19 February 2014

MONITISE plc
Interim results for the six months to 31 December 2013

H1 FY 2014 REVENUE UP 67% ON H1 FY 2013
GROSS MARGIN MOMENTUM MAINTAINED: MARGINS AT 73% VERSUS 72% A YEAR AGO
VALUE OF TRANSFERS AND PAYMENTS ACROSS MONITISE PLATFORM RISES 133% TO $71BN
REGISTERED CUSTOMERS 28M, COMPARED WITH 20M A YEAR AGO
GROUP ON TRACK FOR REVENUE GROWTH OF APPROXIMATELY 50% IN FY 2014

LONDON - Monitise plc (LSE: MONI) (Monitise, the Company or the Group), a global leader
in Mobile Money solutions, announces its unaudited interim results for the six months ended 31
December 2013.

Financial Highlights

H1 FY 2014 revenue 46.5m, up 67% on H1 FY 2013.

Gross margin increased to 73% from 72% in H1 FY 2013, with user generated margin
particularly strong, owing to a number of product licence deals following recent
customer wins and renewals.

EBITDA
(1)
loss of 10.2m (H1 FY 2013 loss: 14.7m).

Adjusted loss after tax
(2)
of 16.4m (H1 FY 2013 loss: 21.0m) and adjusted loss per
share of 1.0p (H1 FY 2013 loss: 1.8p). Statutory loss after tax of 22.0m (H1 FY 2013 loss:
30.3m) with loss per share of 1.4p (H1 FY 2013 loss: 2.6p).

Group net cash of 66.2m as at 31 December 2013. Free cash outflow
(3)
of 20.3m
compared to 21.6m in H1 FY 2013.







(1)
EBITDA is defined as operating profit/loss before exceptional items, depreciation, amortisation, impairments and
share-based payment charges.
(2)
Adjustments comprise share-based payments, exceptional items, impairments and acquisition-related amortisation.
(3)
Free cash flow comprises cash used in operating and investing activities including capital expenditure and JV
funding. It excludes exceptional items and net cash acquired on acquisitions.



Outlook

We continue to see increasing demand for our services and positive momentum across
the Group and therefore see the need for continued investment as we look to maximise
the growth opportunities for Monitise. We reiterate our full-year guidance.

Expected revenue growth of approximately 50% in FY 2014.

FY 2014 gross margin to be maintained above 70%.

The Group sees multiple opportunities in all geographies both from direct sales channels
and our growing partner network.

A move to the London Stock Exchanges main market in calendar 2014 continues to be
considered.

Operational Highlights

Rising demand for Monitise-enabled Mobile Money services

o Processed payments and transfers now worth $71bn on an annualised basis,
compared with $31bn a year ago.
o Further growth in live transactions, with more than 3.4bn transactions on an
annualised basis, compared with 2bn a year ago.
o Registered end-user customers at 28m, compared with 20m a year ago.

Global footprint strengthened

o IBM publicly announced working with Monitise in September 2013, calling out
the development of new solutions to extend the adoption of Mobile Money
services across the two businesses client and partner networks.
o Monitise recognised with a 2014 IBM Choice Award for High Performing New
Business Partner at IBMs PartnerWorld Leadership conference in Las Vegas on
11 February 2014.
o Following Monitises appointment as the preferred mobile payments and
commerce technology partner for Telefnica Digital in FY 2013, preparation is
underway for a series of service roll-outs in geographies around the world.
o Industry recognition with CEB Tower Group and Javelin Research and Strategy
best in class vendor awards.

Growing global network of brands focused on new Monitise-developed solutions

o Europe
More than 30 Visa Europe member banks are now signed up to person-
to-person payment solutions developed by Monitise that allow Visa
cardholders to send money to each other using their mobile phones.
Monitise entered into a Mobile Money partnership with a leading UK
bank and financial services company.
A major mobile banking and payments contract was renewed with a
leading bank for a new minimum five-year term.
Grapple Mobile Ltd (Grapple) was acquired by Monitise in September
2013 and integrated into Monitise Create. The business has a broad
pipeline of new commercial opportunities across financial services and
other sectors such as sport, travel and entertainment in the UK, Europe
and internationally. Monitise Create is working with FIFA and Samsung
and has won its first contract with a leading US bank.
Mobile banking services for Clydesdale Bank and Yorkshire Bank
launched, generating strong customer adoption rates across iPhone,
Android and BlackBerry devices.

o US
Vantage 5.1, the hybrid version of Monitises technology platform in the
Americas, was released with positive customer feedback.
U.S. Bank began a pilot programme with Monitise to directly connect
consumers offline and online shopping experiences via smartphones
and tablets.
Monitise-developed NFC mobile payment capabilities launched by
Desjardins Group, Canadas leading cooperative financial group.
With Visa Inc., Monitise is working on a number of initiatives to support
its mobile strategies, including enhancements to the Visa DPS mobile
platform, Visa PayWave for contactless payments and a new mPOS
platform.
Partnership began with credit union CSCU that sees the Groups
technology being offered to more than 2,600 credit unions across North
America.

o India

Movida, which is Monitises 50/50 Joint Venture (JV) with Visa in India
contracted ICICI, Indias largest private bank, to make the Movida mobile
payments functionalities available to its customers. This follows
Movidas previously announced partnership with HDFC Bank, India-
second-largest private bank.

o Asia Pacific

Monitise secured full control of Monitise Asia Pacific Ltd, its former
50:50 JV with First Eastern Mobile Investments Ltd.
Monitises first Chinese language Mobile Money solution was launched
with the rollout of Easy TopUp for Bank of China (Hong Kong). Using
technology developed by Monitise, Bank of China became the first bank
in Hong Kong to provide such a service to its customers in cooperation
with Joint Electronic Teller Service Limited (JETCO), the ATM network
provider in Hong Kong.

Board appointments New Chairman and Non-Executive Director

o Appointment of Peter Ayliffe as Non-Executive Chairman.
o Steve Chambers and Victor Dahir appointed Non-Executive Directors.

Post period-end highlights

o Acquisition of Pozitron Yazilim A.., (Pozitron) in February 2014 to accelerate
Monitises Mobile Money capabilities in Turkey and the Middle East.
o Further to entering a three-year deal for multi-language mobile Point of Sale
services with OP-Pohjola Group, Finlands leading banking group, for its business
customers, new mPOS customer deals are under negotiation. Further
announcements expected in coming months regarding business wins in the UK
and Europe, including Germany, Italy, and internationally.
Monitise CEO Alastair Lukies said:

Mobile Money is growing and evolving as fast as ever and we have made solid progress in the
first half of 2014. The world has gone mobile and industries are moving to catch up with
consumer demand. As a trusted and non-threatening enabler, we are very pleased to be playing
our role in helping to reconnect brands to their customers and bringing together an ecosystem
of industries for the benefit of all.

During the half, we entered new relationships and deepened existing collaborations with leading
players across financial services, payment processing, mobile network operators, technology
businesses and retail. This helped to lift our revenue 67% to 46.5m and saw the value of
payments and transfers running across our platforms hit $71bn, more than double what they
were a year ago. But there is a lot further to travel. Large deals signed in 2013 are still in build
phase, and our work with channel partners are also yet to materially impact our top line.

This is now a very dynamic market and fast evolving industry and we have positioned ourselves
extremely well to cement a long-term and sustainable role in the way that society banks, pays
and buys for generations to come.

Monitise Chairman Peter Ayliffe commented:

In my first statement as Chairman, I am pleased to report that Monitise has delivered another
impressive performance in the first half of 2014. Banking, payments and commerce are being
transformed by digital and mobile technology. While the sectors that Monitise operates in are
large and some relatively complex, it is essentially about partnerships, robust infrastructure and
collaborations that create compelling benefits for all participants in the ecosystem. This is an
exciting time for the Group as it evolves to the next level in executing against its Mobile Money
growth strategy.

The Board continues to assess scope for further investment to capitalise on the significant
opportunity in our space and deliver value to our partners, clients and shareholders. Monitise
has made a positive start to the second half and we look to the future with confidence.

An analyst presentation will be held on 19 February, 2014 at 2.30pm GMT at the London Stock
Exchange, London, EC4M 7LS. A live webcast of the presentation will be available to view online
via investor relations on www.monitise.com. A replay facility will be accessible via
www.monitise.com/investor_relations within 24 hours of the results presentation.

An interview with Monitise CEO Alastair Lukies regarding the interim results is available to view
via www.monitise.com/investor_relations.

About Monitise

Monitise (LSE: MONI) is a world leader in Mobile Money - banking, paying and buying with a
mobile device. Leading banks, payments companies, retailers and mobile networks utilise
Monitise's technology platforms and services to securely connect people with their money.

Already 28 million consumers benefit from Monitises patented technology to 'bank anywhere',
'pay anyone' and 'buy anything', accounting for $71bn of payments, purchases and transfers
annually. More information is available at www.monitise.com.

For further information

Monitise plc
Alastair Lukies, Chief Executive Officer
Lee Cameron, Chief Commercial Officer
Brad Petzer, Chief Financial Officer
Mike Keyworth, Chief Information Officer

Investor Relations
Andrew Griffin, Haya Herbert-Burns
investorrelations@monitise.com

Media Relations
Gavin Haycock
Gavin.haycock@monitise.com

Canaccord Genuity
Simon Bridges, Cameron Duncan

FTI Consulting
Charles Palmer, Sophie McMillan




Tel: +44(0)20 3657 0900





Tel: +44(0)20 3657 0366



Tel: +44(0)20 3657 0362



Tel: +44(0)20 7523 8000


Tel: +44(0)20 7831 3113

Forward Looking Statements

This document includes forward looking statements. Whilst these forward looking statements
are made in good faith they are based upon the information available to Monitise at the date of
this document and upon current expectations, projections, market conditions and assumptions
about future events. These forward looking statements are subject to risks, uncertainties and
assumptions about the Group and should be treated with an appropriate degree of caution.



Business Review

The first half of our 2014 financial year was a period of strategic progress and strong financial
results. Our performance again underscores the merits of the Groups ongoing focus on creating
a best-in-class growing ecosystem of partners and clients using Monitises bank-grade platform
technology around the world. Our capabilities have been designed to enable financial
institutions working with us to leverage the high engagement realities of mobile banking
solutions and services into new, commerce-related revenue opportunities.

The 67% increase in first-half revenue to 46.5m was driven by user generated revenue
continuing to grow as a proportion of total revenue year on year.

The corporate and commercial benefits of our platform technology are reflected in the
increasing interest and engagement we are seeing around the world among both the clients we
serve and their customer audiences. Monitise is now processing 3.5bn transactions on an
annualised basis, compared with 2bn a year ago. Amid the growth in our partner network over
the period and broadening connections to new services, Monitise now has 28m registered
customers, compared with 20m a year ago. The scale of consumer engagement with the
solutions we enable for the businesses we work with is underscored by strong growth in the
value of payments and transfers initiated via our Mobile Money platform technology rising to
$71bn. This compares with $31bn a year ago and $50bn at the time of the Groups full-year
results in September 2013.

During the period the Group continued to invest strategically in technology and talent to help
further scale our business and meet the growing mobile commerce opportunities the industry
faces.

In September 2013, the Group announced the acquisition of European mobile innovation and
design agency Grapple, which has been integrated into Monitise Create. Bringing the business
into Monitise supported the growth of our creative capabilities and further reinforced our
leading position as a technology enabler at the heart of the Mobile Money ecosystem.

Towards the end of FY 2013, Monitise entered into a five-year agreement to become the
preferred mobile payments and commerce technology partner for Telefnica Digital. Since the
appointment, work has commenced on the forthcoming roll-out of a series of mobile payments
and commerce services in geographies around the world. More updates about the services will
follow at launch.

Earlier this month, Yankee Group predicted that the mobile economy is evolving at an even
faster rate than expected and that by 2017 it will be valued at $3.1 trillion, $200bn more than
the $2.9 trillion Yankee Group forecasted in October 2012. Such trends help explain why banks
are becoming more interested in unlocking the commercial benefits that mobile technology can
deliver. Amid this, U.S. Bank is working with Monitise to build and trial new product discovery
and shopping services via smartphones and tablets. U.S. Bank is the fifth-largest retail bank in
the US. Other highlights during the period include our collaboration with IBM to extend the
adoption of Mobile Money capabilities across the two businesses client and partner networks.
IBM is providing a broad range of software, technology services and consulting, including IBM
MobileFirst solutions, to help power Monitise mobile services for Visa Europe.

As an enabler at the heart of the Mobile Money ecosystem, our priorities are centred on
embracing new partners and developing new technology to make our network the network of
choice. We have a clear strategy to deliver growth through investment and innovation and have
laid deep and broad foundations upon which the Group will grow further. Together with our
partners, we are making payments smarter, faster and more convenient than ever before.

Industry Recognition

Monitise continues to set the pace in global innovation with respect to bringing to market world-
class solutions and capabilities. This is evidenced by the recognition the Group received across
the industry confirming our best-in-class approach to Mobile Money solutions.

In a CEB TowerGroup Mobile Banking Technology Analysis report in December 2013, Monitises
technology platform was given the highest available ranking across all categories for Customer
Experience, Interface Development, Integration and Management, and Enterprise Support. In a
Javelin Strategy & Research survey of the global mobile banking industry, Monitise secured top-
three positions in each of the surveys three categories Top Mobile Banking, Top Standard
Solution and Top Customised Solution. Monitise technology also scored top marks in security.
Significantly, Monitise was the only vendor to score 100% in this area, and in any category,
including alerting, a key differentiator in advanced mobile engagement strategies. Collectively,
this reinforces why Monitise is considered a best-in-class Mobile Money provider, as security
remains the number one issue that consumers care about with respect to mobile banking. In
addition, high engagement, driven by the opportunity alerting affords financial institutions as
they seek to reconnect with their customers, opens up the opportunity to move from banking to
higher value payments and commerce services.

Person-to-person (P2P) payment services Monitise developed for Royal Bank of Scotland Group
won the Best Innovation category at the Best Business Awards and Monitise was recognised
prominently in the latest Deloitte Technology Fast 50, a ranking of the 50 fastest-growing
technology companies in the UK. This marked the third year running that Monitise has
maintained a top 15 ranking, having been named third and 12th in 2012 and 2011 respectively.

In October 2013, the Group won the Best Peer-to-Peer Programme category at the Emerging
Payments awards for its Indonesian BlackBerry Messenger payments service, BBM Money. The
category recognised the best live P2P payment programmes and innovations around the world
and was open to any type of solution whether based on an open loop or closed network, and
across cards, mobile, or online.

We were also extremely honoured to have been recognised earlier this month as the winner of
an IBM Choice Award for High Performing New Business Partner.

Taken together, these results reinforce the confidence we have in our business and underscore
our drive to focus further on delivering value to our partners and clients.










Financial Review

The Group continued to deliver a strong performance in the period.

Revenue

Revenue was up by 67% to 46.5m in H1 FY 2014 from 27.8m in H1 FY 2013. User generated
revenue continued to grow as a proportion of total revenue, representing 59% of the total in H1
FY 2014, compared to 51% in H1 FY 2013. Total user generated revenue in the period was
27.3m and included a strong contribution of 11.1m from product licence revenue attributable
to recent customer wins and renewals. Product licence based deals include subsequent
subscription and/or transaction based revenue, as well as development and integration revenue.

Subscription revenue excluding licenses grew 14% to 16.3m in the period driven largely by
rising existing customer end-user count. The very large contracts signed in calendar 2013 have
not yet been converted to material new user growth and are still in development and integration
phases. Monitise is very focused on raising end-user count through new wins and raising
penetration at existing customers, in all geographies. We expect subscription revenue growth to
accelerate in the medium term.

Development and integration revenue increased by 41%, reflecting, in part, the first phases of
work on recent large contract wins including Telefnica Digital and Visa Europe.

Gross Margins

Gross margin increased to 73% (H1 FY 2013: 72%), driven by user generated revenue increasing
from 51% to 59% of total revenue. User generated margin reached 91% from 86% in H1 FY 2013
owing in part to strong product licence revenue. Development and integration gross margin was
46% in the period, compared to 58% in H1 FY 2013. The decline in development and integration
margin is largely due to the impact of certain large contracts, where bulk price commitments
were made on development work for the benefit of greater transaction revenue share. More
generally, there is a broad range of gross margin Monitise can generate depending on the
customer and type of work, therefore we expect development and integration margin to
continue to fluctuate around the 50% level depending on the mix and type of work undertaken
in any given period.

EBITDA

The Group EBITDA loss was 10.2m in H1 FY 2014 compared to 14.7m in H1 FY 2013. In line
with our strategy, we continue to invest to create value from the growing opportunities in the
Mobile Money market. The growth in operating costs to 44.0m in the period (H1 FY 2013:
34.8m) reflects a front-loaded increase in headcount and senior hires, as well as increased IT
and corporate costs, as we continue to scale the business to meet customer demand.

Other Movements

Depreciation & Amortisation

Depreciation was 1.9m in the period (H1 FY 2013: 1.5m). Amortisation of 7.4m (H1 FY 2013:
4.6m) includes amortisation of acquired intangible assets of 3.7m and capitalised
development costs of 2.4m.

Share-based Payments

The share-based payment charge of 3.1m in the period (H1 FY 2013: 2.1m) includes share-
based remuneration components relating to employee share option grants.

Exceptionals

1.0m of exceptional costs were recorded in the period largely reflecting acquisition related
items and litigation costs. A non-cash exceptional gain of 2.3m was recorded relating to the
acquisition of Monitise Asia Pacific Limited, which was the Joint Venture previously held with
First Eastern Investments Mobile Limited.

Loss Before Tax

Group loss before tax was 23.3m, compared to a loss in H1 FY 2013 of 29.7m.

Tax

A non-cash tax credit of 1.3m was recorded in the period (H1 FY 2013: 0.6m charge) relating
to unwinding of deferred tax recognised on acquired intangible assets.

Attributable Loss

The reported loss after tax for H1 FY 2014 was 22.0m (H1 FY 2013: 30.3m). On an adjusted
basis excluding share-based payments, exceptional items, impairments and acquisition-related
amortisation, attributable loss after tax was 16.4m (H1 FY 2013: 21.0m).

Loss Per Share

The basic and diluted loss per share was 1.4p (H1 FY 2013: 2.6p). On an adjusted basis excluding
share based payments, exceptional items, impairments and acquisition-related amortisation,
basic and diluted loss per share was 1.0p compared to 1.8p in H1 FY 2013.

Cash Flow and Funds

The Group ended the half year with a strong balance sheet, holding 66.2m of net cash at 31
December 2013 compared to 100.4m at 31 December 2012 and 85.6m at 30 June 2013. Free
cash outflow excluding exceptional items, funding and acquired cash was 20.3m, compared to
21.6m in H1 FY 2013.

Joint Venture funding, comprising investments and loans, totalled 1.2m in the year, down from
2.9m in H1 FY 2013. The reduction is driven by the buyout of two JVs (Mobile Money Network
in December 2012 and Monitise Asia Pacific in October 2013). Capital spending increased from
8.6m to 9.1m as the Group continued investing to take advantage of the mobile payment and
mobile commerce markets.

Capital spending included 1.0m (H1 FY 2013: 3.7m) of tangible asset purchases, and 8.1m (H1
FY 2013: 4.8m) of intangible asset purchases and capitalisation.

Post Balance Sheet Events

On 3 February 2014, the Group announced the acquisition of 100% of the issued share capital of
Turkey-based Pozitron, an internationally-recognised company delivering Mobile Money
solutions. Initial consideration was satisfied by the issue of 35,925,589 ordinary shares valued at
24m based on the closing share price of 66.5p on 31 January 2014. In addition, contingent
consideration of up to 36m may be payable in shares or cash, at Monitises discretion, based
upon the achievement of aggressive earn out targets over three years.

Operational Review

UK and Europe

Monitise provides enabling technology behind Visa Europe Mobile Money programmes including
the payment processors Personal Payments service. More than 30 banks, including RBS,
NatWest and Ulster Bank, as well as Allied Irish Bank which launched digital peer-to-peer
services in January 2014, have signed up to the service that the Group has developed for Visa
Europe member banks. We are also seeing strong growth in our RBS implementation of Visa
Europes Personal Payments and more launches are expected during the second half. In January,
Visa Europe reported that more than 1 in every 3 spent in the UK was now spent using a Visa
account and the drive to enable payments to be available through mobile devices continues at
pace.

On 31 December 2013, Monitise announced it had extended its commercial contract with a
leading financial institution and entered into a five-year Mobile Money partnership with a
leading UK bank and financial services company. As part of this, Monitise will design, build, and
manage new banking, payments and shopping services. The partnership has a contract value of
several million pounds. In line with Monitises strategic focus on moving further towards a user-
generated business model, the new partnership includes provisions for revenue sharing arising
from retail offers generated via the Groups growing mobile commerce network. More details
about the new partnership will follow in due course.

Monitises mobile banking services for Clydesdale Bank and Yorkshire Bank went live during the
first half. The banks, which entered a partnership with Monitise earlier in 2013, have seen strong
customer adoption rates for the apps across iPhone, Android and BlackBerry devices since
launch.

Post period-end, Monitise entered into a three-year deal with OP-Pohjola Group, Finlands
leading banking group, for multi-language mPOS services for its business customers. Further
announcements are expected in coming months regarding business wins in the UK and Europe,
including Germany, Italy, and internationally.

Monitise Create

The Grapple business, which was acquired in September 2013, has been integrated into Monitise
Create, a mobile innovation division within the Group that is working with leading businesses
and brands such as Whitbread and B&Q. Shortly after the acquisition, Monitise Create
announced it had helped to develop Samsung My Galaxy, an application designed to help users
get the most from their smartphones, including content and ticket offers. In December 2013,
Monitise Create moved into the football sector and helped to create the Official FIFA App for the
forthcoming 2014 FIFA World Cup Brazil. The FIFA app is expected to be the most downloaded
sports application ever. Monitise Create has also developed applications for Whitbreads
Premier Inn business to make it simpler and quicker for guests to book and manage hotel stays,
significantly increasing app conversion rates.

In December, market research business eConsultancy described Monitise Creates work for DIY
giant B&Q as one of the 10 most inspiring uses of mobile in retail, given how the app gives
customers a reason to go in-store to take advantage of exclusive discounts.

Monitise Create expects to announce a number of new business wins during the second half in
the finance, sport, travel and entertainment sectors in the UK, Europe and internationally and
has secured its first contract with a leading US bank.

US

During the period, Monitise enhanced its platform technology capabilities designed to deliver
the groups Bank Anywhere, Buy Anything and Pay Anyone products to US financial institutions.
Leading clients working with Monitise in the Americas include one third of the top 50 banks in
North America. The Groups growing business in the Americas has more than 12m registered
direct users from a variety of customers including First Interstate Bank, American Savings Bank,
Webster Bank, BMO Bank of Montreal, Fifth Third Bank, U.S. Bank, Frost Bank, UMB and First
Citizens, among others.

Monitise delivers mobile services to financial institutions in the Americas via its industry-leading
Vantage platform, which gives clients the option of having core mobile banking services run on
premise and the ability to layer on payments and commerce solutions via the cloud from a
growing network of premium content providers. The rollout of Vantage 5.1 during the first half
involved the release of technology based on an innovative modular architecture. This was
specifically designed to give financial institutions maximum flexibility in updating their mobile
offerings in a cost effective way that supports rapidly-changing business needs a hallmark of
the intensely competitive US marketplace.

This innovation platform has been coupled with a roadmap that provides a rapid release
capability designed to take advantage of new technological innovations that can help financial
institutions retain and attract new customers, and grow market share.

U.S. Bank is currently working on a pilot with Monitise to directly connect consumers offline and
online shopping experiences via smartphones and tablets. The see it, click it, buy it initiative is
expected to launch in the coming months, and supports the growing notion that consumers are
interested in shopping experiences and mobile commerce, and mobilising the process of product
discovery is becoming more important than the actual payment.

During the period, Monitise also announced a partnership with CSCU that sees the Groups
technology being offered to more than 2,600 credit unions across North America, and a deal
with Desjardins, the largest financial cooperative in Canada, to develop NFC-enabled payment
capabilities.

With Visa Inc., Monitise is working on a number of initiatives to support its mobile strategies.
These include functionality enhancements to the Visa DPS Mobile Card Management Services
designed to enable Visas bank partners to use Monitises mobile technology in a cost and time-
effective way. These enhancements will support iPhone and Android native apps, as well as
deployment of mobile remote deposit capture services later this year. During the period,
Monitise further enhanced the platform to support Canadian issuers looking to capitalise on the
growing mobile opportunity in the prepaid market.

Monitise is also working on Visa PayWave, Visas contactless payments application including
development support for the Android Kitkat OS with the ability to support Host Card Emulation.
Additionally, development work supporting the Visa V.me platform extends mobile wallet
services for smartphones enabling commerce acceptance to mobile devices. In payments,
Monitise advanced the development of a comprehensive mPOS white label solution that can be
delivered as a branded app across multiple iOS and Android devices, a solution Visa plans to
offer to select merchants later in the year.

Monitise is seeing strong demand from banks across the Americas to leverage the banking,
payments and commerce capabilities of the Group with a strong pipeline of further services
planned during the second half.

India

On 22 July 2013, Movida, Monitises mobile payments joint venture in India with Visa Inc.,
announced a deal with ICICI Bank, Indias largest private sector bank, to deploy Movidas mobile
payments service. The service will enable ICICI Bank payment card holders to pay bills, recharge
prepaid airtime and buy cinema tickets from their mobile phone. Soon to be implemented by
ICICI Bank for its payment card holders, the service is designed to operate across all mobile
networks using any payment card both Visa and non-Visa.

Asia Pacific

Monitise operates in Asia Pacific from a regional base in Hong Kong.

Shortly before the end of the first half, Monitise launched a Chinese language version of its
Mobile Money platform following the granting of regulatory approval by the Hong Kong
Monetary Authority. Easy TopUp offers a simple, secure and convenient real-time mobile
service to top up PCCW-HKT pre-paid SIM cards with payment taken direct from their bank
account, as opposed to purchasing vouchers from convenience stores. Bank of China (Hong
Kong) is the first bank in Hong Kong to provide such service to its customers in cooperation with
Joint Electronic Teller Service Limited (JETCO), the ATM network provider in Hong Kong. This was
the first joint initiative to be launched following the signing of a Memorandum of Understanding
with Bank of China (Hong Kong) in September 2012 and other banks among the 30 within the
JETCO network are expected to follow.

During the period, additional features for the BBM Money service developed by AGIT Monitise in
partnership with PermataBank for BlackBerry in Indonesia were rolled out. Updates included bill
pay and cardless cash withdrawals. Since the service upgrade there has been ongoing growth in
the use of value added services such as mobile phone top up and re-charging prepaid electricity
accounts.

On 21 October 2013, Monitise took full control of its Asia Pacific joint venture, Monitise Asia
Pacific Limited, which was a 50:50 joint venture with First Eastern Mobile Investments Limited, a
leading Hong Kong-based investment group controlled by Victor Chu.

With the live deployments in Indonesia and Hong Kong, the Groups focus is on driving usage
and working closely with partners on exploring opportunities to expand the new services into
other growth markets across the Asia Pacific region.

Board appointments

During the first half we further strengthened the Board of Directors with the appointments of
Peter Ayliffe as Non-Executive Chairman and Steve Chambers and Victor Dahir as Non-Executive
Directors.

Peter led Visa Europe as President and Chief Executive for seven and a half years and had served
as a Non-Executive Director on the Board of Monitise since November 2011 before assuming his
new duties on 1 October 2013, following his retirement from Visa Europe. He succeeded Duncan
McIntyre, who stepped down as Chairman, but continues as a special advisor to the company.

Steve Chambers and Victor Dahir both joined the Group as Non-Executive Directors.

Outlook

We continue to see increasing demand for our services and positive momentum across
the Group and therefore see the need for continued investment as we look to maximise
the growth opportunities for Monitise. We reiterate our full-year guidance.

Expected revenue growth of approximately 50% in FY 2014.

FY 2014 gross margin to be maintained above 70%.

The Group sees multiple opportunities in all geographies both from direct sales channels
and our growing partner network.

A move to the London Stock Exchanges main market in calendar 2014 continues to be
considered.


Alastair Lukies
Monitise Chief Executive Officer















Condensed Consolidated Statement of Comprehensive Income





Six months

Six months


ended

ended

Year ended

31 December

31 December

30 June

2013

2012

2013

(unaudited)

(unaudited)*

(audited)

Note 000

000

000
Revenue 4 46,541

27,819

72,796
Cost of sales

(12,685)

(7,773)

(17,588)






Gross profit

33,856

20,046

55,208

Operating costs before depreciation, amortisation, impairments and share-
based payments

(44,048)

(34,764)

(74,513)






EBITDA 13 (10,192)

(14,718)

(19,305)

Depreciation, amortisation and impairments

(9,285)

(6,078)

(16,147)

Operating loss before share-based payments and exceptional items

(19,477)

(20,796)

(35,452)

Share-based payments

(3,130)

(2,140)

(5,333)
Exceptional gain/(loss) on acquisition of subsidiary 10, 11 2,307

(1,444)

(1,444)
Other exceptional items 13 (984)

(2,767)

(4,210)






Operating loss

(21,284)

(27,147)

(46,439)

Finance income

149

163

390
Finance expense

(1,028)

(544)

(563)
Share of post-tax loss of joint ventures

(1,104)

(2,190)

(4,440)






Loss before income tax

(23,267)

(29,718)

(51,052)

Income tax

1,290

(614)

(251)






Loss for the period/year attributable to the owners of the parent

(21,977)

(30,332)

(51,303)

Other comprehensive (loss)/income that may be reclassified subsequently to profit or loss:

Currency translation differences on consolidation

(9,394)

(4,231)

2,468






Total comprehensive expense for the period/year attributable to owners of the parent (31,371)

(34,563)

(48,835)

Loss per share attributable to owners of the parent during the period/year
(expressed in pence per share):

basic and diluted 5 (1.4)

(2.6)

(3.8)

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to
the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.


Condensed Consolidated Statement of Financial Position



31 December

31 December

30 June

2013

2012

2013

(unaudited)

(unaudited)*

(audited)

Note 000

000

000
ASSETS

Non-current assets

Property, plant and equipment

7,370

8,490

8,049
Intangible assets 6 218,187

188,439

192,648
Investments in joint ventures

1,896

764

-
Deferred tax assets

-

885

44







227,453

198,578

200,741

Current assets

Trade and other receivables

21,644

11,437

17,363
Cash and cash equivalents

67,248

106,414

86,770







88,892

117,851

104,133






Total assets

316,345

316,429

304,874

LIABILITIES

Current liabilities

Trade and other payables

(40,679)

(34,899)

(36,942)
Provisions

(1,087)

(445)

(1,858)
Financial liabilities 7 (6,353)

(1,988)

(936)







(48,119)

(37,332)

(39,736)

Non-current liabilities

Investments in joint ventures

-

-

(498)
Other payables

(3,911)

(2,803)

(2,333)
Provisions

(5,985)

(6,574)

(6,308)
Financial liabilities 7 (7,449)

(4,592)

(880)
Deferred tax liabilities

(12,282)

(14,655)

(14,170)






Total liabilities

(77,746)

(65,956)

(63,925)






Net assets

238,599

250,473

240,949

EQUITY

Capital and reserves attributable to owners of the parent

Ordinary shares

16,427

15,414

15,630
Ordinary shares to be issued

-

347

-
Share premium

217,323

214,753

216,594
Foreign exchange translation reserve

(6,671)

(3,976)

2,723
Other reserves

155,148

128,753

130,747
Accumulated losses

(143,628)

(104,818)

(124,745)






Total equity

238,599

250,473

240,949

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to
the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.





Condensed Consolidated Statement of Changes in Equity

Share- Foreign

Ordinary Reverse based exchange

Ordinary shares to be Share Merger acquisition payment Accumulated translation

shares issued premium reserve reserve reserve losses reserve Total

000 000 000 000 000 000 000 000 000
Six months to 31 December
2012 (unaudited)*

Balance at 1 July 2012*

10,170 15,615 101,336 109,172 (25,321) 10,458 (76,533) 255 145,152
Loss for the year

- - - - - - (30,332) - (30,332)
Other comprehensive loss

- - - - - - - (4,231) (4,231)


Total comprehensive loss

- - - - - - (30,332) (4,231)

(34,563)
Issue of ordinary shares (net of
expenses)

5,210 (15,268) 113,142 32,405 - - - - 135,489
Recognition of warrants

- - - - - - 1,965 - 1,965
Recognition of share-based
payments

- - - - - 2,121 - - 2,121
Exercise of share options

34 - 275 - - (82) 82 - 309


Balance at 31 December 2012*

15,414 347 214,753 141,577

(25,321) 12,497

(104,818) (3,976) 250,473
Twelve months to 30 June 2013
(audited)

Balance at 1 July 2012

10,170 15,615 101,336 109,172 (25,321) 10,458 (76,533) 255 145,152
Loss for the year

- - - - - - (51,303) - (51,303)
Other comprehensive income

- - - - - - - 2,468 2,468


Total comprehensive loss

- - - - - - (51,303) 2,468

(48,835)
Issue of ordinary shares (net of
expenses)

5,227 (15,615) 113,323 32,742 - - - - 135,677
Recognition of warrants

- - - - - - 1,965 - 1,965
Recognition of share-based
payments

- - - - - 4,822 - - 4,822
Exercise of share options

233 - 1,935 - - (1,126) 1,126 - 2,168


Balance at 30 June 2013

15,630 - 216,594 141,914

(25,321) 14,154

(124,745) 2,723 240,949

Six months to 31 December
2013 (unaudited)

Balance at 1 July 2013

15,630 - 216,594 141,914 (25,321) 14,154

(124,745) 2,723 240,949
Loss for the year

- - - - - - (21,977) - (21,977)
Other comprehensive loss

- - - - - - - (9,394) (9,394)


Total comprehensive loss

- - - - - - (21,977) (9,394)

(31,371)
Issue of ordinary shares

492 - 195 24,538 - - - - 25,225
Recognition of share-based
payments

- - - - - 2,896 - - 2,896
Exercise of warrants

62 - 65 - - - 61 - 188
Exercise of share options

243 - 469 - - (3,033) 3,033 - 712


Balance at 31 December 2013

16,427 - 217,323 166,452

(25,321) 14,017

(143,628) (6,671) 238,599

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to the Monitise
Americas Inc. and Mobile Money Network Limited acquisitions.





Condensed Consolidated Cash Flow Statement


Six months ended

Six months ended


31 December

31 December

Year ended

2013

2012

30 June 2013

(unaudited)

(unaudited)*

(audited)

Note 000

'000

000
Cash flows used in operating activities

Cash used in operations 8 (9,972)

(9,628)

(17,063)
Exceptional expenses

(1,172)

(4,371)

(6,733)
Net income tax paid

(7)

(193)

(462)






Net cash used in operating activities

(11,151)

(14,192)

(24,258)

Cash flows used in investing activities

Cash acquired on acquisition of subsidiaries net of cash consideration paid 1,554

749

749
Investments in joint ventures

(1,238)

(1,533)

(2,590)
Loan to joint venture parties

-

(1,400)

(1,400)
Interest paid

(151)

(299)

(339)
Interest received

170

33

237
Purchase of property, plant and equipment

(973)

(3,748)

(5,071)
Purchase and capitalisation of intangible assets

(8,123)

(4,807)

(9,087)






Net cash used in investing activities

(8,761)

(11,005)

(17,501)

Cash flows from financing activities

Proceeds from issuance of ordinary shares (net of expenses)

60

117,286

117,267
Share options exercised

712

309

2,168
Proceeds from long-term borrowings

-

139

139
Repayments of long-term borrowings

-

(5,379)

(10,376)
Repayments of finance lease liabilities

(123)

(64)

(191)






Net cash generated from financing activities

649

112,291

109,007






Net (decrease)/increase in cash and cash equivalents

(19,263)

87,094

67,248

Cash and cash equivalents at beginning of the period/year

86,770

19,566

19,566
Effect of exchange rate fluctuations on cash held

(259)

(246)

(44)






Cash and cash equivalents at end of the period/year

67,248

106,414

86,770

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to
the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.






Notes to the Condensed Consolidated Financial Statements for the six months ended
31 December 2013

1. General Information

Monitise plc the Company is a public limited company incorporated and domiciled in England and Wales, whose shares are publicly
traded on the Alternative Investment Market (AIM) of the London Stock Exchange. The address of the registered office is provided at
the end of this document. Monitise plc and its subsidiaries are together referred to as the Group throughout this financial
information.

The condensed consolidated interim financial information was approved for issue by the Board on 18 February 2014.

This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of Section 434
of the Companies Act 2006. Statutory accounts for the year ended 30 June 2013 were approved by the Board on 4 September 2013
and delivered to the Registrar of Companies. The Auditors report on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

The condensed consolidated interim financial information is neither audited nor reviewed by the auditors and the results of
operations for the six months ended 31 December 2013 are not necessarily indicative of the operating results for future operating
periods.

2. Summary of Significant Accounting Policies

2.1. Basis of preparation

The condensed consolidated interim financial information has been prepared under the measurement principles of IFRS, using
accounting policies and methods of computation consistent, except as noted below, with those set out in the Companys 2013
Annual Report and Accounts. The financial statements have been prepared under the historical cost convention. As permitted by
AIM rules, the Group has not applied IAS 34 Interim reporting in preparing this interim report.

Based on projections prepared of the Groups anticipated future results, the Directors have reasonable expectations that the Group
will have adequate resources to continue in existence for the foreseeable future. Therefore the Directors continue to adopt the going
concern basis in preparing this financial information.

The comparatives for the six months ended 31 December 2012 have been updated to include revised acquisition accounting and final
fair values of intangible assets, other balance sheet items and goodwill arising on the Monitise Americas Inc. and Mobile Money
Network Limited acquisitions.

2.2. Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2013, as
described in those annual financial statements. The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year beginning 1 July 2013, but are not currently relevant for the Group, or have had no
material impact:

IAS 19 Employee benefits (revised 2011)
Amendment to IAS 12 Income taxes
IFRS 13 Fair value measurements
Annual improvements 2011
IFRS 1 First-time adoption of IFRS (amendments 2012)
IFRS 7 Financial instruments: Disclosures (amendments 2011)

The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial
year beginning 1 July 2013 and have not been early adopted:
Effective date (subject to EU endorsement)
IFRS 10 Consolidated financial statements 1 January 2014
IFRS 11 Joint arrangements 1 January 2014
IFRS 12 Disclosure of interests in other entities 1 January 2014
Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) 1 January 2014
IFRIC 21 Levies 1 January 2014
IAS 27 Separate financial statements (revised 2011) 1 January 2014
IAS 28 Investments in associates and joint ventures (revised 2011) 1 January 2014
IAS 32 Financial Instruments: Presentation (amendments 2011) 1 January 2014
IAS 36 Impairment of assets (amendments 2013) 1 January 2014
IAS 39 Financial instruments: Recognition and measurement (amendments 2013) 1 January 2014
IFRS 9 Financial instruments 1 January 2015
Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) 1 January 2014
Annual improvements 2012 and 2013 1 July 2014
Amendment to IAS 19 Employee benefits 1 July 2014
Notes to the Condensed Consolidated Financial Statements (continued)

2. Summary of Significant Accounting Policies (continued)

The Directors do not believe that the adoption of IFRS 11, Joint arrangements will have a material impact on the presentation of the
Groups results due to a change in accounting policy in 2011/12. The Group is currently assessing the impact on its results, financial
position and cash flows of the other standards listed above.

The Group continues to monitor the potential impact of other new standards and interpretations which may be endorsed by the
European Union and require adoption by the Group in future accounting periods.

3. Critical Accounting Estimates and Judgements

The preparation of the financial statements requires the Group to make estimates, judgements and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. The
Directors base their estimates on historical experience and various other assumptions that they believe are reasonable under the
circumstances, the results of which form the basis for making judgements about the carrying value of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

In the process of applying the Groups accounting policies, management has made a number of judgements and estimations, which
have been consistent with those set out in the Companys 2013 Annual Report and Accounts.

a) Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services provided within the
Groups ordinary activities, net of discounts and sales taxes. It comprises user generated revenues, product licences and
development and integration services.

User generated revenue relates to revenue generated from all types of end-user activity and may take various forms including per
user fees, click fees, commissions and revenue share, and includes associated managed services. This revenue is recognised as the
services are performed.

Product licences are sales where the customer has the ability to exploit the licenced functionality upon delivery and include both
certain term-based and perpetual licences. These licence revenues are recognised as a sale of a good once all of the below
recognition criteria have been met:
the Group has transferred to the buyer the significant risks and rewards of ownership of the licence;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership
nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Group; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue relating to development and integration services contracted on a time and materials basis is recognised as the services are
performed. Revenue relating to development and integration services identified as a service contract is recognised on a straight-line
basis. Development and integration service revenue delivered under a fixed price contract is recognised on a percentage-of-
completion basis, based on the extent of work completed as a percentage of overall estimated project cost, when the outcome of a
contract can be estimated reliably. Determining whether a contracts outcome can be estimated reliably requires management to
exercise judgement and estimates are continually reviewed as determined by events or circumstances. Provision is made as soon as
a loss is foreseen.

Typically, a number of the above elements may be sold together as a bundled contract. Revenue is recognised separately for each
component if it is considered to represent a separable good or service and a fair value can be reliably established. The Group may
derive fair value for its services based on a reliable cost estimate plus an appropriate market-based margin. Where a product licence
is included within a bundled arrangement, the residual value of the contract is ascribed to the product licence after a fair value has
been allocated to all other components.
Amounts which meet the Group revenue recognition policy which have not yet been invoiced are accounted for as accrued income
whereas amounts invoiced which have not met the Groups revenue recognition criteria are deferred and are accounted for as
deferred income until such time as the revenue can be recognised. Management makes an assessment of the certainty of any
accrued revenue amounts in determining how much revenue to recognise.

b) Share-based payments

Judgement and estimation is required in determining the fair value of shares at the date of award. The fair value is estimated using
valuation techniques which take into account the awards term, the risk-free interest rate and the expected volatility of the market
price of the Companys shares.





Notes to the Condensed Consolidated Financial Statements (continued)

3. Critical Accounting Estimates and Judgements (continued)

c) Going concern

The Directors have prepared projections of the Groups anticipated future results based on their best estimate of likely future
developments within the business and therefore believe that the assumption that the Group is a going concern is valid. The financial
information has therefore been prepared on the going concern basis.

d) Development costs

The Group has capitalised internally generated intangible assets as required in accordance with IAS 38. Management has assessed
expected contribution to be generated from these assets and deemed that no adjustment is required to the carrying value of the
assets. The recoverable amount of the assets has been determined based on value in use calculations which require the use of
estimates and judgements. Management has also reviewed the assets for impairment and deemed that no impairment is required.

e) Provisional acquisition accounting and goodwill

Where the Group undertakes business combinations, the cost of acquisition is allocated to identifiable net assets and contingent
liabilities acquired and assumed by reference to their estimated fair values at the time of acquisition. The remaining amount is
recorded as goodwill. Identifiable net assets are valued using external valuation providers and involve an element of judgement
related to projected results. Fair values that are stated as provisional are not finalised at the reporting date. Final fair values may be
determined that are materially different from the provisional values stated.

f) Impairment of assets

IFRS requires management to undertake an annual test for impairment of indefinite lived assets, including goodwill, and, for finite
lived assets, to test for impairment if events or changes in circumstances indicate that the carrying amount of an asset may not be
recoverable.

Impairment testing is an area involving management judgment, requiring assessment as to whether the carrying value of assets can
be supported by the net present value of future cash flows derived from such assets using cash flow projections which have been
discounted at an appropriate rate. In calculating the net present value of the future cash flows, certain assumptions are required to
be made in respect of highly uncertain matters including managements expectations of growth and discount rates. Changing the
assumptions selected by management could significantly affect the Groups impairment evaluation and hence results. The Groups
review includes the key assumptions related to sensitivity in the cash flow projections.

g) Deferred tax

Deferred tax assets and liabilities require management judgement in determining the amounts to be recognised. In particular,
judgement is used when assessing the extent to which deferred tax assets should be recognised, with consideration given to the
timing and level of future taxable income.

h) Provisions

Management uses judgement to estimate the consideration required to settle the present obligation at the end of the reporting
period, taking into account the risks and uncertainties surrounding the obligation.

i) Fair value estimation for financial instruments

The fair value of financial instruments that are not traded in an active market, for example over-the-counter derivatives and
contingent consideration liabilities, is estimated using valuation techniques. Management uses judgement to select a variety of
methods and make assumptions that are based on market conditions existing at the end of the reporting period as well as internal
information regarding a variety of probable outcomes.

Notes to the Condensed Consolidated Financial Statements (continued)

4. Segmental Information

Reportable segment
Monitises operating segment is reported based on how the Group is structured and the financial information provided to the chief
operating decision maker. The Board of Directors is the Groups chief operating decision maker. Management has determined the
operating segment based on the information reviewed by the Board of Directors for the purposes of allocating resources and
assessing performance.

Since the acquisition of Monitise Americas Inc. in June 2012, the Group has transitioned to operating as a single operating segment
worldwide. The Monitise plc Board of Directors considers revenue, cost of sales, operating costs, exceptional costs and a measure of
adjusted EBITDA of the Group as a whole when assessing the performance of the business and making decisions about the allocation
of resources. In addition, the Board reviews revenue split by products and geographies to assist with the allocation of resources.
Accordingly, the Group had one reportable operating segment for the six months ended 31 December 2013. The operating segment
derives revenues from delivering mobile banking, payments and commerce networks worldwide. The results from continuing
operations, in the format as provided to the Board, have not been reproduced and can be found in the Condensed Consolidated
Statement of Comprehensive Income.

Entity-wide disclosures


Six months ended

Six months ended


31 December

31 December

Year ended

2013

2012

30 June 2013

(unaudited)

(unaudited)

(audited)

000

000

000
Product licences 11,072

-

13,744
Subscription and transaction revenue 16,264

14,216

29,649






User generated revenue 27,336

14,216

43,393

Development and integration services 19,205

13,603

29,403






Total 46,541

27,819

72,796

Products and services are sales where the customer has the ability to exploit the licensed functionality upon delivery and include
both certain term-based and perpetual licences.


5. Loss per Share


Basic and diluted

Basic loss per share is calculated by dividing the loss attributable to owners of the parent by the weighted average number of Ordinary shares in issue
during the year. As the Group is loss-making, any share options in issue are considered to be 'anti-dilutive'. As such, there is no separate calculation
for diluted loss per share. Reconciliations of the loss and weighted average number of shares used in the calculation are set out below:

Six months ended

Six months ended

Year ended
31 December

31 December

30 June
2013

2012

2013
(unaudited)

(unaudited)*

(audited)

000

000

000
Loss for the period / year (21,977)

(30,332)

(51,303)
Weighted average number of ordinary shares in issue ('000) 1,608,562

1,152,882

1,350,300






Basic and diluted loss per share (pence) (1.4)

(2.6)

(3.8)

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating
to the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.

Notes to the Condensed Consolidated Financial Statements (continued)


6. Intangible Assets

Purchased


Intellectual

and acquired Capitalised


Customer property Acquired software development


Goodwill contracts rights technology licences costs Total

'000 '000 '000 '000 '000 '000 '000
As at 31 December 2013 (unaudited)

Cost:

As at 1 July 2013 137,663 27,666 222 18,625 6,189 18,882 209,247
Additions - - - - 2,821 4,263 7,084
Acquisitions (notes 10, 11) 35,315 2,579 - - - - 37,894
Exchange differences (9,589) (2,072) - (947) (16) (84) (12,708)
Disposals - - - - (193) - (193)
As at 31 December 2013 163,389 28,173 222 17,678 8,801 23,061 241,324

Accumulated amortisation:

As at 1 July 2013 - 4,290 215 3,080 2,303 6,711 16,599
Charge - 1,954 7 1,731 1,249 2,449 7,390
Exchange differences - (417) - (227) (8) (7) (659)
Disposals - - - - (193) - (193)
As at 31 December 2013 - 5,827 222 4,584 3,351 9,153 23,137

Net book value

As at 31 December 2013 163,389 22,346 - 13,094 5,450 13,908 218,187

As at 30 June 2013 (audited)

Cost:

As at 1 July 2012 118,168 26,965 222 11,920 3,993 12,263 173,531
Additions - - - - 2,288 6,586 8,874
Acquisitions 16,638 - - 6,422 264 - 23,324
Exchange differences 2,857 701 - 283 - 33 3,874
Disposals - - - - (356) - (356)
As at 30 June 2013 137,663 27,666 222 18,625 6,189 18,882 209,247

Accumulated amortisation:

As at 1 July 2012 - 737 183 - 1,184 1,839 3,943
Charge - 3,441 32 3,004 1,475 3,896 11,848
Exchange differences - 112 - 76 - 3 191
Impairment - - - - - 973 973
Disposals - - - - (356) - (356)
As at 30 June 2013 - 4,290 215 3,080 2,303 6,711 16,599

Net book value

As at 30 June 2013 137,663 23,376 7 15,545 3,886 12,171 192,648












Notes to the Condensed Consolidated Financial Statements (continued)


6. Intangible Assets (continued)

Purchased


Intellectual

and acquired Capitalised


Customer property Acquired software development


Goodwill contracts rights technology licences costs Total

'000 '000 '000 '000 '000 '000 '000
As at 31 December 2012 (unaudited)*

Cost:

As at 1 July 2012 118,168 26,965 222 11,920 3,993 12,263 173,531
Additions - - - - 1,528 4,038 5,566
Acquisitions 16,638 - - 6,422 264 - 23,324
Exchange differences (4,197) (839) - (433) (5) (1) (5,475)
As at 31 December 2012* 130,609 26,126 222 17,909 5,780 16,300 196,946

Accumulated amortisation:

As at 1 July 2012 - 737 183 - 1,184 1,839 3,943
Charge - 1,693 16 1,232 517 1,139 4,597
Exchange differences - (16) - (17) - - (33)
As at 31 December 2012* - 2,414 199 1,215 1,701 2,978 8,507

Net book value

As at 31 December 2012* 130,609 23,712 23 16,694 4,079 13,322 188,439


* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to
the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.


7. Financial Liabilities



31 December

31 December

30 June

2013

2012

2013

(unaudited)

(unaudited)*

(audited)

000

000

000
Due within one year

Short-term loans -

1,111

-
Contingent consideration and other financial liabilities at fair value
through profit or loss 6,119

608

682
Finance leases 234

269

254






Financial liabilities due within one year 6,353

1,988

936

Due after one year

Long-term loans -

3,889

-
Contingent consideration 6,675

-

-
Finance leases 774

703

880






Financial liabilities due after one year 7,449

4,592

880

Total financial liabilities 13,802

6,580

1,816

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating
to the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.







Notes to the Condensed Consolidated Financial Statements (continued)

8. Reconciliation of Net Loss to Net Cash Used in Operating Activities


Six months ended

Six months ended

31 December

31 December

Year ended
2013

2012

30 June 2013

(unaudited)

(unaudited)*

(audited)

000

'000

000
Loss before income tax (23,267)

(29,718)

(51,052)
Adjustments for:

Depreciation 1,895

1,481

3,326
Amortisation and impairments 7,390

4,597

12,821
Share-based payments 3,130

2,140

5,333
Finance expense - net 879

381

173
Exceptional costs 984

2,767

4,210
(Profit)/loss on acquisition of subsidiaries (2,307)

1,444

1,444
Share of post-tax loss of joint ventures 1,104

2,190

4,440
Changes in working capital (excluding the effects of acquisition and
exchange differences on consolidation):

trade and other receivables (6,527)

3,174

(2,517)
trade and other payables 6,747

1,916

4,759






Cash used in operations (9,972)

(9,628)

(17,063)

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating
to the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.

The Group has a net funds balance at 31 December 2013 of 66.2m.


9. Contingencies

Except as set out below, no member of the Group is or has been involved in any governmental, legal or arbitration proceedings and
the Directors are not aware of any such proceedings pending or threatened by or against the Group during the six months preceding
the date of the Condensed Consolidated Statement of Financial Position which may have or have had, in the recent past, a significant
effect on the financial position or profitability of the Group.

Mobile VPT Limited has issued a UK patent infringement claim against Monitise International Limited (formerly known as Monitise
Limited) (MIL) and other related parties. Following advice from leading counsel, the Directors believe that Monitises business
activities in the UK do not infringe any valid claim of Mobile VPTs patent and that the Mobile VPT patent may be invalid. Monitise
continues to monitor the status of the proceedings since they were stayed in October 2007 but to date, and in light of the advice
received from leading counsel, no provision has been reflected in the results.

The Group is currently defending a number of its customers in the US against claims for patent infringements arising out of its
customers use of Monitises technology. In each of these cases, Monitise has instructed leading U.S. counsel to defend Monitises
interests. The Directors believe that each of the claims of the patents which are being asserted may be invalid and/or that Monitises
business activities in the U.S. do not infringe any valid claim of any of these patents.

Notwithstanding this, and given that the rules on recovery of legal costs in the U.S. generally limit the ability of a defendant to
recover anything more than de minimis costs incurred in successfully defending a case, the Directors have made provision for costs,
which it is believed will be incurred before these cases can be resolved.

The Group is also defending a customer of MILs in the US against claims for patent infringements arising out of its customers use of
Monitises technology. The Directors believe that each of the claims which are being asserted may be invalid and/or that Monitises
business activities in the US do not infringe any valid claim of any of these patents. To date, no provision has been reflected for non-
recoverable legal fees as this amount cannot currently be reliably estimated.




Notes to the Condensed Consolidated Financial Statements (continued)

10. Acquisition of Subsidiary Grapple Mobile Limited

On 4 September 2013, the Group acquired the entire issued share capital of Grapple Mobile Limited for a total consideration of
26,440,000 comprising cash, the issuance of 28,640,748 shares in Monitise plc and the fair value of contingent consideration
payable. Grapple Mobile Limited changed its trading name to Monitise Create on acquisition. Monitise Create is a full service
solution company that designs and builds mobile apps.

The contingent consideration relates to potential amounts payable in Monitise plc shares or cash at Monitise's option. The value of
contingent consideration is dependent on Monitise Create achieving revenue and margin targets following the acquisition.

Amounts are also payable to former owners of Monitise Create, who are employees, under the same conditions. In accordance with
IFRS 3, these amounts have been excluded from the calculation of goodwill and are expensed as share-based payments over the
period of service.

If the acquisition had occurred on 1 July 2013, combined Group revenue and loss after tax for the period would have been
47,480,000 and 21,945,000.

The Group made this acquisition in order to benefit from the front-end design talent and capabilities of the Monitise Create team.
This opportunity does not wholly translate into separately identifiable intangible assets, but represents synergies expected from
integrating Monitise Create's offering and expertise within the Monitise offering.

One-off costs relating to the acquisition of 454,000 have been recognised in the Condensed Consolidated Statement of
Comprehensive Income within Other exceptional items.

The Directors have made a provisional assessment of the fair values of the assets and liabilities, pending finalisation of external
valuation of intangible assets. The final amounts may be materially different from the provisional amounts stated. The fair values will
be finalised during the year following acquisition.

The acquisition had the following effect on the Groups assets and liabilities:

Provisional fair


Book value

value adjustment

Provisional fair value

000

000

000
Property, plant and equipment 96

-

96
Intangible assets -

1,674

1,674
Cash 2,203

-

2,203
Other acquired net liabilities (539)

-

(539)
Deferred tax liability -

(385)

(385)






Total 1,760

1,289

3,049

Provisional consideration

26,440
Provisional fair value of net assets acquired

(3,049)


Provisional goodwill recognised

23,391

Provisional consideration satisfied by:

Issuance of shares

13,175
Cash consideration

1,079
Fair value of contingent consideration

12,186



26,440


No adjustments for accounting policy alignments were required.

1,674,000 of customer related intangible assets were capitalised as part of the acquisition of Monitise Create and will be amortised
over one to five years. A deferred tax liability of 385,000 on the capitalisation of the intangible assets has been created on
acquisition.

The calculation of provisional fair values of consideration, assets and liabilities such as goodwill and intangible assets as well as the
assessment of any impairment to fair values generally, involve estimations of likely future cash flows delivering from or accruing to
those assets and liabilities.

Judgement is also involved in selecting appropriate discount rates for determining the present value of those future cash flows. Final
fair values may differ materially from those provisional values stated.
Notes to the Condensed Consolidated Financial Statements (continued)

11. Acquisition of Subsidiary Monitise Asia Pacific Limited

On 21 October 2013, the Group acquired the remaining 50% of the issued share capital in its joint venture, Monitise Asia Pacific
Limited (MAP), from its joint venture partner for a consideration of 11,850,000 paid by the issuance of 20,000,000 shares in
Monitise plc. MAP provides mobile banking, payments and commerce networks in the Asia-Pacific region.

4,957,000 of the total consideration payable was deemed to be settlement of a pre-existing relationship and has not been included
in the calculation of goodwill. The settlement of the pre-existing relationship is included within Exceptional profit on acquisition in
the Condensed Consolidated Statement of Comprehensive Income. The settlement amount was valued using a royalty-based
method. The total consideration paid for 50% of MAP was therefore 6,893,000.

If the acquisition had occurred on 1 July 2013, combined Group revenue and loss after tax for the period would have been
46,483,000 and 22,403,000.

The Group made this acquisition in order to gain full control of MAP, and consequently, have greater flexibility in entering the Asia-
Pacific market. This opportunity does not wholly translate into separately identifiable intangible assets, but represents much of the
assessed value within MAP and the opportunity within the Asia-Pacific market, supporting the recognised goodwill.

The amount of the equity interest held by the Group in MAP immediately before the acquisition had a provisional fair value of
6,893,000 and resulted in a gain on provisional fair valuation of 7,308,000. The gain on acquisition, net of the settlement of the
pre-existing relationship, was therefore 2,351,000. Offset against this was 44,000 of one-off costs. The total amount has been
recognised in the Condensed Consolidated Statement of Comprehensive Income as Exceptional gain on acquisition.

The Directors have made a provisional assessment of the fair values of the assets and liabilities, pending finalisation of external
valuation of intangible assets. The final amounts may be materially different from the provisional amounts stated. The fair values will
be finalised in the year following acquisition.

The acquisition had the following effect on the Groups assets and liabilities:



Provisional fair


Book value

value adjustment

Provisional fair value

000

000

000
Property, plant and equipment 4

-

4
Intangible assets -

905

905
Investment in joint venture 438

1,522

1,960
Cash 430

-

430
Other acquired net liabilities (1,288)

-

(1,288)
Deferred tax liability -

(149)

(149)






Total (416)

2,278

1,862

Provisional fair value of 50% interest previously held

6,893
Provisional consideration

6,893
Provisional fair value of net assets acquired

(1,862)


Provisional goodwill recognised

11,924

Provisional consideration satisfied by:

Issuance of shares

11,850
Less settlement of pre-existing relationship

(4,957)



6,893

No adjustments for accounting policy alignments were required.

905,000 of customer related intangible assets were capitalised as part of the acquisition of MAP and will be amortised over five
years. A deferred tax liability of 149,000 on the capitalisation of the intangible assets has been created on acquisition.

The calculation of provisional fair values of consideration, assets and liabilities such as goodwill and intangible assets as well the
assessment of any impairment to fair values generally, involve estimations of likely future cash flows delivering from or accruing to
those assets and liabilities.

Judgement is also involved in selecting appropriate discount rates for determining the present value of those future cash flows. Final
fair values may differ materially from those provisional values stated.
Notes to the Condensed Consolidated Financial Statements (continued)

12. Reconciliation of GAAP to Non-GAAP Items

Six months ended

Six months ended Year ended

31 December 2013

31 December 2012 30 June 2013

(unaudited)

(unaudited)* (audited)

000

'000 '000
Loss after income tax (21,977)

(30,332) (51,303)
Share-based payments 3,130

2,140 5,333
Exceptional (gain)/loss on acquisition of subsidiary (2,307)

1,444 1,444
Other exceptional items 984

2,767 4,210
Impairments -

- 973
Acquisition-related amortisation 3,740

2,980 6,555




Adjusted loss for the period (16,430)

(21,001) (32,788)

Weighted average number of ordinary shares in issue ('000) 1,608,562

1,152,882 1,350,300




Adjusted loss per share (pence) (1.0)

(1.8) (2.4)

* Comparatives for the 6 months ended 31 December 2012 have been updated to include revised acquisition accounting and final fair values relating to
the Monitise Americas Inc. and Mobile Money Network Limited acquisitions.


13. Notes to the Condensed Consolidated Statement of Comprehensive Income

EBITDA is defined as Operating loss before exceptional items, depreciation, amortisation, impairments and share-based payments charge.
Other exceptional expenses mainly comprise acquisition related items and litigation costs.



14. Post Balance Sheet Events

The Group acquired 100% of the issued share capital of Pozitron Yazilim A.., an internationally recognised company based in Turkey
delivering mobile money solutions, on 31 January 2014. Initial consideration is satisfied by the issue of 35,925,589 Ordinary shares
valued at 24m based on the closing share price of 66.5p on 31 January 2014. In addition, contingent consideration of up to 36m
may be payable in shares or cash, at Monitises discretion, based upon the achievement of earn out targets.
Due to the timing of the transaction, the accounting for this acquisition has not yet been finalised. As such, information on goodwill
and the fair value of assets and liabilities acquired is not available at the date of this report.





Company Information

Registered office 95 Gresham Street
London
EC2V 7NA

Broker Canaccord Genuity Limited
88 Wood Street
London
EC2V 7QR

Independent auditors PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
1 Embankment Place
WC2N 6RH

Registrars Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA