Record Loss for Monitse - Mobile World Live

Record Loss for Monitse

26 AUG 2010

Monitise, the British plc which provides both ATM in your pocket and third world banking solutions has reported growing losses from £13.13m last year to £17.04m.

Part of the Monitise business model is based on bounties from banks for signing up new customers and this will account for some part of the £6m revenue. New subscriptions are growing at 100,000 users a month. This will be in part thanks to the iPhone application. Transactional revenues grew from £500,000 last year to £2.9m this year. Licence revenues 1.7m and consultancy £1.4m.

A deal in July saw Visa increasing its stake in Monitise to 14.4% which along with a share placing saw Monitise raise £32m. At the time of the deal Monitise shares were priced at 23.5p. Shares dropped to 20.5p on the news but have now recovered to 22p. Administrative expenses rose from £13m to £19.36m. Operating loss from £11.97m to £14.28m

The Visa deal concentrates on a roll out in India, one of the potentially most lucrative markets in the world but with significant regulatory hurdles.

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