3rd Feb 2015 08:44
LONDON (Alliance News) - Mobile payments company Proxama PLC said Tuesday it expects to post a wider loss before interest, tax, depreciation and amortisation for 2014, although better than its expectations.
Proxama expects to post an Ebitda loss of GBP5.6 million, compared to an Ebitda loss of GBP3.1 million in 2013, on flat revenue of GBP800,000.
The company said in the last quarter of 2014 it had seen many customers and partners gearing up towards a roll-out planning of "contactless" payments during 2015. It reiterated its belief that consumer adoption of contactless and proximity marketing, and in turn "significant revenue growth" for Proxama, will occur towards the end of 2015.
The company said it expects to grow revenues in its Payments division "significantly" as it ups its marketing activities, launches new products, and increases its sales force in 2015. It also plans to expand into at least two new geographic markets. It believes the integration of Aconite Technology Ltd, which it acquired last December, will produce cost savings that will help bring the division to profitability before group overheads by the end of the year.
Proxama plans to continue seeking new partners in its Proximity Marketing Division, and to expand into additional UK cities. It expects to see its network of Bluetooth beacons to grow to around 10,000 in 2015, and to add over 20 new brand owners. It also expects the division to be profitable by the end of the year before group overheads.
Shares in Proxama are trading down 6.9% at 1.82 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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