| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.50 | 341 |
Pelatro Plc is a London-based software company specializing in customer engagement and data monetization solutions for telecommunications providers. Founded in 2013, Pelatro offers its mViva suite, a comprehensive customer engagement hub that enables telecom operators to manage subscriber and retailer campaigns effectively. The mViva suite includes contextual campaign management, loyalty management, and a customer data platform, helping telecom companies enhance customer retention and monetize data insights. Pelatro serves emerging markets across the Caribbean, Central Asia, Eastern Europe, North Africa, South Asia, Southeast Asia, and Sub-Saharan Africa. Operating in the competitive Software - Application sector, Pelatro differentiates itself with tailored solutions for telecom operators in high-growth regions. Despite its niche focus, the company faces challenges from larger enterprise software providers and regional competitors. With a market capitalization of approximately £9.5 million, Pelatro remains a small-cap player in the global telecom software market.
Pelatro Plc presents a high-risk, high-reward investment opportunity due to its niche focus on telecom customer engagement software in emerging markets. The company reported a net loss of £14.37 million in FY 2022, with revenue of £5.38 million, indicating financial instability. However, its specialized mViva suite could offer growth potential if telecom operators in developing regions increase digital transformation spending. The negative beta (-0.034) suggests low correlation with broader markets, which may appeal to investors seeking diversification. Key risks include intense competition, reliance on emerging market demand, and cash burn, as evidenced by negative earnings and minimal operating cash flow (£1.175 million). Investors should monitor customer acquisition and revenue growth trends before considering a position.
Pelatro competes in the telecom software niche, focusing on customer engagement and data monetization for operators in emerging markets. Its competitive advantage lies in its specialized mViva suite, which is tailored for telecom-specific use cases such as loyalty management and contextual campaign automation. Unlike broader enterprise software providers, Pelatro’s deep industry expertise allows it to address unique pain points of telecom operators in high-growth regions. However, the company faces competition from both global players and regional software vendors. Larger competitors like Amdocs and CSG International offer more comprehensive telecom solutions but may lack Pelatro’s agility in customizing for emerging markets. Meanwhile, regional competitors in Africa and Asia often provide cheaper alternatives, albeit with less sophisticated features. Pelatro’s challenge is to scale its customer base while maintaining profitability, as its current financials show significant losses. The company’s ability to secure long-term contracts with telecom operators will be critical in differentiating itself from both global giants and local rivals.