25th Mar 2014 08:52
LONDON (Alliance News) - Mobile payments company Monitise PLC said Tuesday it priced its placing of 160.6 million new shares at 68.0 pence each, raising GBP109 million from partner MasterCard Inc and other institutional investors.
The placing price represents a discount of around 1.1% to the closing mid-market price of its shares Monday, Monitise said. It said the placing was oversubscribed. Shares in Monitise were trading up 5.5% at 72.50 pence Tuesday morning, shortly after market open.
Monitise had announced the placing late Monday, saying it intends to use the funds raised to shift towards a subscription model. However, it also lowered its revenue growth guidance for 2014.
The company said Monday that a third of the funds raised will be used on its identified platform spend, and depending on the timing of this spend, financial year 2014 capital expenses including capitalised research and development will be GBP20 million to GBP30 million, up from GBP14 million in 2013, and GBP30 million to GBP40 million in 2015.
The other two thirds will cover the ramp up of the operating cost that will come from the adoption of the new model.
It now expects its financial year 2014 revenue growth to be 40% compared to its previous guidance of 50%. This will lead to the second half of 2014's loss before interest, tax, depreciation and amortisation to be bigger than the in first half.
Monitise expects financial year 2016 revenue growth, but at a lower rate than 2014. In 2016 it expects to be EBITDA profitable, which it said is a year later than current sell-side analyst consensus. It expects revenue growth to accelerate strongly in 2016.
The company also laid out new five-year key performance indicator targets Monday. It expects registered users to grow from 28 million to 200 million by the end of the financial year 2018. Its average revenue per user target is at least GBP2.50 per year. It is targeting user generated revenue to represent around 80% of its total group revenue.
It is targeting a sustainable gross margin of above 70% with an EBITDA margin of at least 30%.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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