Stellar sales growth at mobile banking platform provider, Monitise, has been propelled by a surge in registered users across the globe as mobile banking continues to gain in popularity.
Monitise now has 3.5m registered users, which have produced user-generated revenues of £2.5m - that's £1.7m more than last year. Meanwhile, live operations - which include operations in UK and America - have generated a maiden operating profit of £0.9m on the back of a 206 per cent hike in revenue to £4.9m. Royalty and license sales, at £1.2m, have also started to gain traction.
The group began a phased launch in India as well, through a partnership with Standard Chartered, and plans remain on track to roll-out in Asia Pacific later this year. Monitise also secured a key partnership with Visa in the period and the first product of this union was Visa's iPhone app. But that development work has meant a rise in investment, which boosted operating costs in the period by 43 per cent to £11.2m.
Canaccord Genuity expects a full-year pre-tax loss of $14.9m, giving a loss per share of 3.7p - the broker expects Monitise to begin making profits in 2013.
MONITISE (MONI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 25p | MARKET VALUE: | £174.7m | |
| TOUCH: | 24-25p | 12-MONTH HIGH: | 26p | LOW:14p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 5p | NET CASH: | £33m* | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 1.73 | -6.67 | -1.6 | nil |
| 2010 | 5.31 | -8.70 | -1.3 | nil |
| % change | +207 | - | -1 | - |
| *Includes £25m of short-term investments | ||||
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