Monitise reports full year loss

Source: Monitise

Monitise ('Monitise'; LSE: MONI.L), the mobile banking and payments technology specialist which listed on AIM at the end of June 2007, today announces its maiden results as a listed company for year to 30 June 2007.

  • Strong progress in UK business
    • Three major UK banking groups and seven UK mobile operators now using Monitise platform including HSBC, first direct, Alliance & Leicester, Royal Bank of Scotland, NatWest, Vodafone, Orange, O2, T-Mobile and Hutchison 3G
    • MONILINK services will be accessible by Autumn 2007 by 35% of all current account card holders in the UK
    • Confident of further UK bank signings in coming months
  • International roll out gaining traction
    • Joint venture with the banking and payment specialists Metavante in the US, giving access to a potential market of over 8,600 financial services firms
    • Agreement in place with T-Systems, providing exclusivity to negotiate the rights to the Monitise platform in Germany
    • New agreement with BT Global Services, providing exclusivity to negotiate the rights to Monitise platform for selected Gulf States
    • New agreement with Global Financial Consultants Pty Ltd providing exclusivity to negotiate the rights to the Monitise platform in Australia
  • Demerged from Morse plc and raised £20.2m (net) via placing in June 2007 to meet working capital requirements
  • Investment phase continues
    • Developing opportunities in key territories
    • Signing new banks and the roll out of existing mobile banking and payments services including balance enquiries, mini-statements and mobile top-ups
    • Implementation of new services to include inter-account transfers, second factor authentication and remittances to be added
  • Revenue stream beginning to build
  • Board confident Monitise has established an excellent competitive position and has compelling prospects

Duncan McIntyre, chairman, said: "We have made strong progress both with our UK business and our international expansion strategy this year and are well positioned to become one of the leading mobile banking and payment platforms worldwide.

After three-and-a-half years of intensive development, Monitise has reached hed a key stage in its evolution. Today we are the leading player in the UK mobile banking and payments market, we have a strong foothold in strategically important overseas territories and substantial interest from potential partners and customers. In addition, the demerger and placing has brought the necessary focus to the business as well as the working capital required to further develop our operations and intellectual property.

The Group is still in its investment phase and as such, we are focused in the near term on rolling out our platform and developing related services to further exploit the value of our technology and intellectual property. We already have future income streams integrated into the product roadmap and are experiencing encouraging early signs of revenue generation."

Alastair Lukies, CEO, added: "Monitise has had an extremely successful year, and we believe Monitise will become one of the leading mobile banking and payments providers in the world. The successful demerger from Morse plc and the fundraising allows us to continue to develop our business as an independent company and pursue our strategy for growth.

We have a well established position in the UK and, through the agreements with the major banks and operators we have signed, our MONILINK service will be accessible to 35% of all current account card holders of UK banks by Autumn 2007. We are confident that we will reach agreement to provide our services to other UK banking groups over the coming months.

With a joint venture established in the US with Metavante Inc and a presence in Germany through T-Systems, as well as new agreements covering certain of the Gulf States and Australia.

The mobile banking and payments market is rapidly gaining momentum, not dissimilar to the growth of internet banking in its early stages and our technology has the mass-market characteristics required for mobile banking to become a ubiquitous and valuable banking channel.

Monitise has strong momentum, an excellent competitive position and compelling prospects and we believe the current year will show substantial progress."

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