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Seamless Distribution Systems AB (publ) ("SDS") has signed an agreement for an upgrade to the ERS 5 platform with an existing telecom customer, a leading mobile operator in the Middle East. The product license is worth SEK 4 million. The agreement also includes a five-year support agreement of SEK 14 million, which gives a total contract value of SEK 18 million.
After an extensive restructuring in 2025, the company is now covering its total operating costs through recurring revenue from customer support. This means that all new product agreements during the year will have a direct positive effect on the company's earnings and cash flow. Revenues from product implementation will gradually be recognized as the delivery progresses and are expected to be completed in 2026. With this order, SDS has secured SEK 18-20 million in profit before tax for 2026, corresponding to approximately 40 percent of the full-year forecast of SEK 45-55 million.
The delivery includes an upgrade to ERS 5, SDS's new version of the company's platform for sales and distribution of digital products. This is the third ERS 5 upgrade order that the company has won in the first quarter, reflecting the increasing demand among SDS' existing customer base to migrate to the company's latest platform generation. With a global installed base of telecom operators using previous generations of SDS's platform, SDS is positioned for additional product licenses and services from the company's existing customer base. Several operators are currently evaluating similar upgrades.
"Winning another upgrade order shows the strong interest in ERS 5 and the opportunities that exist with our existing customer base. The order also confirms another clear step towards our goal of delivering a strong earnings improvement in 2026. We have now secured SEK 18-20 million in profit before tax for 2026 and the forecast of SEK 45-55 million for the full year 2026 remains." comments Martin Schedin, CEO
For more information, please contact:
Jens Ålander
CFO
+46 73 095 8269
About SDS
SDS is a Swedish international software company specializing in mobile payment services for mobile operators, distributors, retailers, and consumers. SDS ensures that telecom operators can sell voice time, data, and ancillary services, while SDS products and services handle up to 90% of telecom operators' sales. Today, SDS has implemented solutions in Fintech, advanced analytics, and retail value management, and these products have turned into so-called SaaS solutions for the telecom operator.
SDS has approximately 185 employees in Sweden, South Africa, Algeria, Ghana, Nigeria, the United Arab Emirates, Pakistan and India. SDS handles more than 15 billion transactions worth over $14 billion annually. Through over 3 million active digital product retailers per month, more than 1,100 million consumers are served indirectly globally.
SDS's share is listed on Nordic SME on the Nordic Growth Market.
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