Monitise Update

Following their AGM this week Monitise has clarified the scale of their operation now they have formally acquired US Clairmail. I think there is no doubt that mobile banking and mobile transactions will be the next great growth area in mobile and I believe this company is one of the best placed to deliver. Google with the wallet and others are front end services, this is backend and handles the bank side of transactions. The section bolded is my take on whats really important in the announcement. The combined customer growth seems to be over 40% pa.

  World-leading bank-grade Mobile Money platform servicing more than 15m registered customers, up from 13m when the acquisition was announced in March, 2012.

·     Enhanced partner and client base includes financial institutions and payments companies such as Visa Inc. and Visa Europe, FIS, Fifth Third Bank, U.S Bank, Royal Bank of Scotland, HSBC, Lloyds TSB, Co-operative Banking Group, Sallie Mae, PNC Bank, Frost National Bank, Standard Chartered, Permata Bank and HDFC Bank among others.

·     Combined business handling over a  billion transactions per annum, as well as payments and transfers worth US$15bn on a current weekly annualised basis.

·     In North America, Monitise now provides Mobile Money services to over 300 financial institutions and partners, including a third of the top 50 North American financial institutions and of these eight of the top 13.

·     Combined pro forma revenues for calendar 2012 expected to be close to US$100m.

·     Before the end of calendar 2013, Monitise expects the acquisition to be earnings accretive and the enlarged group to achieve EBITDA breakeven.

·     More than 600 technology, R&D and sales staff across key geographies including North America, Europe, the UK, Asia Pacific, Africa and India.

"We are now handling over 100 million transactions a month as consumers benefit from always-on mobile access to their finances. We remain on track for a strong trading year and will be further strengthened next year by our acquisition of Clairmail. As the only pure play Mobile Money specialist with the scale and experience to deliver live services across four continents, we are honoured to be working with some of the world's leading banks and payments companies," said Monitise Group Chief Executive Alastair Lukies.