Published on: February 15, 2013

Monetise enjoys growing end-user revenues

Mobile money technology and service provider Monitise has reported on another strong half, with revenues up 63% (22% organic, netting out the Clairmail acquisition) to £27.8m, helped by 164% growth (70% organic) in high margin end user fees to £14.2m. The company is starting to put its recent £124m (gross) equity fundraisings to good use, with R&D spending up 170% to £14.5m, driven by a seemingly endless queue of banks now wanting to implement mobile money solutions.

We view Monitise as one of the leading independent providers of mobile money technology and services globally, as evidenced by the company’s deep commercial relationships with leading financial institutions such as RBS, Visa Europe and Visa Inc. Aside from developing the technology for these partners, Monitise is also a commercial partner, with its share of end user revenues giving it significant exposure to the fast growing mobile money market. At 4.2x FY14 revenues, the company’s valuation is modest for a leading company in a strategically important new market.