Major client loss expected to impact listed Mi-Pay
Listed FinTech Mi-Pay has warned that it could lose one of its major clients.
The London firm said a mobile network operator which it has served for 12 years with mobile payment and fraud management solutions “is likely” to leave its rolling contract for another provider.
The client provided 13 per cent of Mi-Pay’s revenue in 2018.
“Whilst we are disappointed with the potential impact of the client loss, we will focus on mitigating the loss of revenue and margin and continuing the consistent growth we have delivered from our existing client relationships,” chairman Michael Dickerson said in a statement to the London Stock Exchange.
Mi-Pay saw a 15 per cent increase in transactions going through its platform to £58.1 million in the first half of 2019 compared with corresponding period in 2018.
It also successfully indemnified £29.2m of payments for fraud through its Cynic fraud management solution.
Revenues for the period were £1.7m, up from £1.6m in 2018, with approximate break-even EBITDA, compared with a £0.1m loss in 2018.
Despite the renewal of two major contracts, Mi-Pay said new business growth in H2 2019 “is expected to be slower than anticipated with trading for the full year behind market expectations”.
The company also has bases in Romania and the Philippines.