If what you are saying about FRE rings true regarding revenue from Tesco subscribers then FRE will get income. If you could calculate this and do some believable forecasts then I agree that you would be able to calculate the likely SP.
However, I have not found any details to confirm this future income stream to FRE. I think if FRE were looking forward to some income then they would surely announce the details.
Based on my reading of their previous reports and releases, I can not see any mention of an income stream for FRE from Tesco subscribers beyond the up front licensing fee that Tesco paid FRE sometime in FY08.
Unless there is some additional information from FRE to the contrary it would appear from previous FRE announcements regarding Tesco that FRE income is limited to just the upfront payment by Tesco to use the license to sell FRE product. FRE received that payment in full from Tesco in FY08.
For reference, see:
From the recent FY08 report. “The decline in revenue this quarter is due to the completion of payment on license fees relating to the development of our converged mobile technology. The development phase is now complete and full customer rollout in the UK is imminent, which is very exciting for Freshtel.”
Exciting, maybe, but profitable for FRE?
And from an earlier report: 28 November 2007 - Freshtel Holdings advised that it is entering the final stages of commercialisation of its unique converged mobile technology, announcing today that customers will be able to make and receive calls over the internet using their mobile handset and a WiFi hotspot as early as next year. Freshtel has entered into a financial agreement with Tesco to fine tune the product for the UK market where Freshtel will be paid an upfront licence fee giving Tesco the rights to sell the product.
MNF Price at posting:
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