Monitise revenues soar as profitability lags

UK mobile money outfit Monitise is reporting a near-doubling of revenue for the year to end-June 2013.

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Monitise revenues soar as profitability lags

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In a trading update, Monitise says it expects to record full-year 2013 revenue of at least £70m, compared to £36m in FY 2012. The group makes no estimates on the P&L side, but concensus forecasts indicate a significant increase in losses at the Ebitda level as the company continues to scale its operations.

The company has a strong balance sheet, with £85 million cash in hand following a £100 million fund raising effort late last year. At the time, Monitise warned of a delay in its quest for "near-term" profitiability.

The year has been one of significant corporate and business activity, with the firm making three acquisitions, expanding its partnership with Visa and launching a number of new products in local and overseas markets.

Monitise Group CEO, Alastair Lukies, says: "While the global mobile money landscape is growing as predicted, it is gathering momentum faster than anyone anticipated. Our strategic focus on enhancing our existing mobile banking and payments franchises with world-leading mobile commerce capabilities has proven to be very timely."

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Comments: (1)

A Finextra member 

Call me old fashioned - but i am not sure i get a business model that delivers, (after Gdnose how many years of funding rounds, mezz funding, dilution and expansion) a model that shows Losses growing in line with revenues..  I get it, that for a couple of years a business loses money... Monetize seems to have taken out a patent on doing it for longer than any other company on earth!  

On this basis - Monetise is possibly (along with Facebook) would appear to be one of the dinosaurs of the Dot Com/Mobile boom - unable to make the model work - but continuing to stomp around looking big and menacing,   whilst more nimble  'mammalian' businesses steal their lunch!   Will their Dinner be 'Jam tomorrow'?

 

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