Monitise hails break-even milestone

Monitise hails break-even milestone

Monitise says that its European arm has reached month-on-month cash break even, a key performance target for the UK-based mobile money business, which in August reported widening full year operating losses of £17.1 million.

In a trading update to the London Stock Exchange, Monitise says that the break-even milestone was reached by the close of the six month period ended December 2010.

The company, which has secured investment from Visa and established multiple overseas outlets, says it now has over three million registered customers for its live services, with the Monitise Globe platform handling more than 13 million transactions in December.

In August, the London-based firm reported a 125% surge in revenue to £6 million, with transactional revenues seeing particularly strong growth, reaching £2.9 million compared to just £500,000 in 2009.

However, the company continued to incur heavy costs, citing investment in technology - £4.9 million - and international expansion.

Commenting on the latest figures, Alastair Lukies, Monitise CEO says: "Momentum in Monitise and the broader Mobile Money space is accelerating at an aggressive pace as user numbers and transaction volumes continue to grow globally. It is particularly pleasing that the first of our deployed platforms has hit the key break-even milestone."

By mid-day, the Monitise share price was up 8.8% to 21.5 pence from an overnight close of 19.75 pence.

A full breakdown of the H1 numbers will be announced in early February.

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