The mobile payments and analytics company issued a somewhat disappointing trading update for the year ending 31st March 2012 announcing that full year results would be below market expectations, however, there was encouraging progress from the Analytics product. Bango (LON:BGO) enables businesses of all sizes to collect payment for music, games, applications, videos and services sold to internet connected mobile phone users. Bango is able to charge payments to mobile phone bills or use other billing methods such as credit card based on intelligence about the consumer. Bango also provides an analytics service that provides accurate information about visitors and the effectiveness of marketing activities for mobile web sites.
Management commented that, although the rate of carrier live launches has increased, growth from end user spend is increasing more slowly than anticipated The third major App Store is in the final stages of completion and is expected to be signed in this calendar year. Control over the cash has often been a problem with new technology businesses such as this but thankfully Bango was able to report the cash position increased to £2.7m at 30th Sept, which was ahead of forecasts (30th Sept 2010 £1.16m). The number of carriers now connected via Bango to the RIM App Store (that’s Blackberry) has increased to 17 from one this time last year, however the growth rate of new carrier revenues is slower than anticipated once carrier billing is activated. New App Store software and promotions are being deployed, including a new version of Blackberry App World which should help to drive revenues in the second half and beyond.
The Bango Analytics product has made good progress in the smart phone market, with app analytics now deployed in iPhone, iPad, Blackberry, Android, Windowsphone, Symbian and Qt applications, meaning the market for this product line is significantly increased. In the period Bango saw a 197% increase in analytics transaction volumes, driven by activity from Turner, Telefonica, Thomson Reuters and others, and revenues for this part of the business are in line with expectations. The shares have fallen over 60% over the past 12 months and the latest update will clearly also add to the downward pressure - could be an opportunity to get involved!
