Mobile banking company Monitise has put itself in the shop window, as its stock price deteriorates still further and it warns on full year revenues.
Shares in the loss-making business dropped 10% as the company warned of a likely drop in FY 2015 revenue, compared to previous guidance of at least 25% growth. The company's share price has dropped 75% over the past year as it refocusses its business in the face of an unpredictable and rapidly changing market for mobile financial services.
Monitise is currently undertaking a painful transition to a product-based recurring revenue model, an effort which is reflected in a dramatic 47% drop in license revenue to £4.4 million. Development and integration revenue also fell 13% to £21.8m, while subscription and transaction revenues were up eight per cent to £16.2m.
For 2015, the company is forecasting a full year EBITDA loss of £40-50m/$60-76m, although it reiterates its expectation to be EBITDA profitable in FY 2016.
Monitise says it is now undertaking a strategic review of its options "in light of recent share price weakness, shareholder feedback and industry developments".
The Board has appointed Moelis & Company as its advisor and has invited expressions of interest for a merger or full-scale takeover from potential suitors.
In a statement, the company says: "The Board believes that the company has an exciting future as an independent business, however it recognises that there may be other businesses which could leverage Monitise’s capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today. The strategic review is expected to be all encompassing and will include consideration of corporate transactions and stock market listing options."