Could break into profit for first time
Shares in UK mobile banking specialist Monitise surged to a record high today (4th September 2013) ahead of a preliminary earnings update and details of new partnerships with IBM and a major credit union body.
More than 21 million shares were traded as the stock rose by nearly 15 per cent at one point to 53 pence on London’s Aim market, having opened at 48 pence.
Tomorrow Monitise gives a preliminary indication of its annual results in what’s described as its make-or-break year, in which it’s expected to reveal a profit for the first time.
Meanwhile it has revealed a major new deal with IBM to help key shareholder Visa Europe work better with its 3,000 member banks on improved, cloud-based mobile banking, payment and commerce services.
Visa itself, which boasts 466 million card holders in Europe and who already account for €1 in every €6.75 spent there daily, is predicting that by 2020 more than half of its transactions will be carried out on a mobile device.
Today, Monitise also announced a partnership with Ireland-based organisation, Card Services for Credit Unions (CSCU), helping it to offer a mobile banking solution to its 2,600 members.
Since its inception in 2003, Monitise has proved to be one of the stars of London’s junior market, with more than 350 financial institutions and over 23 million consumers worldwide.
Visa Europe is a major shareholder, having only last month agreed to buy 45.3 million more shares and taking its stake to 10.2 per cent.