Monitise Plc (MONI)
ISR viewMonitise is leading the way in the provision of mobile banking services in the UK and, through partnerships with key leading financial players and retailers, looks likely to replicate that success in other markets. The valuation is relatively high, but is reflective of the company’s strategic potential.
Now generating significant transaction revenues
Monitise Plc | Download | Published on 27/08/2010Monitise’s full year results, which were well flagged at the recent fund raising, show strong transaction-led growth in revenues to £6m for the full year (£4.3m in the second half) and adjusted operating losses at £14.3m. The release provides more information on the progress of live US and UK operations towards break even. The company is now executing on the mobile money vision, whilst the £42m net cash on the balance sheet should help it maintain its early mover advantage as it invests in new ventures and in product R&D. We have maintained our forecasts, which were revised after the July fund raising. The shares have risen 32% since we initiated coverage in February 2010 and at 21.75p are close to our valuation of 23p, suggesting they are up with events, though the recent strengthening of the relationship with Visa shows Monitise’s strong strategic value.