LONDON (Alliance News) - Monitise PLC Thursday put itself up for sale as the payments company warned that it no longer expects to report double-digit revenue growth for the 2015 financial year, while its EBITDA loss is also likely to widen from that reported in the prior year.
Monitise, which had previously guided revenue to grow by at least 25%, now expects full-year revenue to be between GBP90 million and GBP100 million, compared with GBP95.1 million in its last financial year, as it reported a fall in first-half revenue to GBP42.4 million from GBP46.5 million.
Monitise expects its loss before interest, tax, depreciation and amortisation to widen to between GBP40 million and GBP40 million in the current financial year, before becoming EBITDA profitable in the next financial year.
For the full-year ended June 30, 2014, Monitise reported an EBITDA loss of GBP31.4 million.
Citing weakness in its share price, feedback from shareholders and developments in the payments industry, Monitise said it is launching a review of all its options in order to maximise value for shareholders. The company has called in investment bankers from Moelis & Company UK LLP to provide financial advice, while its nominated adviser and broker, Canaccord Genuity, will also help with the strategic review.
"The board believes that the company has an exciting future as an independent business. However it recognises that there may be other businesses which could leverage Monitise's capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today," Monitise said in a statement.
The strategic review will consider "corporate transactions and stock market listing options".
"We are successfully transitioning our business to a product-led, recurring revenue digital technology company," Alastair Lukies and Elizabeth Buse, the company's co-chief executives, said in a statement. "Partner and client support for this was underscored by major partnership updates during the first half, and the many services we developed and helped to launch across Europe, the Americas and Asia."
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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