Greenergy announces deal to run lead generation for Dito
The team-up was committed to paper in the form of a memorandum of agreement (MOA) between the Antonio Tiu-led Greenergy [GREEN 2.58 12.24%] and the Dennis Uy-led Dito Telecommunity [DITO 7.44 6.18%]; the MOA has GREEN providing “commission-based lead generation services” to DITO, and in return, DITO will pay a commission to GREEN for each successful DITO mobile subscriber signup.
GREEN agrees to “lead the public to DITO-related products and services”, and to do this, GREEN has committed to use “its own system or the system of any third-party affiliates”. Then, the GREEN press release quickly runs through a couple of other bullets that speak very generally about collaboration “in other areas” to pump DITO’s subs and promote GREEN’s “digital initiatives”.
As you might remember, DITO has been trying its hardest to make its extremely modest subscriber count seem like a victory, while also trying to frame its slow and clumsy country-wide rollout as some kind of “sustainable” on-going victory. The market remembers, as DITO’s stock price has crashed 59% from it’s peak of around P18.12 in February just after it passed the last technical audit; Friday’s P7.44 close is just the most recent low in the consistent, downward trend that the stock has traced, especially since early March.
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GREEN is down about 44% over the same timeframe, and especially since the start of June. If we zoom out, it’s hard to find anything technical to fault about the team-up for either company; DITO needs subs and this is a really low-risk method of trading a slice of profit in exchange for another company’s userbase, and GREEN needs... money?
The deal is interesting to GREEN if this deal gives can forge a strong alliance with a committed telecom provider in its geographical regions of focus, that GREEN can use to push all of its connectivity-related projects as part of Tiu’s “#GREEN2030 vision” (Farmer card, transpo payment card, etc). For DITO, though, the motivation for the agreement can be summed up by this line of the press release: “The collaboration between [GREEN] and DITO will pave the way for the conversion of [GREEN]’s existing clients, partners, and affiliates to become DITO mobile subscribers.”
Basically, DITO purchased GREEN’s userbase and GREEN’s cooperation in converting its current users into DITO mobile subscribers.
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