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Mobile banking software provider Monitise has seen revenues increase but losses also rise as the company attempted to transform its business model in the past year.

Mobile banking software provider Monitise has seen revenues increase but losses also rise as the company continues to transform its business model.

In its results announcement for the year ending June 2014, Monitise reported revenue growth of 31 percent to £95.1 million, up from £72.8 million the previous year. 

However Ebitda losses increased in line with management expectations from £19.3 million in 2013 to £31.4 million. The company said that this was due to investment in product and sales, as part of a strategy to accelerate growth.

Monitise pointed to the a number of steps taken to overhaul its business during the past year, including a move to a subscription-led sales model and changes to senior personnel – such as the appointment of a former Visa exec Elizabeth Buse as joint CEO, the hiring the payment provider’s former CTO and global head of technology, and the departure of CIO Mike Keyworth. It also announced a major deal with IBM which will see hundreds of staff transferred to the services firm.

Monitise now expects to see revenue growth of at least 25 percent in 2015, and aims to become Ebitda profitable during its 2016 results.

“This past year was an important and transformational period for Monitise,” said Monitise co-CEO Alastair Lukies. “Our underlying performance reflects the proactive and bold steps we have taken to transition to a product-led subscription-based business operating in the global mobile banking, payments and commerce industry.”

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As part of its results announcement, Monitise unveiled a partnership with Santander to develop and deploy mobile banking services for the bank’s customers.

According to TechMarketView analyst Peter Roe, Monitise will continue to target relationships with the big banks in order to support future growth.

“A key focus will remain on the larger banks who are now bringing mobile into mainstream business and building more expansive strategies," said Roe. "The strategic partnership with Santander is a clear example of this process."

H e added: “The transition to “Monitise 2.0” and coping with rapid market changes will continue to test the management team, but they are making the right moves to capture a meaningful (and profitable) share of this important market.”