Monitise doubles revenues...again

Monitise, the AIM-listed mobile banking and payments group, has more than doubled revenues for a third year in a row and says that this trend will continue in the coming year.

"This has been another very successful year for Monitise in which we have achieved and in many cases surpassed all that we set out to do. Revenues have more than doubled for a third year in a row and we have a very robust order book," said Chief Executive Officer Alastair Lukies.

Revenues in the year ended June 30th jumped from £15.3m to £36.1m, an increase of 136%. Development and integration revenues, which fuel future user generated revenues, surged by 237% from just £7.0m to £23.6m. User generated revenues increased by 69% from £7.4m to £12.5m.

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Meanwhile, revenues in the 2012/13 financial year are expected to reach at least £70m.

Monitise provides "bank-grade solutions and cloud computing capabilities, handling on an annualised basis, more than a billion transactions , as well as payments and transfers worth US$20bn." Its Enterprise Platform reaches more than 17m registered customers.

Earnings before interest, tax, depreciation and amortisation (EBITDA) narrowed from £11.9m to £10.4m. The group announced last month that it should be EBITDA breakeven by September 2013, one quarter earlier than the guidance provided this time last year.

Gross margins increased from 62% in 2010/11 to 66%; the group predicts that these will exceed 70% by the second half of the current year.

Monitise's order book at the end of June comprised more than £110m committed minimum orders, double the previous year, plus a further £160m of additional revenues expected rom existing contractual arrangement, delivering more than £270m in total.

Monitise has multi-year contracts with some major clients, including RBS Group, HSBC UK and The Co-Operative Bank. The group also announced on Tuesday that its Hong Kong Business has jointly signed a memorandum of understanding with the Bank of China (Hong Kong) to form a "partnership to explore new ways for people to make payments on their mobile phones."

Lam Wai Yee, Managing Director of Monitise Hong Kong, said: "As we continue on our mission of global mobile money innovation and building an ever-larger ecosystem for banking and payments as cashless transactions grow, it is essential that we collaborate with other leaders in their respective fields. We are delighted to be working with BOCHK, a leading banking group in Hong Kong, to fuel the growth of mobile payments."