logo-loader

Synchronica signs expansion contract with LatAm mobile operator

Published: 16:04 09 May 2011 BST

no_picture_pai

 

Mobile email and instant messaging specialist Synchronica (LON:SYNC, CVE:SYN) said it has signed an expansion contract with a tier-one multinational mobile operator group in Latin America.

The operator group has already rolled out Synchronica's Instant Messaging product. The expanded contract adds the group’s push e-mail and synchronisation technology.
 
Synchronica gained the original contract with the acquisition of Colibria's IMPS Instant Messaging business in April 2010. It provides a strong and growing recurring revenue stream.

The extension means the group will receive additional recurring revenue from a monthly fee per active e-mail user.
Push e-mail and synchronization services will be deployed across all subsidiaries of the operator group and will be hosted and maintained by Synchronica.

According to Synchronica, e-mail and IM services are gaining popularity in the Latin American region. It cited a recent study conducted by the online marketing research company comScore as saying IM records a 68 percent penetration rate in the region compared with the global average of 35 percent; while e-mail records a 76 percent penetration versus 63 percent globally.

Chief executive Carsten Brinkschulte said: "This contract expansion illustrates perfectly how Synchronica can provide complementary services to existing customers and in turn benefit from increased commercial value. We are confident that the addition of push e-mail and synchronization to the group's messaging portfolio will help to increase overall revenues while also acting as a strong churn inhibitor." 

In mid-March, Synchronica reported a strong start to the new financial year as annual losses narrowed markedly.

The shortfall on an EBITDA basis fell US$800,000 from US$2.9 million previously, while revenues grew by US$5 million in 2010 to US$10.9 million. In the fourth quarter the company posted operating profits of US$2 million.

The company’s customer base, meanwhile, has swelled to 83 mobile phone operators and eight device manufacturers from 21 operators and one handset maker in the space of 12 months.

Synchronica is targeting emerging markets for mobile telephony such as Latin America where the mobile phone is the first and sometimes only means of access to the internet and email for tens of millions of people. The US$20 throwaway phone is portable and more to the point far cheaper than desktop computers and laptops.

The company’s flagship product, Mobile Gateway, turns emails into SMS format that can be read on any phone from high-end touch-screens right down to throwaways.

The acquisition of Canada’s iseemedia last year gives Synchronica access to additional technology that streams attachments to mobiles.

Mobile Gateway is cheap and easy to install - and tailor-made for the emerging markets.

 

FTSE rises ahead of Easter weekend, JD Sport gains on upbeat outlook -...

The FTSE 100 gained on the final morning of this shortened Easter trading week. Festive cheer was limited though, as Thames Water confirmed shareholders would not provide it with a £500 million rescue package, prompting speculation over the London supplier’s future. On a more positive...

37 minutes ago