Monitise Revises Revenue Projections Down … Again

Once known as one of Britain’s preeminent tech firms, Monitise has issued yet another revenue warning that estimates its full-year results for 2015 will be between £88M–£90M ($137M–$140M). In March, Monitise said it had expected revenues to be between £90M–£100M ($140M–$155.5M). The struggles with revenue seem to be the result of the firm’s evolving business model.

Monitise did affirm that despite the latest round down, the firm will once again be profitable by 2016 — although still anticipating a full-year loss on earnings before interest, taxation, depreciation and amortization.

It has been an undeniably tough year for Monitise. Share price has fallen almost 80 percent in the past 12 months, as investors have become cautious as the business model moves away from selling upfront licenses for software in favor of focusing on generating subscription revenue from a mobile money platform — aimed at banks, telecoms groups and retailers — that is usable for the sharing and analysis of data.

Co-CEO Alastair Lukies left the helm earlier this year as investors began fleeing Monitise’s new model. The firm also revealed that it has rejected several takeover offers.

But Monitise is not ready to sell out just yet and instead has implemented cost-cutting measures designed to streamline the business and focus operations in existing markets in Europe, the Middle East and North America.

“We have delivered a solid revenue performance in what has been a difficult year,” said Monitise’s Chief Executive Elizabeth Buse. “Across the business our cost disciplines have improved, we are taking the necessary tough decisions and our path to profitability is on track.”

The company is also seeking new strategic partnerships. Last week, the firm joined up with Santander (a key stakeholder in Monitise) on a fund designed to invest in financial technology companies.

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