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.