Avtech has announced a three-year extension to its agreement with Wizz Air, significantly expanding the scope of the original contract signed in late 2023. The initial agreement was limited to Wizz Air’s UK division, covering an estimated 18 aircraft. The new contract now encompasses the airline's entire fleet of ~237 aircraft. However, the services provided remain contained to its Aventus and Sigma products. The annual order value is estimated at SEK4.2m-5.8m, a considerable increase from the ~SEK0.5m previously estimated for the UK-only deal. However, the per aircraft revenue is slightly lower at SEK0.21k per year versus the previous SEK0.25k per year. Based on the midpoint of the new range, Redeye calculates the incremental annual revenue to be SEK4.5m. Redeye expect to raise its estimates to incorporate the new agreement subsequently Avtech's Q2 report due on 22 August. The fair value range is expected to be relatively unchanged.
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