In our share index update in May (see here) we noted that Monitise was one of a band of UK companies whose price was up due to improving results. The pre close trading update it issued today following its June 30 year end tells a story of “right partnerships”.
Figures first: full year revenue is expected more than double from £6m to £14m; minimum contracted revenues at year end over the next five years are approximately £55m, four times the year ago level; and it has seen a “strong” increase in operating profit, although the number was not disclosed. Cash stood at £23m on 30 June, which appears to be in line with the business although down on external expectations. H2 was good time for the company.
The company operates in the mobile banking, payment and commerce areas where partnerships are the lifeblood and during H2 it closed a five year, minimum £50m, deal with Visa. It already has a partnership with RBS/NatWest with whom it launched a banking iPad application. It is also involved in a joint venture with Best Buy Europe and Carphone Warehouse founder Charles Dunstone, which is helping it extend its reach from mobile banking and payments and into mobile shopping. Another partnership of note is with ATM and payments infrastructure player JETCO in the Asia Pacific region, where they plan to launch a set of consumer services.
As we note in Mobile/cloud convergence demands new alliances, we believe the mobile story will drive a host of new alliances and partnerships. Monitise is a small player but a player nonetheless.