Velti PLC
16 July 2007
For Immediate Release Monday, 16 July 2007
VELTI PLC
Strong performance and Key Strategic Agreement in the first half of 2007
LONDON - Velti plc ('Velti'), a leading provider of software platforms,
applications and services for advertising agencies, mobile operators and media,
announces that it has achieved a positive trading performance for the six months
ended 30 June 2007.
The company has delivered a financial performance for the period at the top end
of the Board's expectations with revenue growth of 80% per cent to circa €7.25
million and similar margins compared to the corresponding period in 2006.
During the first half of 2007 Velti established itself as one of the global
technology leaders in the area of mobile marketing and advertising and
experienced significant growth in demand for its products and services. Today
the company has also announced the creation of Ansible, a 50:50 joint venture
with the Interpublic Group. Interpublic is one of the world's leading holding
organizations of advertising agencies and marketing services companies, with
more than $25 billion in annual customer billings, $6 billion in sales and
40,000 employees in 100 countries.
Velti and Interpublic will have joint control over the new company and Velti
will be using the proportionate consolidation method (50% line-by-line
consolidation under the IFRS IAS 31 standard) to account for Ansible.
Ansible is headquartered in New York with offices to be established later this
year in Los Angeles, Beijing and London. Velti's participation in Ansible is in
line with one of the Company's strategic goals of empowering advertising
agencies, mobile operators and media groups through top class software platforms
and managed services. The Company believes that the market for mobile
advertising and marketing will grow exponentially and that the advertising
agencies will play a critical role in this growth. Mobile marketing and
advertising has to be tied into the online, TV, print, radio and outdoor
advertising strategy, making Interpublic the ideal partner for this Joint
Venture. Velti will be providing all the mobile marketing and advertising
back-office services leveraging its market-leading Mobile Marketing Platform
v3.6 which automates more than 60 different mobile marketing activities and
provides a key competitive advantage to Ansible.
The mobile marketing and advertising market is poised to grow dramatically over
the next few years:
•Mobile Marketing and Advertising will be worth $19 billion by 2011, up
from $0.75 billion in 2006 (ABIResearch)
•Interpublic captures approximately 7% of the global media market, with an
estimated $25 billion in annual customer billings (Recma, Mediapost)
•Over 1 billion mobile devices are expected to be sold in 2007, compared
to 200 million PCs and 200 million TVs (Oppenheimer)
•In 2011 mobile subscriptions will reach almost 4 billion (56% of the
global population) (Informa)
•89% of brands plan to market through mobile by 2008 and 42% of consumers
welcome mobile advertising and marketing if it is relevant to their needs
and targeted (Yankee group)
The growth in the first half of 2007 has been driven by mobile operator projects
in UK and Southeastern Europe and advertising agency and consumer brands
engagements in the US and the UK. Velti has expanded its services and customer
base in Southeastern Europe by renewing contracts with Vodafone, WIND, Q-Telecom
and the OTE group. In the UK, Velti has started a strategic cooperation with
Orange, through the provision of managed mobile communities and mobile commerce
transactions.
Following the launch of its new Mobile Marketing and Advertising platform, Velti
is executing mobile marketing projects for MTV, Real Networks and LVMH's
Hennessy out of its New York based offices, while it also acquired as customers
brands like Motorola and PepsiCo's Tasty Foods in Europe. Velti believes that
the future growth of mobile value added services will be driven by mobile
marketing and advertising and the Company will be able to benefit significantly
from the growth of this market.
Ansible will be leveraging the existing infrastructures of Interpublic and
Velti. The Board therefore expects that the establishment of the joint venture
will have a broadly neutral effect on the P&L this year. In due course Ansible
could have a significant positive effect in the company's results.
The Board is very pleased by the financial performance in the first half of
2007. Velti's revenues have traditionally been much stronger in the second half.
The Board is confident that this seasonality will continue and the company will
meet its financial targets for the year.
The announcement of interim results is expected to be made in the second half of
September 2007.
ENDS
CONTACTS
Velti:
Alex Moukas, Chief Executive Officer +44 (0) 20 7633 5000
Pantelis Papageorgiou, Finance Director
Bankside: +44 (0) 20 7367 8888
Simon Bloomfield or Steve Liebmann
Oriel Securities: +44 (0) 20 7710 7600
Andrew Edwards
About Velti
Velti is a leading mobile platforms and services provider that enables mobile
advertising, marketing and mobile content. With offices in London, New York,
Boston and Athens and more than 200 employees, Velti operates in 10 countries
and its more than 100 corporate customers include major mobile network
operators, advertising agencies and media groups. Velti is a publicly traded
company listed on the London Stock Exchange. For more information please visit
www.velti.com
This information is provided by RNS
The company news service from the London Stock Exchange
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