Monitise Regulatory News (MONI)

14 December 2011

Monitise plc

H1 2012 PRE-CLOSE TRADING UPDATE

MONITISE REVENUE MOMENTUM ACCELERATES

REVENUE FOR H1 2012 APPROXIMATELY £15M

- ALMOST THREE TIMES H1 2011's £5.3M

- HIGHER THAN FY 2011's £14M

MORE THAN £35M OF CUSTOMER ORDERS CONTRACTED IN H1

- ORDER BOOK AT END-DECEMBER MORE THAN £75M

LONDON - Monitise plc (LSE: MONI), the technology company delivering mobile banking, payments and commerce networks worldwide, expects to announce first-half revenues nearly three times higher than a year ago when it publishes its interim results in February.

Revenues for the six months to 31 December 2011 are expected to be approximately £15m, compared with £5.3m in the same period a year ago. First-half FY 2012 revenue will also be higher than the £14m revenue generated in the entire 12 months to the end of June 2011.

The order book to the end of December 2011 has now passed £75m, with more than £35m of orders contracted during the first six months of FY 2012.

Profitability in live operations, which includes the UK, US and Global Accounts, is expected to show significant growth on levels achieved in the second half of 2011, which in turn grew strongly compared to the first half of last year. Gross margins are expected to be in line with the 62% generated in the first half of last year.

Monitise continues to invest in its future operations, technology platform and service delivery capability in line with its strategy to be the global leader in the mobile money marketplace. For the first half of FY 2012, the EBITDA loss (pre-exceptional item) is expected to be broadly in line with the loss in the equivalent period last year. Taking into account the estimated exceptional profit on the acquisition of Monitise Americas we expect to be close to breakeven EBITDA for the half year.

The continuing investment to maximise opportunities from the growing worldwide mobile banking, payments and commerce market is reflected in a strong uplift in customer demand for Monitise's services.

More than 5.5m customers have now signed up for Monitise's mobile money services, compared with 3m registered customers at the start of January 2011. The platform is processing 330m transactions a year, compared with 120m transactions per annum a year ago.

Customer log-ins for mobile money apps developed and deployed by Monitise are currently running at around 15m per month, compared with around 6m six months ago. Bank transfers and payments processed via the Monitise technology platform have risen to more than £1bn in the year to date. The corresponding figure for the whole of 2010 was £600,000.

"Our revenue performance and growing order book clearly demonstrate the momentum of the Monitise business as we head into calendar 2012, the year of the Olympics. We have seen via the increase in activity across our own technology platform how mobile banking has created an exciting and fast-growing new way for consumers to interact with their bank and manage money on their terms," said Monitise Group Chief Executive Alastair Lukies.

He added: "Worldwide interest and activity around mobile money is growing daily. Monitise has positioned itself as the only independent, interoperable, bank-grade mobile technology platform open to deliver services across any market to any device. That gives us a critical role to play as the mobile money market evolves. The market opportunity is huge and we will continue to invest to ensure we will retain our leadership role."

Monitise has recently formed several new strategic partnerships and deepened its existing partner relationships and expects this pattern of growth to continue.

In October, Visa Europe cemented its relationship with Monitise via the purchase of 70.5m new shares and the appointment of Visa Europe President and Chief Executive Peter Ayliffe to Monitise's Board of Directors. Monitise is working closely with Visa Europe to develop innovative, bank-grade, value-creating payment solutions for its member banks and partners.

In the UK last month, Monitise's joint venture, the Mobile Money Network, launched its new instant mobile checkout service, Simply Tap. Monitise developed the technology platform for the MMN, which is developing mobile services that bring together a network of retailers, advertisers, banks and media owners to provide consumers with a simple way to discover and buy goods and services using their mobile phone.

In August, Monitise entered a new five-year global strategic partnership with RBS Technology Services. Last month, RBS was awarded the "Mobile IT Innovation of the Year" award at the BCS & Computing UK IT Industry Awards while Monitise received a medal in the "Small Business Project of the Year" category for its contribution to the same mobile banking app development project.

Monitise has recently taken 100% ownership of its Americas business, giving it the ability to control the focus and direction of its activities in this key mobile money market. This is expected to yield significant operational and strategic benefits.

Monitise Group Chairman Duncan McIntyre said: "Monitise really has had an exceptional 2011 as a company. Trading for the group has never been better and we enter the calendar year 2012 with great momentum. The board will continue to review strategic options to ensure the value that we believe Monitise is creating is being recognised and maximised."

Monitise's interim results for the six months ending 31 December 2011 will be announced in February.

About Monitise

Monitise plc (LSE: MONI.L) is a technology company delivering mobile banking, payments and commerce networks worldwide with the proven technology and expertise to enable financial institutions and other service providers to offer a wide range of services to their customers in developed and emerging markets.

With live services in the UK, the US, India and Africa, the company is working with international partners to extend trusted and secure mobile banking, payment and commerce services in territories worldwide, including Europe, Asia Pacific and Latin America. Monitise has a global alliance agreement with Visa Inc. and a strategic partnership with Visa Europe. Other leading partners and clients include FIS, RBS, NatWest, HSBC, Lloyds Banking Group, First Direct, U.S. Bank, Ulster Bank, Standard Chartered Bank, Travelex, Vocalink, Vodafone, Orange, O2, T-Mobile, 3 UK, Research In Motion, Best Buy Europe, The Carphone Warehouse, First Eastern, Astra, JETCO and PCCW mobile.

More information is available at www.monitisegroup.com

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