UK-based mobile money company Monitise saw a 31% increase in revenue over the year ending 30 June 2014, rising from £72.8m ($118m) to £95.1m. This is far from its previous prediction that revenue would grow around 50% for the year, writes Patrick Brusnahan

Despite this the company’s operating loss totalled at £31.4m for the year, compared to £19.2m at the same point last year, a rise in total loss of 64%. The higher loss was attributed to investments made in products and sales during the second year as part of Monitise’s strategy to accelerate user growth.

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The UK was the strongest geographical region for revenue growth, increasing by 54% and hitting £57.8m. Revenue in the Americas declined due to a decline in development and integration revenue.

Processed payments and transfers increased by over two-fold and reached $88bn, compared with $40bn at the end of the previous year.

The company expects a 25% growth in revenue by the end of the financial year in 2015, as well as a goal of being profitable by the end of the following year, a goal it has set itself previously and missed.

Its recent losses have been attributed to a faster move to a subscription model, with lower up-front revenue, from product license fees and professional services activities. The acceleration of that shift was announced in March of this year alongside a £109m placing with partner MasterCard.

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Monitise has furthered its partnership with IBM and will now connect to IBM hosting facilities. Based in North Carolina, the cloud-based infrastructure will allow Monitise greater ability to serve global processors, banks and mobile network operators from a US-based hub. Monitise will work with IBM data centres around the world according to its expanding customer bases’ needs.

This follows Monitise’s announcement of a global alliance with IBM, in August of this year, to allow Monitise’s technology to be utilised and sold as an IBM cloud-delivered solution in the business-to-business space. A team from Monitise’s UK development and integration business will be transferred to IBM as part of the process.

A strategic partnership with global bank Santander has been established to develop and deploy a series of mobile banking platforms to consumers, the firm also announced. The first service launches this week and follows their previous collaboration on Yapp, the bank’s Spanish mobile venture with CaixaBank and Telefonica, that now services over 200 businesses.

Alastair Lukies, co-chief executive, said: "This past year was an important and transformational period for Monitise. 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."