MONI Monitise

TIDMMONI

RNS Number : 8032E

Monitise PLC

21 July 2016

Monitise plc

21 July 2016

This announcement contains price sensitive information.

Monitise plc

Trading Update

London - 21 July 2016 - Monitise plc (LSE: MONI, "Monitise" or the "Company") the financial services digital technology company announces an unaudited trading update for its financial year ended 30 June 2016.

Financial summary and outlook

   -     In line with previous guidance, H2 FY 2016 revenue was similar to H1 FY 2016 (GBP33.4m) 

- In line with previous guidance, H2 FY 2016 EBITDA(1) was positive, compared to a loss of GBP20.2m in H1 FY 2016, driven by material reduction in total costs

- Cash outflows were materially lower in H2 FY 2016. June 2016 gross cash balance of GBP42m compared to GBP53m at December 2015, a reduction of GBP11m, compared to GBP35m reduction in H1 FY 2016 and GBP40m reduction in H2 FY 2015

- FINKit(R) generated its first revenues from clients paying Monitise professional service fees for technical and operational trials

- Monitise expects FY 2017 revenue to be lower than FY 2016 as a result of the continuing transition for the business as it begins the move from Monitise Enterprise Platform and Monitise Vantage Platform contracts to FINKit(R) driven revenues

Monitise FINKit(R) empowers banks to execute on innovation quickly, safely and securely. The FINKit(R) platform and toolkit provides a modern application development and operations environment built for bank grade security, compliance and performance. It is combined with a powerful agile engagement model and an industry leading partnership programme exclusively focused on enabling collaboration between banks and the Fintech community. The platform is being marketed to existing and prospective clients, in partnership with IBM.

In order that investors can track the FINKit(R) revenue transition, Monitise will publish more detailed segmental information including revenue and EBITDA starting with the preliminary 2016 full year results release. The disclosed segments will be FINKit(R) , Monitise Enterprise Platform, Monitise Vantage Platform (Americas), Content, Create, MEA and central costs.

Monitise expects to announce its preliminary results for the full year ended 30 June 2016 on 8 September 2016.

Monitise CEO Lee Cameron said:

"We took some tough decisions early in the financial year, and saw the benefits in the second half in the form of our first EBITDA(1) profitable half-year and a material reduction in cash outflows, as outlined in our February 2016 guidance.

FINKit(R) remains the main driver of long-term growth at Monitise and whilst contracts are taking longer to conclude than anticipated, I am encouraged by the response of our potential customers who continue to evaluate FINKit(R) ."

About Monitise

Monitise plc is a specialist in financial services technology focused on accelerating the digital transformation of banks and financial institutions.

Monitise FINKit(R) platform and associated capabilities builds upon over a decade of experience in delivering digital services to banks and financial services partners. Whether it is augmenting legacy systems with minimal impact on those systems, a greenfield project, or strategic digital transformation, FINKit(R) delivers innovation at speed, safely and securely.

Find out more at www.monitise.com.

(1) (EBITDA is defined as operating loss before exceptional items, depreciation, amortisation, impairments and share-based payments charge.)

(2) FINKit(R) is a registered trademark in the UK.

For further information:

Monitise plc

   Lee Cameron, Chief Executive Officer                                    Tel: +44(0)20 3657 0331 

Gavin James, Chief Operating Officer

Canaccord Genuity (NOMAD)

   Simon Bridges, Cameron Duncan, Emma Gabriel                 Tel: +44(0)20 7523 8000 

Attila Consultants

Charles Cook, Bill Spears Tel: +44(0)20 7947 4489

Tel: +44(0)7710 910 563

This information is provided by RNS

The company news service from the London Stock Exchange

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