Tecnotree wins a new customer in Nigeria

Translation: Original comment published in Finnish on 9/21/2023 at 7:03 am EEST.

Under the contract announced yesterday by Tecnotree, the company will supply Nigerian virtual network operator Bricklinks Africa PLC with its traditional BSS products (Switch), as well as its digital wallet solution (DiWa) and digital marketplace platform Moments. The press release did not mention the value of the order, but we do not consider it to be particularly large as it was announced through a press release. The order now does not cause estimate revisions but contributes to the growth outlook that we project for Tecnotree in the coming years.

The exact structure of the order was not disclosed, but typically for the company's license-based orders (most of the company's BSS products), about half consists of a license (payable immediately) and delivery (payable typically within 12 months). In contrast, DiWa and Moments that will be provided under the contract are mainly based on transaction-based recurring revenue. Tecnotree has commented that it will continue to focus on increasing recurring revenue streams (ARR) and we consider the announced transaction to be positive for the company in this respect. The successes in the sales of Moments and DiWa are also encouraging, as these will be important strategic growth drivers for the company in the coming years.