Toople wins data connectivity contract with TOCA
Toople () said it has won a new contract to provide next generation broadband solutions to TOCA, the global sports and entertainment company located at the O2 venue in London.
The telecom service provider will provide ‘critical high-speed secure data connectivity’ as TOCA rolls out its first immersive, soccer-themed entertainment venue, TOCA Social.
The TOCA Social venue is a new entertainment concept, aimed at transforming how visitors meet and play and it is built around accessible and interactive football-based games.
The 30,000-square-foot venue, which will be built at the O2, will give players of all kinds a place to come together, with live events, gaming experiences and food and beverage.
Founded by former Fulham and Leeds United midfielder Eddie Lewis, the venue is set to open this summer and the O2 will be the flagship site for the competitive socialising brand.
TOCA Social describes itself as 'the world's first interactive football entertainment concept' that features 'inclusive gaming experiences' leveraging proprietary Touch Trainer and AI-enabled computer vision technologies.
Commenting on the contract win, Andy Hollingworth, Chief Executive at Toople, said that, "We won a number of notable new contracts and contract extensions in late 2020 and I am particularly pleased that we have carried that momentum forward into 2021.
TOCA is creating an exciting new sports entertainment concept at the O2 and we are very honoured to be chosen to provide High Speed secure data connectivity to them as they roll-out their offering. This is a great endorsement for our brand and service offering."
TOCA is exactly the type of client TOOPLE needs to work with to raise its profile within the emerging immersive sports / entertainment sector, where their very business model depends on superfast and highly reliable connectivity. Investors will be gaining increasing confidence in the future for TOOP as both emerging companies such as TOCA provide exciting opportunities for the Group while its outlook for FY21 is largely underpinned by HM Government’s commitment to the rolling out of fibre telecommunication infrastructure to replace copper and the necessary and ultimately unavoidable upgrade of the country’s network from 4G to 5G. Shares in Toople have increased by nearly 30% since the beginning of September 2020 open up 5% following the contract win announcement at 0.0975p.
The company completed its “transformational” acquisition of DMS Holdings (DMSL), a firm which provides unified communication services in the UK, back in February 2020. Toople believes DMSL will accelerate its own positive cash generation and drive profitability.
The macro drivers for TOOPLE indicate structural growth opportunities across the SME Telecom markets. The group’s contract wins, and renewals point towards several compelling value propositions from the Company across broadband, mobile, and fixed line services.
Significant Market Opportunity
In a recent trading update, Toople told investors that the macro drivers expected to precipitate substantial growth for the Group remain in place, particularly the UK government’s commitment to rolling out fibre telecommunication infrastructure to replace copper.
Specifically, the macro drivers which are expected to precipitate substantial growth for the Group are said to remain in place, namely HM Government's commitment to the rolling out of fibre telecommunication infrastructure to replace the legacy copper infrastructure by 2025 and ‘the necessary and ultimately unavoidable upgrade’ of the country's network from 4G to 5G.
This forms part of the country’s efforts to upgrade its telecoms system to full fibre lines to deliver “gigabit speeds” following concerns that the UK has fallen behind other countries. The UK government aims for full-fibre networks to cover the entire country by 2033.
Openreach, which controls the UK’s telecoms infrastructure, is building full-fibre to over 4.5 million premises by the end of March 2021 and more than 20 million in the late 2020's.
Andy Hollingworth, CEO of Toople said this goal coupled with the impact of COVID-19 is driving the need for better remote connectivity and unified communications solutions.
“As full-fibre availability in the UK grows exponentially, our suite of services supports the transition to a full-fibre future and as the availability of fibre increases, so too will the number of new and expanded contracts for Toople,” he commented.
He highlighted the importance of this accessibility in a “new reality where employees can work from anywhere but must remain seamlessly connected to their colleagues and clients.” And added “In light of societal changes to working practices, and technical upgrades to the UK's communications infrastructure, the long-term outlook for Toople is bright."
Strong Balance Sheet
Toople’s balance sheet will provide management greater flexibility to target additional organic growth opportunities across their target markets, which should lead to a positive outturn for FY20 and accelerate the Company’s path to profitability and positive cash flow in FY21.
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