LONDON (Alliance News) - Monitise PLC on Friday said its pretax loss widened in the first half of its financial year, after the mobile payments company booked a non-cash impairment charge of GBP166.8 million against the value of its non-cloud intangible assets.
Pretax loss widened to GBP210.5 million in the six months ended December 31, from GBP58.4 million the corresponding period the prior year, as revenue fell to GBP33.4 million from GBP42.4 million.
The company said it expects to report positive earnings before interest, tax, depreciation and amortisation in the second half of the financial year.
First-half EBITDA loss narrowed to GBP20.2 million, from GBP30.8 million year on year.
"The essential transition to cloud-based services and sustainable recurring revenues, continues to be very challenging," Chairman Peter Ayliffe said.
Chief Executive Lee Cameron, who became chief executive in September, said the company has more work to do if it is to restore investor confidence in its business.
"Having taken the tough decisions and defined a clear path to take the business forward, Monitise is not just a leaner business; it is stronger and healthier," Cameron said.
The former chief commercial officer succeeded Elizabeth Buse as chief executive 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.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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