MONITISE PLC
RNS Number : 2016S Monitise PLC
06 July 2015
Monitise plc
Trading update
CEO strategy update
FY 2015 revenue expected to be between £88-90m
LONDON - 6 July 2015 - Monitise plc (LSE: MONI, "Monitise" or the "Company") announces an unaudited trading update for its financial year ended 30 June 2015.
Financial update
· Full-year 2015 revenue is expected to be between £88-90m.
· As guided on 25 March 2015, Monitise expects H2 2015 operating and capital expenses to be materially lower than H1, with a further improvement in FY 2016. Accordingly, we expect an improved position in H2 EBITDA(1) loss compared to H1.
· Monitise reiterates its FY 2016 EBITDA(1) profitability target.
· Gross cash at 30 June 2015 of £88.6m shows a material reduction in H2 cash outflows over H1 and provides balance sheet strength to see Monitise through to break-even and beyond.
(1) EBITDA is defined as operating loss before exceptional items, depreciation, amortisation, impairments and share-based payments charge.
Strategy update
Under CEO Elizabeth Buse, who was appointed as sole CEO of the Company in March 2015, Monitise continues to drive towards EBITDA profitability in FY 2016 and profitable growth thereafter. While our review of the business remains ongoing, and good progress is being made with projects to optimise costs and improve profitability, it has become increasingly clear that there are two distinct types of business within Monitise that have different characteristics and need to be managed accordingly:
· Standardised platforms - The new business leveraging standardised deployments of cloud-based API and on-premise products and platforms. This business is expected to be the key driver of our future growth and profitability and is supported by our digital agency and content teams. It has faster deployment times, lower up-front costs and can be more easily adopted by customers. Client support
for this model is evidenced in our Santander fintech joint venture as announced on 1 July 2015 and a major regional US financial institution recently contracting to access the new cloud-based platform.
· Customised platforms - This business line supports many of Monitise's existing clients with customised platforms, mainly in Europe. Monitise will work with its clients and partners to improve and optimise the financial performance of this business line, including enabling existing clients to benefit from the new cloud-based platform for their own innovation roadmaps.
A further update will be provided with Monitise's 2015 financial year results, which are scheduled to be published on 9 September
2015.
About Monitise
Monitise (LSE: MONI) is a world leader in Mobile Money - banking, paying and buying with a mobile device. Leading banks, payments companies, retailers and mobile networks use Monitise's technology platforms, products and services to securely connect people with their money. Monitise's digital agency designs and delivers high-engagement apps across multiple industry verticals.
More information is available at www.monitise.com. For views and insights from the Monitise team about the world of Mobile Money, visit www.monitise.com/insights.
Enquiries:
Investor Relations
Richard Johnson, Michelle Singleton Tel: +44(0)20 3657 0331 investorrelations@monitise.com
Media Relations
Gavin Haycock, Anna Howard Tel: +44(0)20 3657 0362 press@monitise.com
Canaccord Genuity
(NOMAD)
Simon Bridges, Emma Gabriel Tel: +44(0)20 7523 8000
Brunswick
Jonathan Glass, Jon Drage Tel: +44(0)20 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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