Velti PLC
11 January 2007
FOR IMMEDIATE RELEASE THURSDAY, 11 January 2007
VELTI PLC
2006 trading update
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 on 31
December 2006, its first financial year as a publicly quoted company. As a
result the Company expects to report revenue in excess of €10.5m (this
represents an increase of 115% over the previous year). Profit for the
year will be in line with market expectations.
A major driver of growth during the year has been the growing repeat business
from major mobile network operators in South Eastern Europe (Vodafone, TIM
Hellas, Cosmote, Q Telecom, Armentel, Turkcell, CYTA, BH Telecom) and new
business won in the areas of mobile marketing, advertising, mobile communities
and location based services.
The strong and long-standing relationships of Velti, as a platform and services
provider, with mobile network operators led to increased new business across all
client categories. Significant business wins include the implementation of new
mobile value added services for Cosmote, TIM Hellas and Vodafone. The Company
launched mobile content and community services for Mo Mad (the virtual network
of Mad TV, the largest music-youth TV station in South Eastern Europe) and Q
Telecom.
In 2006 Velti established itself as a leader in location based services in South
Eastern Europe, for example receiving a significant new contract for providing
real time traffic information over mobile phones as well as forming a joint
venture with Telenavis, a company focused exclusively on navigation and location
based services.
In the field of mobile marketing Velti worked with Armentel in a successful six
month long mobile marketing and loyalty program with user participation
surpassing 12% of the total subscriber base. Velti is also benefiting in the USA
from the demand for innovative mobile marketing and advertising solutions with
projects won from MaxPreps (the leading high school sports portal) Verizon and
Greater Media Radio.
Velti has recently opened an office in the UK and taken over the contracts that
previously formed the business of Digital Rum Ltd, a UK mobile services
provider. These included contracts with existing clients of Velti, such as
Vodafone, and other large UK companies including Orange, Argos and BAA. In
addition to the sales potential for its existing products, Velti has acquired
some intellectual property rights, previously owned by Digital Rum Ltd, with
which the Company can augment the solutions Velti offers to its existing, non-UK
clients.
David Mann, Non-Executive Chairman commented: 'These excellent results
demonstrate that Velti is successfully implementing the ambitious strategy
presented to investors when it floated on AIM in April 2006. With its good
profitability and strong balance sheet, Velti is well placed to continue its
rapid expansion.'
Alexandros Moukas, Chief Executive added: 'We are experiencing strong demand for
our services across all our target markets. For 2007, we see exciting
opportunities and plan to continue increasing both our geographic coverage and
our offerings for mobile advertising and mobile communities.'
A full announcement of results for 2006 is expected to be made at the end of
March 2007.
CONTACTS
Bankside: 020-7367-8888
Simon Bloomfield or Steve Liebmann
This information is provided by RNS
The company news service from the London Stock Exchange
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