Pre-close trading update
Velti PLC
14 January 2008
For Immediate Release Monday, 14 January 2008
Velti plc
Trading Update
LONDON - Velti plc ('Velti' or 'the Company'), a provider of software platforms,
applications and services for advertising agencies, mobile operators and media
groups, announces that it has achieved strong growth for the year ended 31
December 2007. The Company expects to report revenue in excess of €19 m (an
increase of more than 75 per cent over 2006) and profit before tax for the year
in line with market expectations after providing for the early-stage
infrastructure and business development costs of the Ansible joint venture.
David Mann, Non-Executive Chairman commented: 'This excellent performance
demonstrates that Velti is successfully responding to the accelerated demand for
mobile marketing and advertising, by both strengthening relationships with
existing customers and expanding operations in new geographies. With its strong
profitability and balance sheet, we expect Velti to continue its rapid
profitable expansion and become one of the global leaders in the area of mobile
marketing and advertising'.
Alexandros Moukas, Chief Executive Officer added: 'We are experiencing strong
demand for our services across all our target markets. Velti MMP is being used
successfully by several of the world's largest mobile operators and brands,
while Ansible, our joint venture with Interpublic Group, is already
demonstrating strong traction in the marketplace. For 2008, we expect to see
further increased demand for our offerings in mobile marketing and in mobile
communities.'
In the last twelve months there has been significant growth in the market for
mobile marketing and advertising. As a result, Velti has experienced accelerated
demand for mobile marketing and advertising applications and services, with
increased new business across all client categories.
Significant business wins include the implementation of innovative mobile
marketing campaigns for major brands such as Johnson & Johnson, General Motors,
Microsoft, Verizon, Associated Press, LVMH's Hennessy, Pepsico,
Colgate-Palmolive, Ferrero, Bacardi, MTV, CBS, Vogue Magazine and Mastercard, as
well as the launch of brand loyalty and mobile community applications for
operators like Sing Tel's Globe Telecom, Austria telecom's M-Tel and Cosmofon
Another major driver during the past year has been the growth in repeat business
from major mobile network operators in Europe (Orange, Vodafone, Wind, Cosmote
and Q-Telecom), establishing Velti as a leader in the area of mobile marketing
and advertising.
In July 2007, Velti and Interpublic Group (NYSE:IPG), one of the world's leading
advertising agencies and marketing services groups, announced the launch of
Ansible, their joint venture which has formed a dedicated mobile marketing
agency. Ansible operates in North America and Europe, with plans to open
full-service offices in Asia, and is using Velti's Mobile Marketing Platform to
offer mobile strategy, creative development and campaign management, leveraging
best-in-class technology and expertise. Ansible has made excellent progress
since its commercial launch in September 2007, having signed-up 5 Fortune-50
customers for mobile campaigns in North America, Europe and Asia.
During 2007, Velti expanded its operations in Asia with a number of new projects
which included a mobile marketing campaign in the Philippines on behalf of Sing
Tel's Globe Telecom, Asia's leading communications group with more than 136
million subscribers in the region. Velti has deployed its Mobile Marketing
Platform as part of an interactive mobile marketing campaign which was designed
to increase Globe Telecom's customer loyalty and included a content-oriented
mobile community. The campaign proved very successful, generating more than 24
million interactions with mobile consumers.
In the past year, Velti created a number of similar brand loyalty building
campaigns for major operators in Europe. Orange UK, the leading UK mobile
operator, has partnered with Velti to launch an online and mobile music
community which offers a priority mobile ticketing notification and purchasing
service. The service is aimed at engaging and developing a direct and
interactive relationship between Orange and its customers, allowing users to
receive notifications regarding their favourite artists' concerts and reserve
tickets via their mobiles. In addition, Velti has partnered with Austria
Telecom's MTEL and Cosmote's Cosmofon to create innovative brand loyalty
campaigns with very successful results.
In the field of innovation and product development, Velti announced the launch
of version 3.5 of its Mobile Marketing Platform (Velti MMP), used for planning,
creating, managing and monitoring mobile marketing and advertising campaigns.
The platform incorporates more than 60 embedded best-in-class solutions that
model mobile advertising and mobile marketing campaigns. Velti MMP enables the
design and launch of campaigns in minutes rather than weeks with significant
cost savings. The deployment of the MMP is allowing Velti to evolve its business
model from being a traditional software provider to operating as a one-stop-shop
for mobile marketing and advertising. Recognising Velti's cutting edge mobile
technology and its ability to harness the power of mobility to meet business
objectives, the Mobile Marketing Association recently named Velti's MMP a
finalist for its Global MMA Awards in the category 'Innovation for Creativity in
Technology'.
In the year ended 31 December 2007, Velti generated positive cash flows from
operating activities. The achievement of positive cash flows after investment
activities remains a short-term objective. In October 2007, Velti raised £7.5
million before expenses via a placing to institutional investors strengthening
further its balance sheet position. The funds were raised to finance the
development of Ansible, the working capital needs stemming from the rapid growth
in its business with mobile operators in mobile marketing and advertising and
the enhancement of its product development and operating infrastructure.
A full announcement of results for the year ended 31 December 2007 is expected
to be made in the second half of March 2008.
END
CONTACTS
Velti:
Alexandros Moukas, Chief Executive Officer +44 (0) 20 7633 5000
Pantelis Papageorgiou, Director of Finance
Bankside: +44 (0) 20 7367 8888
Simon Bloomfield or Steve Liebmann
RBC Capital Markets: +44 (0) 207 653 4667
Sarah Wharry
This information is provided by RNS
The company news service from the London Stock Exchange
DSASELF