- Cellnet Group (CLT) receives verbal notification from Optus that it will not be renewing its mobile accessories supply agreement with the company
- CLT is awaiting further details from the telco, including transition arrangements and a termination date
- CEO Dave Clark says Cellnet will renew its focus on other channels and remains confident in its outlook for FY22
- Shares have dropped 14.1 per cent to 5.5 cents each at 2:48 pm AEST
Optus has pulled the plug on its mobile accessories supply agreement with Cellnet Group (CLT).
CLT advised the market today it had received verbal notification from the telco, which said it would not be renewing the current deal.
Following the news, Cellnet said further details of the split, including transition arrangements and the exact termination date, were yet to be provided by Optus.
CLT also revealed that ongoing business under the present agreement accounted for eight per cent of the company’s revenue in the 2021 financial year (FY21).
Further, it said prior to allocating operating expenses, business under the deal contributed roughly $1.8 million towards its net profit before tax in FY21.
CLT’s chief executive officer Dave Clark said the company was well equipped for change and remained confident in its outlook for the business in FY22.
“We plan to transition from Optus with a renewed focus on other channels, including telco franchise, CE retail, online and business-to-business channels, which will further be supported by our recent brand acquisitions,” he said.
“We intend to further mitigate impact through streamlining of our operations and reduced direct and associated costs to serve the Optus corporate-owned channel.”
Shares had dropped 14.1 per cent to 5.5 cents each at 2:48 pm AEST.