Coms plc has announced today that it has secured a significant contract to supply a provider with up to 50,000 mobile SIM cards through the Company’s newly built Mobile Network. Under the terms of the contract the SIM cards are expected to be rolled out over a 24 month period with the first order for 10,000 cards already received and due to be delivered by early 2014.
The customer estimates the contract will generate revenue to Coms of approximately GBP20 per user per month. In addition, Coms will supply the customer with other products and services, including VoIP telephony, lines and broadband and other data connectivity. These, in addition to inbound numbers and related services provide a true end-to-end solution for the customer’s end users.
The news has already had a significant impact on the share price of Coms, which is now up over 8% today already. Dave Breith took home the ‘best performing share of 2013′ recently and quipped as he collected his award that he would see everyone again next year to take home the prize again. It looks as though 2014 will get off to a good start and everyone is wondering whether Breith can beat his seven acquisitions (all in 2013) next year!
Dave Breith, CEO of Coms, stated: “Once the full roll out over 2 years of the SIM cards has been achieved, we estimate that the potential revenues from the supply of SIM cards only will be significant under the contract. The contract also provides Coms with further opportunities to upsell its other products and services, thereby providing significant additional income. The Company maintains that owning our own voice, data and mobile networks makes Coms’ service offering highly attractive. This new contract demonstrates our ability to derive significant shareholder value from our new mobile initiative.”