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Monitise plc Trading update

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realfast95 Member Level  Monday, 07/06/15 05:30:06 AM
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Monitise plc Trading update
06 Jul 2015

CEO strategy update



FY 2015 revenue expected to be between £88-90m



H2 EBITDA(1) loss expected to show material improvement on H1



FY 2016 EBITDA(1) profitability target reiterated; grosscash of £88.6m provides balance sheet strength to break-even and beyond



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.



Monitise CEO Elizabeth Buse said: “We have delivered a solid revenue performance in what has been a difficult year. Across the business, our cost disciplines have improved, we are taking the necessary tough decisions and our path to profitability is on track. Central to our growth plans is our new API-based platform launched in April, we have been delighted with its technical capability and the reception it has re

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