News

Velti doubles first half revenues

01 July 2008 13:29:00

Mobile marketing and advertising group Velti said performance in the first half of 2008 has been at the top end of the board's expectations.

Revenues doubled in the first half of 2008 to around €15m from €7.4m in the first half of 2007, although the adjusted operating margin shrank to 16% from 19%.

With companies increasingly allocating more of their marketing spend to mobile marketing and advertising campaigns, Velti has invested in expanding its global reach and in improving its Mobile Marketing Platform. As a result, net capital expenditure was around €5m in the first half, although this level of expenditure will not be repeated in the second half.

Velti said that revenues in 2008 at Ansible, its joint venture with Interpublic Group, will be below projected levels as a result of slower than expected implementation of contracts.

In a separate announcement, the company said its Moscow office has landed a contract with MTS, the largest mobile phone operator in Russia.

Under the terms of the deal Velti will create, deliver and manage large mobile marketing campaigns across Russia.

The initial contract runs until the end of August 2008.

Velti's revenues will be linked to the measured success of the campaign, although the company will also receive a set-up fee.

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