Monitise, the mobile banking technology company, said it was reviewing its strategic options and warned that full-year revenue would be below its expectations, blaming its transition to a subscription-based business model.
Monitise is considering all options including a potential sale and stock market listings under the review, which will be conducted by financial adviser Moelis & Co UK.
Shares in Monitise fell as much as 22.4 per cent minutes after opening to their lowest since March 2010. The stock was the second-biggest loser on the London Stock Exchange.
“The market is telling us that investors very much doubt that Monitise will find a proper buyer,” said Exane BNP Paribas analyst Alexandre Faure.
“IBM is going to be probably the most speculated buyer,” Faure added, saying other potential bidders included MasterCard and other banking software vendors eyeing Monitise’s high profile relationships, if not their technology.
The company provides payment solutions to 350 financial institutions, including Royal Bank of Scotland, MasterCard and Santander.
Monitise also said yesterday that it expected a full-year EBITDA loss of between $60m and $76m, wider than market estimates.
However, the company said it still expected an EBITDA profit in 2016, helped by cost savings from the re-shaping of the business.