Monitise (LSE: MONI)("Monitise", the "Company" or the "Group"), a global leader in Mobile Money solutions,announces its unaudited interim results for the six months ended 31 December 2013.
- H1 FY 2014 revenue £46.5m, up 67% on H1 FY 2013.
- Gross margin increased to 73% from 72% in H1 FY 2013, with user generated margin particularly strong, owing to a number of product licence deals following recent customer wins and renewals.
- EBITDA (1)loss of £10.2m (H1 FY 2013 loss: £14.7m).
- Adjusted loss after tax (2)of £16.4m (H1 FY 2013 loss: £21.0m) and adjusted loss per share of 1.0p (H1 FY 2013 loss: 1.8p). Statutory loss after tax of £22.0m (H1 FY 2013 loss: £30.3m) with loss per share of 1.4p (H1 FY 2013 loss: 2.6p).
- Group net cash of £66.2m as at 31 December 2013. Free cash outflow (3)of £20.3m compared to £21.6m in H1 FY 2013.
(1) EBITDA is defined as operating profit/loss before exceptional items, depreciation, amortisation, impairments and share-based payment charges.
(2)Adjustments comprise share-based payments, exceptional items, impairments and acquisition-related amortisation.
(3)Free cash flow comprises cash used in operating and investing activities including capital expenditure and JV funding. It excludes exceptional items and net cash acquired on acquisitions.
- We continue to see increasing demand for our services and positive momentum across the Group and therefore see the need for continued investment as we look to maximise the growth opportunities for Monitise. We reiterate our full-year guidance.
- Expected revenue growth of approximately 50% in FY 2014.
- FY 2014 gross margin to be maintained above 70%.
- The Group sees multiple opportunities in all geographies both from direct sales channels and our growing partner network.
- A move to the London Stock Exchange's main market in calendar 2014 continues to be considered.
- Rising demand for Monitise-enabled Mobile Money services
- Processed payments and transfers now worth $71bn on an annualised basis, compared with $31bn a year ago.
- Further growth in live transactions, with more than 3.4bn transactions on an annualised basis, compared with 2bn a year ago.
- Registered end-user customers at 28m, compared with 20m a year ago.
- Global footprint strengthened
- IBM publicly announced working with Monitise in September 2013, calling out the development of new solutions to extend the adoption of Mobile Money services across the two businesses' client and partner networks.
- Monitise recognised with a 2014 IBM Choice Award for High Performing New Business Partner at IBM's PartnerWorld Leadership conference in Las Vegas on 11 February 2014.
- Following Monitise's appointment as the preferred mobile payments and commerce technology partner for Telefónica Digital in FY 2013, preparation is underway for a series of service roll-outs in geographies around the world.
- Industry recognition with CEB Tower Group and Javelin Research and Strategy "best in class" vendor awards.
- Growing global network of brands focused on new Monitise-developed solutions
- More than 30 Visa Europe member banks are now signed up to person-to-person payment solutions developed by Monitise that allow Visa cardholders to send money to each other using their mobile phones.
- Monitise entered into a Mobile Money partnership with a leading UK bank and financial services company.
- A major mobile banking and payments contract was renewed with a leading bank for a new minimum five-year term.
- Grapple Mobile Ltd ("Grapple") was acquired by Monitise in September 2013 and integrated into Monitise Create. The businesshas a broad pipeline of new commercial opportunities across financial services and other sectors such as sport, travel and entertainment in the UK, Europe and internationally. Monitise Create is working with FIFA and Samsung and has won its first contract with a leading US bank.
- Mobile banking services for Clydesdale Bank and Yorkshire Bank launched, generating strong customer adoption rates across iPhone, Android and BlackBerry devices.
- Vantage 5.1, the hybrid version of Monitise's technology platform in the Americas, was released with positive customer feedback.
- U.S. Bank began a pilot programme with Monitise to directly connect consumers' offline and online shopping experiences via smartphones and tablets.
- Monitise-developed NFC mobile payment capabilities launched by Desjardins Group, Canada's leading cooperative financial group.
- With Visa Inc., Monitise is working on a number of initiatives to support its mobile strategies, including enhancements to the Visa DPS mobile platform, Visa PayWave for contactless payments and a new mPOS platform.
- Partnership began with credit union CSCU that sees the Group's technology being offered to more than 2,600 credit unions across North America.
- Movida, which is Monitise's 50/50 Joint Venture (JV) with Visa in India contracted ICICI, India's largest private bank, to make the Movida mobile payments functionalities available to its customers. This follows Movida's previously announced partnership with HDFC Bank, India- second-largest private bank.
- Asia Pacific
- Monitise secured full control of Monitise Asia Pacific Ltd, its former 50:50 JV with First Eastern Mobile Investments Ltd.
- Monitise's first Chinese language Mobile Money solution was launched with the rollout of 'Easy TopUp' for Bank of China (Hong Kong). Using technology developed by Monitise, Bank of China became the first bank in Hong Kong to provide such a service to its customers in cooperation with Joint Electronic Teller Service Limited (JETCO), the ATM network provider in Hong Kong.
- Board appointments - New Chairman and Non-Executive Director
- Appointment of Peter Ayliffe as Non-Executive Chairman.
- Steve Chambers and Victor Dahir appointed Non-Executive Directors.
- Post period-end highlights
- Acquisition of Pozitron Yazilim A.Ş., ("Pozitron") in February 2014 to accelerate Monitise's Mobile Money capabilities in Turkey and the Middle East.
- Further to entering a three-year deal for multi-language mobile Point of Sale services with OP-Pohjola Group, Finland's leading banking group, for its business customers, new mPOS customer deals are under negotiation. Further announcements expected in coming months regarding business wins in the UK and Europe, including Germany, Italy, and internationally.
Monitise CEO Alastair Lukies said: "Mobile Money is growing and evolving as fast as ever and we have made solid progress in the first half of 2014. The world has gone mobile and industries are moving to catch up with consumer demand. As a trusted and non-threatening enabler, we are very pleased to be playing our role in helping to reconnect brands to their customers and bringing together an ecosystem of industries for the benefit of all.
During the half, we entered new relationships and deepened existing collaborations with leading players across financial services, payment processing, mobile network operators, technology businesses and retail. This helped to lift our revenue 67% to £46.5m and saw the value of payments and transfers running across our platforms hit $71bn, more than double what they were a year ago. But there is a lot further to travel. Large deals signed in 2013 are still in build phase, and our work with channel partners are also yet to materially impact our top line.
This is now a very dynamic market and fast evolving industry and we have positioned ourselves extremely well to cement a long-term and sustainable role in the way that society banks, pays and buys for generations to come."
Monitise Chairman Peter Ayliffe commented: "In my first statement as Chairman, I am pleased to report that Monitise has delivered another impressive performance in the first half of 2014.Banking, payments and commerce are being transformed by digital and mobile technology. While the sectors that Monitise operates in are large and some relatively complex, it is essentially about partnerships, robust infrastructure and collaborations that create compelling benefits for all participants in the ecosystem. This is an exciting time for the Group as it evolves to the next level in executing against its Mobile Money growth strategy.
The Board continues to assess scope for further investment to capitalise on the significant opportunity in our space and deliver value to our partners, clients and shareholders. Monitise has made a positive start to the second half and we look to the future with confidence."