Velti is the world's leading mobile marketing and advertising company. With operations in 35 countries
NOTE - results are issued in EUROs so take care with which currency you are considering
No TA on this thread please
http://www.velti.com/index.cfm/Home/1000
in a recent rns
http://www.investegate.co.uk/Article.aspx?id=200905121200011030S
Velti recently announced strong 2008 organic revenue (up 164% on 2007) and profits growth: sales reached $70 million, with an EBITDA of $17 million. Revenues in the first quarter of 2009 are expected to be more than 50% higher than Q1 2008.
EPS last year were held back by
a) a placing at the end of 2007
b) non-cash cost of share based payments (an issue that arises regularly)
c) the non-cash effect of foreign exchange translation losses (that is intercompany loans in foreign subsidiaries whose currencies depreciated against the Euro in 2008)
If you exclude b) and c) EPS were 20c a 42% increase on the previous year. In addition this level of growth is lower than the growth in turnover as
In order to establish a leading position in the mobile marketing and advertising market and to maximise growth opportunities, we have invested heavily in building a global footprint. Whilst this investment has had an impact on short-term margins, we expect that it will result in further growth in revenues and profits in 2009 and future years. Capital expenditure in 2008 increased by 141 per cent to €13.0 million (2007: €5.4 million); we anticipate that investment for the current year will be at a significantly lower level.
Evidence external to Velti of growth in mobile marketing/advertising is given by Creston (CRE)
http://www.investegate.co.uk/Article.aspx?id=200906230700113040U
Growth of 56% in digital and online to 28% of Group revenues
Digital is the fastest growing part of our business and it represented 28 per cent of Group revenues in 2009 (2008: 19 per cent).
Velti are on a prospective PE of under 7 (at a price of 160p) which even in the current market is too cheap
In 2008 they issued a trading update on 1st July and I therefore expect one next week that confirms that the Q1 growth levels have applied in the half year.
