Monitise FY10 loss widens

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Poor Monitise. Even with the backing, and large investment made by payments giant Visa Inc. the mobile banking firm reported a wider loss for fiscal 2010 despite a 125% surge in revenues, as the company increased its investment in technology platform and incurred costs to support its international growth in the latter half.

Monitise’s loss before tax widened to £17.04 million from £13.13 million last year.

Loss attributable to the owners of the company was £16.77 million, compared with a loss of £13.13 million a year ago. However, on a per share basis, loss narrowed to 3.7 pence from 4.0 pence, reflecting higher share count.

During the year, the company’s administrative expenses climbed to £19.36 million from £13.0 million last fiscal. Operating loss widened to £14.28 million from a loss of £11.97 million a year ago.

Meanwhile, revenues surged 125% to £6.0 million from £2.7 million in the prior year period. This was due mainly to a rise in transactional revenues to £2.9 million from £0.5 million.

Transactional revenues are expected to continue to represent a growing proportion of total revenues in future years, Monitise noted – but once again failed to record what these figures actually account for.

During the year, Monitise acquired full ownership of its UK operations, Monilink – formerly a 50/50 joint venture with VocaLink. The business has been fully absorbed and rebranded as Monitise Europe.

Monitise currently has over 2 million registered customers, having more than doubled the number of registered customers since October 2009. The current growth rate, according to the group, is in the region of 100,000 per month.