Route Mobile soars 15%, hits 29-month high as Microsoft, Proximus sign pact

Microsoft and Proximus Group have sign a new strategic partnership for collaboration on digital communications and cloud

Route Mobile share price: Shares of Route Mobile hit a fresh 52-week high of Rs 1,896.95, soaring 15 per cent on the BSE in Thursday's intraday trade, after Microsoft and Proximus Group signed a strategic partnership for collaboration on digital communications and cloud.

Proximus is the holding company of Proximus Opal S.A./ N.V., the holding company of Route Mobile.

At 01:09 PM, Route Mobile was trading 14 per cent higher at Rs 1,877.90 as compared to 0.60 per cent rise in the BSE Sensex. Average trading volume on the counter jumped over five-fold today with 4.1 million shares, together, changing hands on the NSE and BSE. In the past one week, the stock has rallied 25 per cent. It is trading at its highest level since January 2022.

 

The newly formed strategic partnership between Microsoft and Proximus will allow both the parties to leverage their respective expertise and product leadership, accelerated by the power and potential of AI-applications and solutions.

"On June 27, Microsoft and Proximus Group formally signed a five-year strategic partnership, allowing both the companies to strengthen their digital lead and accelerate their innovative offerings to business and residential customers in Belgium and abroad," Proximus said in a press release.

Microsoft will strengthen its use of the best-in-class products of Proximus' international affiliates BICS, Telesign and Route Mobile, while Proximus will benefit from Microsoft's Azure Cloud, leveraging all innovative AI and Data evolutions.

"This new strategic partnership with Microsoft, which will open up new frontiers in communication services, shows how Proximus Group is on track to further redefine customer experiences in Belgium and abroad thanks to the combined efforts of our international affiliates BICS, Telesign and Route Mobile," Guillaume Boutin, CEO of Proximus, said.

Previously, on June 24, Route Mobile announced that the company has extended its partnership with messaging app WhatsApp to enable ticketing service at Nagpur, Pune, and Hyderabad metro.

In an exchange filing, Route Mobile Limited (Route Mobile) said it has partnered with Billeasy E Solutions Private Limited, and enabled WhatsApp-based ticket booking for Pune, Hyderabad, and Nagpur metros in addition to Delhi.

Route Mobile is a cloud communications platform service provider catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetisation. RML has a diverse enterprise client base across various industries, including social media companies, banks and financial institutions, e-commerce entities, and travel aggregators.

Analysts at JM Financial Institutional Securities see several tailwinds for Route's revenue growth in FY25 such as incremental revenue accrual from the VI firewall deal, recently announced deal wins, and synergies between Telesign and Route Mobile.

“However, in the absence of concrete guidance from the management and multiple one-offs in recent quarters, we only partially bake-in these developments in our model, while noting that actual delivery could lead to sharp upgrades in our estimates,” the brokerage firm said in the Q4 result update. The stock, however, is trading above its target price of Rs 1,820 per share.