Monitise H1 revenues jumps; losses widen

Monitise plc (LSE: MONI.L), the leading global Mobile Money solutions provider, announces its unaudited interim results for the six months ended 31 December 2010.

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Financial Highlights

· 207% growth in revenue to £5.3m (H1 2010: £1.7m)

  • 202% rise in user generated revenue to £2.5m (H1 2010: £0.8m) with strong growth across all business streams
  • Momentum building with 3.5 million registered customers across the group at today's date, more than double the number at December 2009
  • Increased gross margin to 62% (H1 2010: 54%)
  • Monitise UK1 delivers cash breakeven milestone in December and has generated a profit in H1, six months ahead of management's target
  • Total live operations2 break even one year ahead of target

· Operating loss, before share based payments and exceptional item3, of £7.9m (H1 2010: £6.9m)

  • Investment consistent with stated use of proceeds in July 2010 fundraising, supporting strategy of geographical, technology and product expansion to:

           § Maintain leadership in mobile banking and payments
           § Strengthen position in mobile commerce

  • Business well positioned for next phase of growth

· Strong financial position

  • Cash balance of £33.7m on 31 December 2010 (H1 2010: £9.5m)

1 Monitise UK represents our live operation in the UK, formerly referred to as Monitise Europe.
2 Live operations comprise Monitise UK, Monitise Americas and Global Accounts (incl Visa Inc and Travelex).
3 Exceptional item relates to a one-off £1.0m profit from Monilink acquisition recognised in H1 2010.

Business Update

  • Monitise and Visa Europe sign exclusive partnership agreement to develop mobile banking and payment services offering mobile payment services direct to their customers - consumers and retailers
  • Phased launch comm>Phased launch commenced in India with Standard Chartered
  • Monitise Asia Pacific making strong progress, and on track for regional launch this year
  • Heads of terms announ announced today for partnership in Indonesia
  • Mobile Money Network Joint Venture created in November 2010 to deliver mobile payments, shopping and marketing network
  • First Monitise enabled Visa product launch on iPhone
  • Partnership with DeviceFidelity to launch world's most advanced mobile payments technology for Visa payWave transactions
  • Partnership with NFC software developer ViVOtech to deliver mobile payments services to banks across the United States
  • Monitise Americas launch new mobile banking service for U.S. Bank's prepaid card holders
  • First Mobile Money apps for Android handsets rolled out in US
  • Provisional licence granted in Nigeria

Technology

  • Enhanced integrated Monitise Globe technology platform unveiled October 2010
  • Industry leading product portfolio relevant to both developed and emerging markets launched; Mobile Banking, Mobile Wallet, Mobile Trading, Mobile Shopping and Payments and Mobile Servicing

Outlook

· Strong growth in registered customers and transaction volumes expected to continue

· Further new partnerships expected in the second half of the financial year which will deliver long-term contracts and strengthen our global footprint

· Total live operations set to generate profits and cash in the second half

· Consumer appetite and acceptance for Mobile Money services expected to grow substantially

Alastair Lukies, Chief Executive Officer, Monitise, said: "The six months ending December 31 2010 clearly demonstrate the strength and robustness of Monitise's platform and business model.

We are operating in a very exciting space and we have continued to extend our footprint, signing further critical commercial partnerships. These include the Mobile Money Network with Best Buy Europe and Charles Dunstone, and our partnership announced earlier this month giving Visa Europe a licence to Monitise's world-leading mobile technology across Europe. We firmly believe that the era of connected commerce is upon us and are pleased to continue to assist financial institutions in defending and extending their role at the centre of the payments infrastructure.

We anticipate signing further strategic partnership deals during the second half that strengthen both our global footprint and long-term contractual relationships. The rapid progress in our existing live operations and the number of exciting partnerships in play position us well as we continue to invest to extend our market footprint. We look to the future with confidence."

Duncan McIntyre, Chairman, Monitise, said: "This has been another outstanding six months for Monitise with significant progress made across the business. We have started the second half with confidence and are well placed to further develop our global mobile banking, payments and commerce services for clients.

I am particularly pleased to see our European business expand through our partnership with Visa Europe and the forging of an exciting new partnership in Indonesia, the fourth most populous country in the world. We anticipate this momentum continuing. "

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