UPDATE 1-Monitise cuts revenue outlook again; shares tumble

Tue Jul 8, 2014 4:25am EDT

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July 8 (Reuters) - Monitise Plc lowered its full-year revenue growth forecast for the second time this year as the mobile-banking technology company's faster-than-anticipated shift to a subscription-based model hurt near-term revenue.

Shares in the company fell as much as 22 percent, making them the biggest percentage losers on the London Stock Exchange on Tuesday morning.

The company said that revenue was hurt as a small number of contracts that were being renegotiated on a long-term subscription basis did not materialise before the year ended on June 30.

"The cut to guidance is somewhat disappointing, particularly since the company also closed two acquisitions during the period," Berenberg analysts said in a note to clients.

The company, which recently hired former Visa Inc executive Elizabeth Buse as co-CEO, now expects full-year revenue to be between 95 million pounds and 97 million pounds ($162 million to $165 million), or a growth of 31 to 33 percent, compared with its previous growth estimate of 40 percent.

Monitise expects revenue for 2015 to grow at least 25 percent and said it continued to consider listing its shares on the main London Stock Exchange.

Monitise processes mobile payments, purchases and transfers to the value of $71 billion annually. Its customers include Telefonica SA, Samsung Electronics Co Ltd, MasterCard Inc and Visa.

In March, Monitise cut its revenue growth estimate to 40 percent from 50 percent, citing a fall in near-term revenue growth as it started moving away from an upfront license revenue model.

Shares in the AIM-listed company were down 14.7 percent at 42 pence at 0819 GMT. They touched a low of 38.50 pence earlier in the session. ($1 = 0.5877 British Pounds) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)

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