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Manalto further expands exposure in social media services

Manalto has signed on its third European distribution channel this month as the company's Sóshlr social media management product as the company positions itself to take advantage of upward trends in SMEs moving to cloud based business applications.
Manalto further expands exposure in social media services

Manalto (ASX:MTL) continues to expand exposure of its Sóshlr social media management product to European markets as a deal with Ireland's largest domain registrar and hosting company begins commercialisation of technology among its 120,000 customers.

The agreement with Blacknight Internet Solutions represents the first time a hosting company has commercialised Sóshlr and follows quickly on commercialisation progress via two European resellers.

Earlier this month, the company signed on to commercialise Sóshlr with Luxembourg company LuxCloud (which has more than 350 international partners) and Netherlands-based TopCloud, a company that boasts a partner base of more than 300 value-added resellers, IT distributors, hosting companies and telecommunications companies.

A further six hosting companies are trialling Sóshlr and are in negotiation with Manalto.

These six hosting companies represent an addressable market of up to 5 million small to medium enterprises (SME).

It is estimated that with an initial addressable market of 6 million SMEs, Sóshlr could generate license income for Manalto of about US$57.6 million per annum.

Last week, Manalto signed a new customer with retail outlets across the U.S. for its Enterprise social media management solution.

The agreement with fast-growing food company The Spice & Tea Exchange will make use of the Manalto solution for up to 50 licenses.


About Sóshlr

Targeted at SMEs, Sóshlr delivers time savings and single visibility of social media activity across Facebook, Twitter, LinkedIn and Instagram.

The purpose-built product is packaged and provisioned for resellers such as service providers, telecommunications and hosting companies, with upsell paths in a range of A$36 to $3,000 per annum.

In a macro sense, its development is supported by trends in the global hosting industry which signal a growing imperative to add revenue streams with cloud-based business applications.


Analysis

The rapid pace of Manalto's commercialisation deals suggests that there is substantial market appetite for the company's services, especially in the social media management space that Sóshlr addresses.

This performance belies global trends in social network ad spending (expected to value US$36 billion by 2017) and consolidates the company's presence in Europe as a new Enterprise customer is signed in the U.S.

Manalto’s ability to anticipate the boom in social media spending by signing on with an expanding base of international commercial connections has helped underpin important investor support, as evidenced by a strong A$3.1 million capital raising last month.

Future price catalysts for Manalto stock may materialise as commercialisation is achieved with other distributors and an ongoing share purchase plan unfolds.


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Manalto Timeline

Newswire
February 02 2017

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