TerraNet

OMX: TERRNT

SEK108.9m market cap

SEK5.2 last close

TerraNet is an early commercialisation-stage software company with expertise in peer-to-peer communications. Its products encompass chip integration software, IoT, including connected cars and headsets, multimedia streaming, and GriDD, an innovative data capacity trading product.

Investment summary

TerraNet (TN) has an array of promising technologies based on offline mobile communications which have attracted a range of blue-chip partners. Adoption of its IP is progressing slower than hoped and trade tensions between China and the US, as well as the potential return of Google to China, could affect future demand for TN’s proximal connectivity software. New CEO Ola Samuelsson has responded with a 40% cost base reduction which should help conserve net cash reserves of SEK38.1m at the end H118. Successful execution across any one of the company’s applications could drive strong growth, but as TN’s products are still very early stage, investment is high risk.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2016A 2.7 (25.0) (37.6) (333.71) N/A N/A
2017A 5.6 (57.1) (58.7) (286.35) N/A N/A
2018E 21.7 (68.2) (72.2) (300.55) N/A N/A
2019E 74.8 (32.1) (37.9) (157.69) N/A N/A
Last updated on 14/01/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (SEKm) 7.2
Forecast gearing ratio (%) 89
Price performance
%
1m
3m
12m
Actual 57.6 (19.8) (64.0)
Relative* 57.6 (16.2) (60.9)
52-week high/low SEK16.6/SEK3.0
*% relative to local index
Key management
Pär-Olof Johannesson CEO