Monitise trebles turnover

Monitise, the mobile banking spin-off of Integrator Morse has trebled its turnover for the financial year ended 30 June 2008.

In its preliminary results for the year, the firm posted turnover of £1.5m compared to £500,000 in 2007. But pre tax loss increased to £14m compared to £8.7m, largely due to an £8m “development and deployment cost” during the year.

Monitise had also raised £11.8m of new capital through a subscription for shares by new and existing investors to help the development of the business.

It also revealed that user registration is ‘developing positively’ in the UK, with service coverage exceeding 50 per cent of all current account customers, up from 37 per cent in January 2007. In the US, 38 financial institutions have contracted to the Monitise Americas service, an increase of 100 per cent from January 2008.

The firm also revealed that it is assessing opportunities in other territories such as Africa and India and looking at markets with the ‘strongest commercial potential’.
In a statement Alastair Lukies, chief executive of Monitise, said: “We are seeing global acceleration in the inevitable convergence between mobile devices and financial services. We have established ourselves in an excellent position to become the trusted service partner of choice. We have the experience and infrastructure to run secure mass market, bank grade mobile payments systems, a unique position in a market place that has, to date, been largely occupied by mobile software vendors.

He added: "Our goal, over the coming year, is to at least maintain the current rate of revenue growth. Overall cash overheads are anticipated to be in the region of £14m, subject to potential additional investment in new territories during the year. There are a number of new opportunities opened up b y the partners participating in our fundraising, and our investment focus will be on those markets with the strongest commercial potential."

Duncan McIntyre, chairman of Monitise, added: "In the year since demerger, Monitise has continued to develop. Building a long term, sustainable technology platform requires focus and tenacious energy, particularly in the current economic environment. We have continued to invest in our products and have also made considerable enhancements to the functionality and capability of our technology in readiness for the natural evolution from mobile banking to payments and commerce in mature and emerging markets.

"In addition to a strong year of operational progress, we were delighted with the endorsement of the recent subscription; the quality of investors we have attracted is testament to the quality and potential of our business. We enter the new financial year energised and focused on further developing our market-leading position," he said.