Struggling digital payments group Monitise Plc (LON:MONI) narrowed its losses in the first half of fiscal year 2017 as it slashed costs as part of its restructuring.
Loss before tax in the six months to 31 December 2016 was £7.1mln, compared to £210.5mln in the year-ago period, supported by cost savings, the non-recurrence of impairment charges taken in the previous year and lower provisions for onerous contracts.
In an effort to reduce costs, the company cut its workforce to 420 during the period from 627 the same time a year earlier.
Revenues fell to £28.2mln from £33.4mln, driven by declines in the Europe and Americas businesses.
However, the Monitise Content division, which provides digital payment platforms to online retailers, posted a jump in revenues to £7.0mln from £4.7mln. The growth was bouyed by an increase in visits to the UK voucher business myvouchercodes.co.uk and by a rise in revenue per visit.
For the full year to 30 June 2017, the company expects revenue will drop but it will be offset by cost savings achieved in the first half. Capital spending will be materially lower than 2016, Monitise said.
“Given this reduction and the stabilisation of the group, we are confident that we have sufficient funding in place to execute on our plans.”
Shares rose 1.53% to 2.66p around midday.