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Monitise losses widen – CEO steps down

Monitise has announced that Elizabeth Buse, chief executive, is leaving the company after it reported a full year pre-tax losses of £227.4m in 2015, up from £63.4m a year earlier.

Ms Buse had taken sole charge of the company in March, after Alastair Lukies, founder

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Monitise losses widen – CEO steps down

and then co-chief executive, left his position following a strategic review.

The company said the decision her was made “due to her desire for personal reasons to return to the United States”.

Deputy chief executive and chief commercial officer Lee Cameron has been appointed CEO, effective immediately. Adjusted Ebidta losses were £41.8m for the year ended 30 June 2015, but the large pre-tax loss was due to a number of unexpected factors. The company said:

Revenues also declined 6% to £87.9m, down from £95.1m last year.

Monitise has faced a difficult time recently, issuing four revenue warnings since last year. Once considered to be a high flyer within the UK technology scene, the company has faced falling revenues as it looks to transform its business model.

It is moving towards a subscription-based model, targeting resources on a single mobile money platform that all banks could use instead of relying on licence fees won by providing personalised services to financial institutions.

Due to these changes, Monitise insists that it should instead be judged by its performance next year, consistently issuing guidance that it on course to make a profit by 2016.

It reiterated this guidance, but said it no longer expected revenue growth in 2016, instead relying of continued declines in operating costs to meet this target.

Earlier this year, the company unveiled the results of a strategic review, saying it had rejected several takeover offers and would begin to implement a series of cost-cutting measures.

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