(Adds details, analyst comments, share movement)
July 8 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
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
"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
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