Shares in London-listed telco play Mobile Tornado [LON:MBT] were up over 131% on the open following news that it has secured a contract via a regional partner to supply cutting edge technologies for a “prominent mobile network operator” in the Middle East region.
The company in question – not disclosed by Mobile Tornado – serves over 50m active users, both business and individuals, across the Middle East and Africa.
“We identified the Middle East as a crucial region for business development, and this new contract through our local partner provides us with a platform for expansion across multiple territories. Winning this deal against global OEMs is a testament to the quality of our solutions,” said Jeremy Fenn, Executive Chair at Mobile Tornado.
Who is Mobile Tornado?
AIM-listed Mobile Tornado is a provider of critical communications and workforce management solutions for tier 1 mobile network operators and solution providers. Their range of solutions includes advanced business intelligence, AI, and workforce management, aimed at enhancing the productivity and performance of businesses utilising state-of-the-art applications.
The company offers seamless switching between 2G, 3G, 4G, and 5G mobile and WiFi networks, available through ruggedised handsets and smartphone applications for Android and iOS. These cost-effective technologies are deployed in over 30 countries worldwide, serving mobile operators, government agencies, and private enterprises.
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After a competitive procurement process involving globally recognised telecoms companies, Mobile Tornado’s technology was selected to deliver PTToC, lone worker and live video communications services. Mobile Tornado’s technology was chosen due to its lower latency, lower data usage and seamless compatibility across connectivity generations from 2G to 5G and WiFi.
The company’s solutions are provided to customers through a user-friendly app, downloadable from the Apple App Store or Google Play Store.
Push-to-Talk market is gathering momentum
Fenn said the Push-to-Talk over Cellular market is continuing to gather momentum, thanks to advances in network infrastructure and widespread connectivity, making it a reliable and technically robust solution for enterprises seeking real-time communication support for their field workers.
“This contract, in a key target market, is a testament to the changes we made early last year and the Board looks forward to increasing sales momentum as 2024 develops,” Fenn said.
Mobile Tornado stock up over 130%
The Mobile Tornado share price soared on the news and they are now trading at their highest level since late 2021. Although the stock had rallied towards the end of 2022, the share price had been drifting lower since there. Investors piled into the stock with enthusiasm, although news of the deal is still light in detail in terms of scope and potential revenue for Mobile Tornado.
In its full year trading update, subject to completion of the audit, the company indicated revenues for the six months to 31 December 2023 were approximately £1.04m with an approximate EBITDA loss of £0.12m. As a result, based on unaudited management accounts and subject to audit, full year revenues for 2023 are expected to be approximately £2.25m with an EBITDA loss of approximately £0.26m.
Mobile Tornado reported that recurring revenues remained stable at approximately £1.96m (2022: £2.03m). Non-recurring revenues were approximately £0.29m compared to £0.22m in 2022. The company’s operating expenses remained stable at £2.41m in 2023 compared to £2.46m in 2022.
