Velti has reported revenues of $31.2m, a decrease of 47 per cent year-on-year, and net losses of $130m for Q2, 2013.
“While we understood there would be challenges to improving Velti’s financial position and driving long-term growth, the second quarter proved to be more difficult than expected,” said Velti CEO Alex Moukas. “We continued, however, to take significant steps to focus the company on predictable business, customers and geographies.”
The company highlighted difficulties it has faced collecting payments in some countries, particularly in Greece and Cyprus, as contributing to its disappointing results.
Revenues from Velti’s mobile marketing business added up to $22.3m, while mobile advertising made up the remaining $8.9m.
On the company’s earnings call, CFO Jeff Ross admitted that its advertising side had underperformed, particularly in North America, something which he put down to publishers abandoning the Mobclix ad exchange platform “because we were increasingly unable to timely meet our payment obligations”.
It’s perhaps unsurprising, then, that Velti announced it is investigating selling off Mobclix, the US supply-side business it bought back in 2010, as part of its attempts to cut costs. It’s part of a wider strategy which will see Velti moving out of the markets where it is struggling in order to refocus.
“Over the past few months we have made significant progress extricating ourselves from businesses at the root of many of our difficulties, focusing instead on core opportunities for growth in mobile marketing in key geographies like Western Europe, North America, India and China,” said Moukas. “For example, in the fourth quarter of 2012 we began to reduce our commercial activities in Greece and Cyprus, and as of the end of Q2 2013 we are generating no meaningful revenue from customers in this region.”