Monitise Backs FY15 Revenue Outlook, To Issue Shares To Strategic Partners

(RTTNews) - Mobile Money - banking, paying and buying provider Monitise Plc (MONI.L) Thursday backed its guidance for the financial year 2015 and continues to see at least 25 percent revenue growth year-on-year. Fiscal year capex is estimated to be GBP35 to 45 million.

The company expects EBITDA profitable in FY 2016, while its longer-term guidance for FY 2018 is 200 million registered users at GBP 2.50 average revenue per user. The outlook for EBITDA margin is at least 30 percent, with a sustainable gross margin above 70 percent.

In addition, the company said in order to support the development and accelerated rollout of its global platform capabilities, it is in talks with Santander Group (SAN.L), Telefónica Group (TDE.L, TEF) and MasterCard Inc. (MA). The company also revealed that for the mobile money ecosystem growth Santander, Telefónica and MasterCard will invest GBP 49.2 million. Further, it will deepen commercial partnerships support Monitise's guidance for 2018.

Monitise also said that IBM will deploy its cognitive computing engine, Watson, to support a new technology platform. Monitise reiterates its current financial year and longer-term guidance as detailed below. Monitise also announced an agreed GBP 49.2 million in aggregate investment by the Strategic Partners and they have agreed to subscribe a total of 161,327,150 new ordinary shares of one pence each at 30.5 pence per share, the closing price per share on November 26. The New Shares with a lock up provision for six-months would represent 8.2% of the existing issued ordinary share capital. Santander will have 5.5 percent of the share capital and an enhanced share capital of 5.1 percent, while Telefónica will own 2 percent of enlarged share capita. MasterCard will hold 1.5 percent of the enlarged share capital. In connection with their subscription, Telefónica and Santander can nominate a single Non-Executive Director to the Board.