Velocity Comp Regulatory News (VEL)

11 Jan 2007 07:00

Velti PLC11 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 mediagroups, announces that it has achieved strong growth for the year ended on 31December 2006, its first financial year as a publicly quoted company. As aresult the Company expects to report revenue in excess of €10.5m (this represents an increase of 115% over the previous year). Profit for theyear will be in line with market expectations. A major driver of growth during the year has been the growing repeat businessfrom major mobile network operators in South Eastern Europe (Vodafone, TIMHellas, Cosmote, Q Telecom, Armentel, Turkcell, CYTA, BH Telecom) and newbusiness won in the areas of mobile marketing, advertising, mobile communitiesand location based services. The strong and long-standing relationships of Velti, as a platform and servicesprovider, with mobile network operators led to increased new business across allclient categories. Significant business wins include the implementation of newmobile value added services for Cosmote, TIM Hellas and Vodafone. The Companylaunched mobile content and community services for Mo Mad (the virtual networkof Mad TV, the largest music-youth TV station in South Eastern Europe) and QTelecom. In 2006 Velti established itself as a leader in location based services in SouthEastern Europe, for example receiving a significant new contract for providingreal time traffic information over mobile phones as well as forming a jointventure with Telenavis, a company focused exclusively on navigation and locationbased services. In the field of mobile marketing Velti worked with Armentel in a successful sixmonth long mobile marketing and loyalty program with user participationsurpassing 12% of the total subscriber base. Velti is also benefiting in the USAfrom the demand for innovative mobile marketing and advertising solutions withprojects won from MaxPreps (the leading high school sports portal) Verizon andGreater Media Radio. Velti has recently opened an office in the UK and taken over the contracts thatpreviously formed the business of Digital Rum Ltd, a UK mobile servicesprovider. These included contracts with existing clients of Velti, such asVodafone, and other large UK companies including Orange, Argos and BAA. Inaddition to the sales potential for its existing products, Velti has acquiredsome intellectual property rights, previously owned by Digital Rum Ltd, withwhich the Company can augment the solutions Velti offers to its existing, non-UKclients. David Mann, Non-Executive Chairman commented: "These excellent resultsdemonstrate that Velti is successfully implementing the ambitious strategypresented to investors when it floated on AIM in April 2006. With its goodprofitability and strong balance sheet, Velti is well placed to continue itsrapid expansion." Alexandros Moukas, Chief Executive added: "We are experiencing strong demand forour services across all our target markets. For 2007, we see excitingopportunities and plan to continue increasing both our geographic coverage andour 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: 020-7367-8888Simon Bloomfield or Steve Liebmann This information is provided by RNS The company news service from the London Stock Exchange