Monitise losses widen as suitors circle

Monitise losses widen as suitors circle

UK mobile banking company Monitise says it has had positive discussions with potential suitors as it reports widening losses and an eight percent decline in revenues for the first half of the year.

Monitise, which put itself in the shop window last month, reported an Ebidta loss of £30.8 million for the six months to 31 December, from £10.2 million in the comparable period last year. Revenue also fell 8.8 percent to £42.4 million as the company adjusts to a new business model based on recurring revenues.

Monitise chairman Peter Ayliffe says: "The announcement of our strategic review has led to many constructive discussions with market-leading players interested in our business and the role we play in the industry. These positive discussions and the strong support from our existing strategic partners and clients underpin the board's confidence in the company's strategy, unique positioning, future prospects and value."

Despite similar assurances in the past. Ayliffe insists that the business remains on course to become Ebidta profitable in full-year 2016 as the transition to the new revenue model takes hold and the group moves its Mobile Money service to a new cloud-based platform in April.

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