LONDON (Alliance News) - Monitise PLC on Thursday said it is confident of breaking even in terms of earnings before interest, tax, depreciation and amortisation in the second half of its financial year, following a loss of about GBP20.0 million in the opening six months.
The company, which provides technology to meet the digital and mobile needs of financial institutions, said costs of GBP53.0 million in the first half are projected to fall by about GBP3.0 million per month in the second half, which ended June 30.
However, Monitise expects to book a non-cash impairment charge of roughly GBP160.0 million to GBP170.0 million for intangible non-cloud assets.
Lee Cameron, who became chief executive in September, said he has focused on "stabilising and restructuring the business and ensuring that we continue to develop our cloud proposition".
He said the company is confident of breaking even on an EBITDA basis in the second half thanks to the "combination of a significantly reduced cost base, tight management of our existing business units and increasing interest for our cloud capability".
Cameron took over Monitise at a tough time for the payments company. The former chief commercial officer succeeded Elizabeth Buse in September 2015, after the Visa Inc veteran quit to return to the US. She had become the company's sole chief executive only in March 2015, after founder Alastair Lukies stepped down and Monitise removed a 'for sale' sign from its lawn following a strategic review.
Monitise expects to report its 2016 interim results for the six months ended December 31 on February 12. First-half revenue is expected to amount to GBP33.0 million, Monitise said.
Shares in Monitise were up 4.4% at 2.35 pence on Thursday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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