moneyplus
- 09 Oct 2007 10:51
I dismissed this company as froth when I first looked at it. Since then the sp has doubled and continues to steadily rise. I looked again and when I saw the countries and contracts this firm is in---I was impressed and bought some to tuck away. anyone else bought in or interested?
HARRYCAT
- 22 Jul 2013 13:56
- 200 of 682
StockMarketWire.com
Monitise said Movida, its mobile payments joint venture with Visa, has won a deal with ICICI Bank, India's largest private sector bank.
The deal is to utilise Movida's mobile payments service for the Bank's customers.
The service will enable ICICI Bank payment card holders to pay bills, recharge prepaid airtime and buy cinema tickets from their mobile phone, anywhere, anytime.
It will be possible to access Movida either through a menu-based USSD mobile technology, or an Interactive Voice Response (IVR) in multiple languages. These options make the service easy to use and are widely available from any type of mobile phone, including basic models.
skinny
- 23 Jul 2013 07:21
- 201 of 682
Trading Update
Highlights
· Full-year 2013 revenue of at least £70m, compared to £36m in FY 2012, representing another year of substantial growth across the Monitise Group.
· Gross margins for the year above 70% with H2 particularly strong owing to a number of significant licence deals (FY 2012: 66%).
· Net cash at year-end of £85.6m.
· Over 23 million registered users to the Monitise platform.
· Further growth in live transactions with 2.4bn transactions on an annualised basis.
· Payments and transfers initiated via Monitise technology now worth $40bn on an annualised basis.
· Monitise partners and clients in the US include Visa Inc., FIS, American Savings Bank, Webster Bank, BMO Bank of Montreal, Fifth Third Bank, PNC, US Bank, Frost Bank, UMB, First Citizens, Alerus Financial, Veridian and Desert Schools Federal Credit Union.
HARRYCAT
- 23 Jul 2013 08:28
- 202 of 682
skinny
- 04 Sep 2013 07:17
- 203 of 682
Monitise and IBM mobile commerce partnership
Armonk, N.Y. and London, UK - 4 September 2013: IBM (NYSE: IBM) and Monitise (LSE: MONI) today announced an agreement that boosts Visa Europe's ability to provide its member banks with new mobile banking, payment and commerce services in the cloud for its customers. IBM will help Monitise extend and scale the adoption of these services with Visa Europe and develop additional services to bring to the mobile marketplace.
By supporting Monitise solutions with IBM's Smarter Commerce initiative, member banks from Visa Europe can accelerate the deployment of a broad range of mobile services on all types of devices. These mobile services enable its customers to more easily manage their money, make transactions and connect with relevant retailers from their mobile device.
Visa predicts that by 2020, more than half of its transactions will be carried out on a mobile device. Today there are 466 million Visa accounts in Europe accounting for one in every 6.75 euros spent daily. With these new enhanced mobile services provided by Monitise and IBM, Visa Europe will enable its 3,000+ member banks across 36 countries to increase their share of these transactions and accelerate the scale of their mobile offerings to meet evolving customer banking needs.
more...
skinny
- 04 Sep 2013 07:40
- 204 of 682
Goldman Sachs Conviction Buy 45.88 46.00 60.00 100.00 Reiterates
skinny
- 04 Sep 2013 11:43
- 205 of 682
In Auction +14.7%.
kimoldfield
- 04 Sep 2013 11:47
- 206 of 682
A decent rise at last. Hmm, that's what my wife said last night, she must be psychic! :o)
skinny
- 05 Sep 2013 07:06
- 207 of 682
Prliminary Results
Financial Highlights
· Full-year revenue more than doubled for the fourth year in succession, rising to £72.8m from £36.1m, an increase of 102%. Revenue growth was 50% on an organic basis(1).
· Gross margin increased to 76% from 66% in FY 2012, with user generated margin particularly strong, owing to a number of significant product licence deals.
· Group EBITDA(2) loss of £19.3m for the year (FY 2012: £10.4m), which takes into account the acquisition of Clairmail Inc., Mobile Money Network and eMerit Solutions, continued investment in scaling Monitise's platform technology and Group service delivery capabilities as services were launched across three continents.
· Adjusted3 loss for the year was £32.8m (FY 2012: £18.2m) and adjusted loss per share was 2.4p (FY 2012: 2.4p). Statutory Loss before tax in the year was £51.1m (FY 2012: £16.9m), with loss per share at 3.8p per share (FY 2012: 2.1p).
· Group net cash of £85.6m at 30 June 2013.
skinny
- 05 Sep 2013 15:21
- 208 of 682
Canaccord Genuity Buy 50.50 53.75 50.00 70.00 Reiterates
skinny
- 06 Sep 2013 07:09
- 209 of 682
kimoldfield
- 06 Sep 2013 07:31
- 210 of 682
Not bad at all! I've sent in my CV!
js8106455
- 06 Sep 2013 11:27
- 212 of 682
Watch: Monitise (MONI) - Preliminary results
Speakers
Alastair Lukies, CEO &
Brad Petzer, CFO
CLICK HERE
HARRYCAT
- 06 Sep 2013 13:39
- 213 of 682
Canaccord note:
"Monitise’s strong FY13 EBITDA performance puts it on a strong trajectory towards breakeven at the end of FY14. EBITDA jumped from -£14.7m in H1 FY13 to -£4.6m in H2 FY13. This half-on-half trend makes our FY14 -£2.2m EBITDA forecast appear conservative. However, we are aware of the effect of strong licence revenues in H2 FY13, seasonality and related investments. We remain confident in our forecast. We expect Monitise to see further momentum in licence sales. FY13 user generated revenue was boosted by £13.7m of licence sales due to the Visa Europe and Telefonica deals. Monitise continues to see more licence deals being signed in FY14. We expect Monitise to sustain this revenue line.
We believe interest in mobile money is accelerating again. Compared to a year ago, Monitise’s deal flow has broadened considerably by industry (banks, telcos, technology companies), product (mPOS, mbanking, mcommerce, mpayments, P2P, prepaid), geographies (North America, UK, Europe, Asia) and partners (systems integrators, technology companies, card issuers). We upgrade our DCF-based target price to 70p (previously 50p).
We are positive on the Grapple acquisition. We believe Grapple’s focus on design and user interface is a good complement to Monitise’s focus on infrastructure. Grapple has a blue chip client base that should offer cross-selling opportunities over the long term. Moreover, we believe Grapple’s services will be well received by Monitise’s large customer base."
david lucas
- 16 Sep 2013 22:32
- 215 of 682
Seems to go from strength to strength. My target of 70p seems more realistic. Does anyone else have a target price in mind as Goldman have a target of 100p.?
skinny
- 17 Sep 2013 15:46
- 216 of 682
New high today @62p.
david lucas
- 17 Sep 2013 16:18
- 217 of 682
Hello Skinny
A good article by Maik Schwabe on Sept 10. Just gives a few good reasons why Monitise is going to be getting bigger. It has the backing and scale!
Hope you find it interesting!!
I wrote an article back in June, discussing the tailwinds effecting mobile payment specialist Monitise (MONIF.PK) and pointing out the company's characteristics that make it the go-to-partner for m-commerce solutions.
Since then the stock advanced about 50% to the upside, breaking out of its multi-year trading range and marking new all-time highs. Especially last Wednesday´s move, on the back of two new co-operations, pushed the stock upwards, with trading volumes not seen in half a year.
Monitise announced a couple of new deals since June and also released its full year results last week, which I want to take a look at to see if my growth projections and investment opinion are still valid.
Recent Deals
Monitise and Lloyds (LYG) Commercial Banking Unit struck a co-operation to develop and offer mobile payment solutions for small merchants and start-ups in the UK, which will be launched in fall of this year.
A 5 year partnership with Telefonica (TEF) was announced, making Monitise the preferred technology provider for the telecom giants mobile payment projects.
Telefonica of course is probably the most globally diversified telecommunications operator on the planet with brands like O2, Movistar and e-plus; counting over 300 million subscribers in 24 countries, mainly across Europe and South America.
This deal is a major milestone for Monitise, expanding their reach particularly in the fast growing markets throughout Latin America. As I mentioned in my first article, emerging markets post a special opportunity for the mobile payment/banking industry. When whole populations are considered under-banked but savvy consumers and enthusiastic cellphone users at the same time, the potential for a quick adoption and a direct leap into the mobile commerce age is very high.
Growth rates and transaction volumes could easily outstrip its developed world counterparts, fueling Monitise´s growth rates as well.
Considering that there are roughly 24 million people transacting on Monitise´s platform through various financial institutions at the moment, the potential by gaining a mobile operator with 300 million subscribers becomes obvious.
India´s largest private bank, ICICI (IBN), struck a deal with Movida (the Joint Venture owned by Monitise and Visa (V)) to offer its mobile payment services to their own banking clients. The importance of this deal lie in the same neighborhood as the Telefonica deal: broadening the customer base in the fast growing emerging markets.
Desjardins, a Canadian financial cooperative, chose Monitise to develop its NFC (near field communication) offerings. Operations are planned to go live sometime in 2014, and even though this deal is a far smaller one than with ICICI and Telefonica, it still underlines Monitise´s expertise and reputation in building world class mobile payment ecosystems for its clients.
CSCU (a group of Credit Unions) decided to go with Monitise to provide its 2600 member unions with mobile banking solutions.
"Big-Blue" IBM and Monitise partnered to extend the reach and scale of services offered to Visa Europe´s partner banks.
Even though the last mentioned partnership already exists to some extend for quite some time now, combining Monitise´s solutions with IBM´s "Smarter Commerce Initiative" will enable Visa members to bring mobile applications quicker and to a wider range of mobile devices.
Furthermore, the company acquired Grapple Mobile, a specialized app developer for retailers; opening the doors for Monitise to offer advertising features within its platform.
Full year results for 2013
Last weeks numbers were a bittersweet pill to swallow for Monitise stockholders. On one hand, the company kept pace with its past revenue growth rates, doubling sales for the fourth year in a row from £36.1 million to £72.8 million and lifting gross profit by 133% from £24 million to £55.2 million. On the other hand, operating expenses also more than doubled from £34.4 million to £74.5 million, widening the EBITDA loss from £-10.4 million to £-19.3 million. Considering the original guidance to break even in the second half, the bottom line results are a huge miss.
Management explains the risen expenses with technology and staff spending, to anticipate the increased demands of those large deals announced, particularly the Telefonica partnership. Guidance for the next 12 months aims at a more than 50% revenue growth and a break even for the second half, basically pushing profit targets out exactly another year.
Being disappointed by the bottom line results and selling the stock would be a plausible reaction but would miss the big picture of recent developments; as you can read in my June article, Monitise´s story is one that will play out over the next five years and not the next five months.
One very important factor to keep in mind is the complexity of building a platform that is able to seamlessly connect merchants, banking institutions, phone operators and consumers safely and on such a huge scale. Whoever is leading the charge and technological development in this area will likely continue to draw in big customers in the future; therefore Monitise is setting the entry barriers for new system operators very high, as it takes years to build the confidence and reputation the company is enjoying right now.
During last weeks presentation, management mentioned that the only real competition they see out there are internal IT-divisions of big companies, playing with the thought of building their own platform instead of partnering with Monitise.
And this is probably the point where huge co-operations with the likes of Telefonica, IBM and Visa will move the needle and convince corporations to rather go with Monitise than doing it on their own.
If this trend continues without any major players building a comparable platform, Monitise could become the de facto standard in the space; a space that will continue to see explosive growth over the next 5 to 10 years.
And a lot of the presented numbers are indeed very encouraging if you are willing to look a little closer:
Take for example the fact that the share of user generated revenues made up 65% (£29.2 million) of total revenues in the second half, up from 37% (£7.1 million) a year ago and those revenues carry a stunning gross margin of 92% compared to a 53% margin in the development and integration segment.
Monitise posted a customer acquisition chart during its presentation, and after doing the calculations you end up with the following table about how much customers are actually transacting using the companies technologies:
In (A) Monitise had (B) registered clients, each of them making on average (C) transactions with an average value of (D) per year.
A B C D
In... # of clients avg. # of transactions per year avg. value of transaction
June 2010 2 million 60 *< 0.01$
October 2011 6.5 million 74 6.45$
Clairmail Acquisition
April 2012 13 million 96 11.2$
August 2012 17 million 98 12.05$
February 2013 20 million 100 15.5$
August 2013 24 million 125 16.67$
*I think we can disregard this number
The trend shows a clear rise in customer engagement and a continuous rise in $ transacted; and I would argue that the big wave of mobile payment engagement is still way ahead in the future, pointing to a steady exponential increase in user generated revenues that yield those juicy 92% gross margins for Monitise.
(click to enlarge)
Conclusion
Given the companies outstanding reputation, and list of partners I conclude that Monitise will continue to be perfectly positioned for a perfect storm of mobile commerce applications taking over our shopping and banking behavior.
With a cash position of around £85.6 million and basically zero debt, operations should be well funded if there are no bigger acquisitions around the corner.
The company also announced to move its stock listing from AIM, the UK`s exchange for young companies, to the LSE´s prime market at some point during 2014, which should give the stock an additional boost of institutional interest.
With fundamental tailwinds in place and the company being able to attract huge corporations (Telefonica and its 300+ million clients) to its platform, I continue to be a raging long term bull on Monitise´s stock.
The table of revenue and profit expectations I posted in my June article should still be valid for the years 2015 and 2016, as I expected profit margins for live operations to hover around the mid 80´s while in fact they stabilize in the 90´s and management also gave a 2014 guidance of at least 50% growth in revenue.
Therefore I will stick with my price target of 200 pence per share by 2016/2017.
The recent leap probably took a lot of short term potential off the table, and cautious investors who are well ahead on their position might take some profit at current levels, even though I will stay fully invested, as my investing horizon extends at least 2-3 years into the future.
Investors who would like to open or add to a position should be advised to take dips under 50 pence as an opportunity.
skinny
- 17 Sep 2013 16:26
- 218 of 682
Thanks - I'll have a read later.
david lucas
- 17 Sep 2013 20:40
- 219 of 682
Goldman raised its price target on the stock to 100p from 60p and it has been added to their conviction buy list. In addition to this, Berenberg have just initiated coverage on the stock with a 70p target price and Leon Cooperman CEO of Omega Advisors, a hedge fund with an equity portfolio of over $5.0 billion, stated on CNBC that one of his latest acquisitions was a stake in Monitise. Goldman expects Monitise to emerge as one of the biggest beneficiaries in the technology sector, benefiting from the ‘mega trend’ of mobile money. Goldman also highlighted that valuation remains attractive given the strong projected revenue growth over the next five years and the prospects of cash profitability after 18 months.