Monitise narrows full year losses

Source: Monitise

Monitise (LSE: MONI), the technology company delivering mobile banking, payments and commerce networks worldwide, announces its audited preliminary results for the year ended 30 June 2011.

Financial Highlights

• Revenues of £14.0m ($23.0m) (2010: £6.0m ($9.9m)) (2)

  • 133% year-on-year growth. Half-on-half revenues more than doubled from £4.3m in H2 2010 to £8.7m in H2 2011
  • Platform development and integration revenues of £6.0m (2010: £1.4m), up fourfold on prior year, driving future user generated income streams
  • User generated revenues of £6.3m (2010: £2.9m), more than doubled on prior year

• Gross margin consistently strong and in excess of 60% target

• Growing order book, including the recent five-year strategic contracts with Visa Inc. and RBS, hit £78m ($128m) as at 1 September 2011, six times the £13m order book at end-June 2010

• Revenue growth in live operations (1) drove profitability, from an operating loss (3) of £2.5m in 2010 to an operating profit of £3.2m

• Continued investment in line with strategy

• Loss for the year of £14.5m (2010: £16.8m)

• Loss per share 2.1p (2010: 3.7p)

• Robust financial position. Debt free with 30 June 2011 cash balance, including short-term deposits, of £23.6m

• Strong growth trajectory, with Group on track to double revenues again in 2012 and reach break-even in calendar 2013

Operational Highlights

The global opportunity for Monitise is far greater than even a year ago. We have achieved a step-change increase in our order book and this is creating substantial momentum for the business. Our live operations are profitable and growing, while we also continue to invest in the business opportunity globally.

• Strong growth in live operations:

  • Substantial increase in live transactions, with more than 10 million mobile banking transactions now processed per month. Value of mobile transfers and payments exceeding £160m perd;160m per month (2010: £0.6m)
  • Product set significantly expanded across international markets and functionality enhanced for core UK services through deepened integration with RBS Group
  • In excess of 4.5m registered customers, more than double the level a year ago
  • Monitise Americas has completed a very successful national roll-out for leading US tax service provider, H&R Block, which was a key contributor to significant growth in Monitise Americas' transaction volumes

• World leading strategic partnerships substantially strengthened, including:

  • New five-year agreement, announced June 2011, with Visa Inc., the world's leading payments technology company, to accelerate the development of Visa Inc.'s mobile services globally
  • Strategic agreement, announced February 2011, with Visa Europe, Europe's leading payment business, to develop and supply mobile payments services for Visa Europe's 4,600 member banks and financial institutions across 36 countries
  • Five-year strategic agreement with RBS Group, announced August 2011, to broaden mobile banking and payments services across all banking divisions

• Broadening of new investments and agreements worldwide in second-half as global demand for mobile banking, payments and commerce takes off:

  • The Mobile Money Network, a mobile shopping joint venture formed between Monitise, Best Buy Europe and Carphone Warehouse founder Charles Dunstone with Sir Stuart Rose appointed MMN Non-Executive Chairman
  • JETCO and PCCW partnerships established to facilitate launch in Hong Kong
  • Full licence secured from Central Bank of Nigeria to provide Mobile money services in the country following successful mobile banking and payments pilot
  • Joint venture formed in Indonesia with subsidiary of Astra, the country's largest conglomerate, with Permata already lined up as launch bank

Strengthening of Board and management team

• New Non-Executive Director appointments:

  • Elizabeth Buse, Group President, AP and CEMEA, for Visa Inc., appointed July 2010
  • Tim Wade, independent non-executive director of Resolution Limited and Macquarie Bank International Limited, appointed January 2011
  • Sushovan Hussain, Chief Financial Officer of Autonomy Corporation plc, appointed January 2011

Announced today:

  • Brian McBride, former Managing Director of in the UK and former Managing Director T-Mobile (UK), joins the Board as a Non-Executive Director, effective from 1 September 2011
  • Jan Verplancke leaves the Board after three years service

• Executive Management Team

  • Additional key hires have been made across the business in a number of areas to manage rapid growth

(1) Live operations segment comprises Monitise UK, Monitise Americas and Global Accounts (incl Visa Inc., Visa Europe, and Travelex)
(2) Foreign exchange rate for Sterling/US Dollar used in the preliminary results is $1.64
(3) Operating profit/loss adjusted to exclude share-based payments and prior year exceptional gain

Alastair Lukies, Group CEO, Monitise plc, said: "This has been a breakthrough year for Monitise. We are a high growth company and a market leader in the mobile money space just as it hits its own tipping point. We have built a robust, secure, interoperable bank-grade technology platform that, combined with our world-leading product roadmap, is relevant in all parts of the globe.

"The breadth and strength of our global strategic alliances validate that our strategy is working worldwide across mobile banking, payments and commerce. Revenues are more than double those of the previous year and we are seeing accelerating profit growth across our live operations. We will continue to invest in the business, the Group is debt free and we are excited about the opportunities ahead."

Duncan McIntyre, Chairman, Monitise plc, added: "The Board is delighted with these results and the performance of the team. It has been a year of growth across the business and across the globe.

"The Group is hitting key targets as our live operations now deliver profit, we deepen our partnerships with Visa Inc. and RBS Group, and form new partnerships with Visa Europe and Astra, among others.

"During the year our Board has been strengthened and, as well as welcoming our new Non-Executive Directors, I would like to thank Jan Verplancke for his contribution over the last three years.

"The business is increasingly well positioned to deliver ongoing value for our shareholders. Monitise is on track to breakeven in 2013 and we look to the future with confidence as our momentum continues." 

Comments: (0)