Mobecom Limited (ASX: MBM) has signed a Master Services Agreement (MSA) with Spur Corporation to be the exclusive provider of customer loyalty technology solutions for all Spur franchise brands.
The 3-year Master Services Agreement (MSA) with Spur Corporation positions Mobecom as the exclusive provider of mobile customer loyalty products and services for the entire Spur brand portfolio, currently represented by over 590 franchise outlets in South Africa, Australia, Mauritius and 12 African countries. In addition, all remaining Spur brands not already contracted with Mobecom are expected to sign individual contracts for Mobecom’s mobile customer loyalty solution.
Mobecom currently provides services to two of the seven group brands and management anticipates the remaining Spur brands will follow suit, with two new brands expected to contract with Mobecom early in CY 2018, increasing Mobecom contractual recurring revenues by 15% in 2018 and presenting an additional marginal revenue opportunity from ordering of 4.5% from all loyalty member orders across the group.
Spur Steak Ranches brand owns the 7th largest loyalty program in South Africa with an estimated 1.95 million existing loyalty scheme members, representing a large transaction-based revenue opportunity on ordering for Mobecom. Together with the existing Panarottis loyalty database already managed by Mobecom, this brings the total addressable ordering customer base to over 2 million.
Mobecom Chief Executive Officer, Neil Joseph, said the contract represents one of several material contracts at an advanced stage of negotiation, as highlighted in the company’s relisting announcement on 17 October 2017.
“We’re really pleased our longstanding relationship with Spur Corporation has resulted in the contract now signed covering the entire Spur Group.”
“This agreement with Spur provides strong commercial validation of our offering by a leading South African international restaurant franchisor, providing us with the opportunity to grow this contract materially and signing the remaining Spur brands to use Mobecom’s customer loyalty technology.”
“This is a huge opportunity for Mobecom to significantly grow both recurring and transaction-based revenues well into future periods, as Spur continues to expand its global footprint.”