Big Velti Client Is T-Mobile
In September, mobile marketing firm Velti announced closing its largest-ever deal -- worth $27 million over two years -- with a company described only as a “major U.S. brand.”
The major U.S. brand is T-Mobile USA, according to sources. Neither Velti or T-Mobile would confirm that the wireless carrier is the client in question. But last year, Velti handled a large mobile marketing campaign for T-Mobile aimed at promoting the carrier’s 4G service. The 4G PayDay campaign included a trivia contest and drew involvement from more than 1.3 million T-Mobile subscribers, according to Velti.
In announcing the $27 million contract Sept. 18, Velti said the relationship would focus on mobile programs designed to drive engagement and the long-term loyalty of the brand’s existing customers. That’s in line with the type of work it has already done for T-Mobile.
The dollar size of the deal is far larger than Velti’s typical six-figure engagement. News of the agreement helped push the company’s stock up 6% to $10.30 the day after it was announced. It has since fallen back below $7 a share as of Nov. 5.
Velti reports third-quarter results on Nov. 14. Wall Street analysts expect the company to report earnings of three cents a share on revenue of $62 million. That compares to a loss of two cents a share on revenue of $38.2 million in the year-earlier period.