Global mobile money specialist Monitise has seen its share price plummet more than 15% today after the company issued a trading update stating that its revenue growth this year would be lower than previously forecasted. Monitise said full year revenue would be between 31% and 33% (£95 million and £97 million), lower than the 40% it stated in March. This is the second time so far this year that Monitise has cut its revenue forecast from the original figure of 50%.
Monitise cuts its profit forecast again
Despite hiring well-known payments industry executives such as Peter Ayliffe and Elisabeth Buse, formerly of Visa, and making a series of acquisitions over the last couple of years, Monitise is struggling to turn potential into profit. Its decision to transform its business model from an upfront licence fee model into a subscription-based model is thought to have been the major reason for the second profit prediction cut. However, the company remains well-capitalised and continues to add clients to its roster.
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