of the Company, as the latter is the foundation for the former.

Market Potential

The biggest opportunity presented by Pelatro's DMP is to win a share of the mobile advertising market that is rapidly growing. Per a Statista 2019 report, the global market for mobile advertising was US$138bn in 2018 and is growing at a CAGR of 15%. It is estimated to reach US$182bn in 2020. Assuming that the Telcos are able to capture 5% of this market using data monetization, it would mean a market size of US$9bn for Telcos. As this market operates largely on revenue share model, the market for Pelatro's DMP itself is estimated to be about US$1.8bn, assuming revenue sharing of 20%. This is the potential market that Pelatro has entered with the launch of its DMP and this contract win.

For further information contact:

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

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 applications, and is well positioned in the Multichannel Marketing Hub space (MMH) - this is technology that orchestrates a customer's communications and offers to customer segments across multiple channels to include websites, social media, apps, SMS, USSD and others.

For more information about Pelatro, visit www.pelatro.com