6th Jul 2015 06:59
LONDON (Alliance News) - Monitise PLC, an AIM-listed mobile banking and payments company, cut its revenue guidance for its current financial year, in a trading update released on Monday.
Monitise, which designs the mobile apps banks make available to their customers, said it expects revenue for the year ended June 30 to be between GBP88 million and GBP90 million. That is lower than the range of GBP90 million and GBP100 million that the company had previously expected.
Elizabeth Buse, who became the company's sole chief executive when founder Alastair Lukies stepped down in March, said Monitise had delivered a "solid revenue performance" in a "difficult" year.
"Across the business, our cost disciplines have improved, we are taking the necessary tough decisions and our path to profitability is on track. Central to our growth plans is our new API-based platform launched in April, we have been delighted with its technical capability and the reception it has received from clients, which gives us confidence for the future," Buse said in a statement.
The company's earnings before interest, tax, depreciation and amortisation (EBITDA) loss is expected to show an improvement in the second half of the last financial year when compared to the first, thanks to lower operating and capital expenses.
The company reiterated that it wants to "drive towards" EBITDA profitability in the financial year to the end of June 2016.
Monitise said a review of the business is still ongoing, with "good progress" made on cutting costs and improving profitability.
By Samuel Agini; [email protected]; @samuelagini
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