Business
Major Russian contract signed
Major Russian contract signed.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n RNS Number : 9548X Velti PLC 01 July 2008 \n \n\n\n\n\n\nFor Immediate Release\n\n\nJuly 1st, 2008\n\n\n\n\n\n\nVelti plc\n\nMAJOR RUSSIAN CONTRACT SIGNED WITH MTS\n\n\nVelti plc ('Velti'; LSE-AIM: VEL), a leading provider of software platforms, applications and services for advertising agencies, mobile operators and media, has commenced a major mobile marketing project for Mobile TeleSystems OJSC ('MTS'; NYSE: MBT) - its first contract in Russia.\n\nMTS, the largest mobile phone operator in Russia with a total of 86 million subscribers in Russia and CIS countries, has contracted Velti to create, deliver and manage large mobile marketing campaigns being run across Russia, using Velti's market-leading, award-winning Mobile Marketing and Advertising Platform. The initial campaign of the contract runs through the end of August 2008.\n\nThe objective of the campaign is to increase MTS' brand awareness by creating excitement and interaction between the brand and its customers. This is an innovative, integrated campaign with text messaging, mobile internet, web-interactive and TV components. The campaign is supported by MTS-branded advertising on the national TV networks in Russia.\n\nVelti's revenues are based on a setup fee component and a performance-based component tied to the overall results of the campaign. We cannot yet put a value on this contract until the end of the project, but we expect it to make a significant contribution to this year's revenues. The gross margin in these types of engagements is smaller than Velti's traditional margin however revenues ramp up considerably faster and costs are very predictable.\n\nAlexandros Moukas, Chief Executive of Velti, commented: 'The MTS mobile marketing campaign is a major strategic contract for Velti and is our first in Russia. The Russian market holds enormous potential for us, being the 3rd largest mobile market globally behind China and India.'\n\nEND\n\n\nCONTACTS\n\n\n\n\n\nVelti:\n\n\n\n\n\n\n\nAlexandros Moukas, Chief Executive Officer\n\n\n+44 (0) 20 7633 5000\n\n\n\n\nPantelis Papageorg...