Monitise says its revenues will double

 
Steve Dinneen
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Monitise surged yesterday after the payments technology firm reinforced its strong outlook for the upcoming financial year, with revenues expected to double.

Full-year revenues are now expected to hit £14m, more than double the £6m reported last year.

It also said it forecasts an increase in operating profit and cash generation.

The firm, which delivers mobile banking, payments and commerce networks worldwide, announced earlier this year it will enter a five-year deal with Visa worth a minimum of £30m. It says its international operations, including ventures in India and Asia Pacific, are also performing strongly.

Monitise says it is now handling more than 10m bank transactions a month, including 100,000 account transfers and mobile payments a week, with an average monthly value of more than £100m.

Its full-year results will be published on 1 September.

Broker Canaccord upped its target price to 43p from 35p and said: “the trading update supports our bullish view on the mobile banking and payments market and Monitise’s global leadership position.

“Monitise’s live operations, which are the leading indicators of the long-term profitability of the group, may show impressive margins in the UK and global accounts [division].”

Chief executive Alastair Lukies said: “We continue to see very rapid growth across all areas of its business, both in the UK and internationally.

“The strength of our broadening partnerships and proven service delivery capabilities is a key validation that our strategy is working worldwide across mobile banking, mobile payments and mobile commerce.

TIMELINE | MONITISE

2007
Monitise lists on the Alternative Investment Market

2009
Visa takes 14 per cent stake

April 2010
Asia Pacific joint venture signed with First Eastern

May 2010
Signs Indian joint venture with Visa

Nov 2010
Mobile Money Network UK joint venture signed with Best Buy Europe and Charles Dunstone

Mar 2011
Nigeria pilot service launched

April 2011
Partners with JETCO in Hong Kong to launch mobile payments service

June 2011
Launches its first Mobile Money apps for Standard Chartered in India

July 2011
Registered customers approaching 4.5m, monthly mobile banking transfer values more than £100m.

Says revenues will double

Shares in the firm closed 8.7 per cent up at £37.50.