Netmore Group: Major deal with a Swedish property developer

Research Note

2022-10-03

10:32

Redeye is encouraged by Netmore’s agreement with a Swedish property developer, potentially worth SEK65m over the coming years. Last week, the company received a breakthrough order for its IoT offering. Netmore shows strength in both the IoT and property segments, which we think is very positive.

FG

Forbes Goldman

Netmore and a Swedish property developer entered a three-year framework agreement that gives Netmore the exclusive right to deliver communication services (broadband and TV) to properties included in the portfolio. This means an estimated 4,000 households and some commercial premises. The framework agreement’s potential value for these services is estimated at ~SEK65m, but this hinges on the developer’s expansion speed and Netmore’s (and its partners’) penetration rate at each property.

On 28 September, Netmore received a breakthrough order for its IoT offering, potentially worth SEK583m over the coming years. Today, it received another very significant agreement for its property offering. Good traction in the IoT and property segments creates added confidence in Netmore’s technology, market position, and sales growth outlook (we forecast a 2021–2025 CAGR of >60%). At this time, we reiterate our estimates and fair value range.

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