September 5, 2013 / 8:36 AM / 4 years ago

UPDATE 1-Monitise loss widens as operating costs double

Sept 5 (Reuters) - Mobile banking technology company Monitise Plc reported a wider loss as operating costs doubled due to investments in technology and services and the company’s recent acquisition.

Shares in the company fell as much as 9 percent to 48.75 pence on the London Stock Exchange, making it one of the top percentage losers in early trade.

The stock touched a life high on Wednesday after the company announced two new contracts and Goldman Sachs raised its price target on the stock.

Monitise said loss before interest, taxes, depreciation and amortization widened to 19.3 million pounds for the year ended June 30 from 10.4 million pounds a year earlier.

Operating costs rose 116 percent to 74.5 million pounds from 34.4 million last year.

The company bought U.S.-based Clairmail in June for $173 million and Mobile Money Network and eMerit Solutions last December.

Monitise said on Thursday that it acquired Grapple Mobile Ltd, a European mobile innovation and design agency, for about 16.5 million pounds in stock as well as 22.9 million pounds in milestone payments.

The company said Peter Ayliffe, Visa Europe’s retiring CEO, would take over as non-executive chairman from Oct. 1.

Visa Europe is the third largest investor in Monitise with a 7.39 percent stake as of Dec. 27, 2012, according to Thomson Reuters data.

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