By Rory Gallivan
LONDON--Monitise PLC (MONI.LN) slashed its full-year revenue
growth estimates for the second time this year, sending its shares
down 16%, as it blamed customers moving to subscription payments
rather than paying up front.
The mobile payments technology provider, which is partly owned
by payment card company Visa Inc. (V) and helps it and other
companies to enable their customers to make payments with
smartphones, now expects revenue growth of 31% to 33% for the year
ended June 30, down from 40% previously.
The downgrade is "due to a faster shift than originally
anticipated to the new subscription-based business model," Monitise
said, adding that the full-year loss will also be bigger than
previously expected.
The latest warning comes after Monitise in March lowered its
full-year revenue growth forecast to 40% from 50%.
Monitise also said Tuesday that it expects 2015 revenue growth
of 25%, having in March said it would be at a lower rate than in
2014, without giving a figure.
Monitise, which was founded in 2003 and is yet to make a profit,
reported revenue of 72.8 million pounds ($124.8 million) for the
year ended June 30, 2013.
Visa Inc. had a 5.5% stake in Monitise on June 30, according to
Monitise's website, while Visa Europe, a separate company that
cooperates with Visa Inc, owns 6%.
-Shares at 1101 GMT, down 8 pence, or 16%, at 41 pence valuing
the company at GBP807 million.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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