The world has entered a new era of consuming media, education, music, video, and professional content. Indeed, the pandemic only accelerated this trend as evidenced by the unprecedented growth in streaming and subscription services.
The problem for publishers, however, is efficiently handling this vast quantity of digital content that is often created by thousands of external 3rd parties who each require payment and partnership management - in turn necessitating the deployment of sophisticated software in order to automate the complexity.
Enter Fadel Partners (FADL) , a leading IP management, brand compliance, and media content software provider, serving a host of blue chip clients such as Hasbro, Whirlpool, Marvel, L’Oreal, Sanofi, Philip Morris, Coca Cola, and Pearson. Today the company said it had won two new contracts in Europe and the US, worth a combined $1.7m.
The larger contract is a 3-year $1.5m deal with Sanoma, a major of European digital learning and teaching platform. The smaller is a $0.2m deal with one of the world's largest manufacturers of audio equipment covering FADL's Brand Vision Rights Cloud and Content Tracking solutions with potential for future upselling.
The Sanoma agreement was secured as part of a competitive tender process and involves rationalising existing disparate workflows across 7 subsidiaries while improving performance, reducing cost, increasing operational efficiency, and future-proofing their platforms in terms of UX, security, and scalability.
In terms of FY'24 numbers, house broker Cavendish reiterated its 260p/share target price this morning based on turnover rising to $16.3m (+12.6% LFL vs $14.5m LY) and $20.0m (22.4%) respectively over the next 2 years - correspondingly delivering gross margins of 67% and 70% whilst ending each period with net cash of $2.0m and $2.2m.
CEO Tarek Fadel commenting: "We are thrilled that these contract wins that highlight the value of our core cloud-based IPM Suite, alongside the momentum in our Brand Vision SaaS-based offerings, validating our R&D strategy and helping underpin our financial ambitions."
"IPM Suite is tailored to meet the complex needs of modern media and publishing groups and we look forward to supporting Sanoma in their digitization journey. The Brand Vision partnership with one of the world's most innovative audio companies has highlighted the shorter sales cycle, faster implementation and compelling pay-back for major brands by managing and tracking their marketing content and usage rights with our software."
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