REG - Bango PLC - Interim Results
18/09/2023 07:00
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RNS Number : 6840M Bango PLC 18 September 2023
Bango PLC
("Bango ")
Interim Results for the six months ended 30 June 2023
Cambridge, UK, 18 September 2023 - Bango (AIM: BGO), the global platform for
data-driven commerce, today announces its interim results for the six months
ended 30 June 2023.
Key highlights:
· Revenue up 88% to $20.3M (1H22: $10.8M), in line with management
expectations
· Strong Digital Vending Machine(TM) (DVM) traction in the US. New
deal in 1H means Bango has secured 3 out of 5 key US telcos, opening up
subscription bundling to >200M US customers
· The DOCOMO Digital (DDL) integration cost synergies are 90%
complete. On track to deliver profitability in line with consensus
expectations.
Financial Overview:
Results for the 6 months ended 30 June 2023 1H23 1H22 Change
Revenue $20.3M $10.8M +88%
Annual recurring revenue (ARR) (1) $5.6M $3.4M +63%
Adjusted EBITDA(2) ($0.2M) $2.9M
Profit/(Loss) before taxation ($4.9M) ($1.2M)
Cash $13.4M $5.7M
Financial highlights:
· Revenue increased to $20.3M (1H22: $10.8M). Growth driven by payment &
subscription volumes, new DVM contracts and a contribution from the
acquisition of DDL. Bango payments revenue, including the DDL contribution is
typically 40:60 weighted 1H:2H
· ARR grew to $5.6M. This growth will accelerate as DVM contracts won in 1H23
launch
· Gross profit margin remains high at 90% in 1H23 (2H22: 90%)
· Actions to deliver $19M of the $21M of guided cost synergies are already
complete and the benefit to profit margins of synergy actions taken in 1H23
will materialize through 2H23
· Adjusted EBITDA(2) of -$0.2M (1H22: $2.9M), is ahead of the July trading
update and reflects the impact of costs associated with the DDL integration.
Adjusted EBITDA is in line with management expectations for 1H23
Operational highlights:
· 2 new US DVM wins in 1H23, including 1 additional top 5 US operator,
strengthens Bango leadership position in the US market
· DVM contract with Japanese employee benefits provider, Benefit One,
illustrates the additional opportunity for the DVM in verticals outside telco
· Bango Payments continues to grow, evidenced by the new Amazon and Google
routes announced
· 22 new merchants connected to the Bango Platform in 1H23 with an increasing
number using Bango Audiences, to find new paying consumers and drive growth.
Outlook
· Bango is on track to meet consensus market expectations for the full year
· There is a healthy pipeline of DVM deals. The expected launch of services from
the wins in the first half gives Management confidence that Bango will exit
the year with a run rate of $10M ARR
· As full synergies from the acquisition are realised, Bango will see Adjusted
EBITDA margins increase and is on track to deliver a substantial increase in
Adjusted EBITDA for FY24.
· Strong free cash flow generation expected in FY24.
Paul Larbey, Chief Executive Officer of Bango, commented:
"I am excited about the opportunities for our Super Bundling strategy. Our
leadership in the telecommunications market was extended by the acquisition of
DOCOMO Digital one year ago. Profitability and cash generation will grow, as
we deliver on the synergies from the acquisition. Our focus on the Digital
Vending Machine is already delivering revenue growth. The recurring revenue
generated from the DVM deals already won will drive exponential growth in the
years to come."
Presentation and Webcast
A presentation of the interim results will be made to investors and analysts
at 8.30am this morning via the Investor Meet Company Platform. Those wishing
to join the call can sign up to Investor Meet Company for free and add to
meet BANGO PLC via:
https://www.investormeetcompany.com/bango-plc/register-investor
(https://www.investormeetcompany.com/bango-plc/register-investor)
Notes
(1) ARR is calculated by annualizing the June 2023 revenue derived from ongoing,
contracted, repeating revenues
(2) Adjusted EBITDA is earnings before interest, tax, depreciation, amortization,
share based payment charge, negative goodwill and exceptional items.
( )
( )
Contact Details:
Bango PLC Singer Capital Markets (Nominated Adviser and Joint Broker) Stifel Nicolaus Europe Limited (Joint Broker)
+44 1223 617 387 +44 20 7496 3000 +44 20 7710 7600
investors@bango.com (mailto:investors@bango.com)
Paul Larbey, CEO Harry Gooden Nick Adams
Matt Garner, CFO Jen Boorer Richard Short
Anil Malhotra, CMO Asha Chotai Ben Burnett
Rebecca Jamieson, IR
About Bango
The world's largest online merchants, including Amazon (NASDAQ: AMZN), Google
(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT), use Bango technology to acquire
more paying users.
Bango has developed unique purchase behavior technology that enables millions
more users to buy the products and services they want, using innovative
methods of payment including carrier billing, digital wallets and subscription
bundling. Bango harnesses this purchase activity into valuable marketing
segments, called Bango Audiences. Merchants use these audiences to target
their marketing at paying customers based on their purchase behavior. Better
targeting increases spend through the Bango payments business, in turn
generating more data insights, creating a powerful virtuous circle that drives
continuous growth. Everyone connected to the Bango Platform thrives as the
virtuous circle grows.
Bango, the technology behind every payment choice. For more information,
visit www.bangoinvestor.com (http://www.bangoinvestor.com/)
CEO Statement
Introduction
While subscriptions aren't new, in recent years they have become the dominant
way that we pay for goods and services from music, video and gaming to food,
health, transportation and educational services. Analysts are excited about
the growth of the subscription economy, expecting over $600B of consumer spend
on digital subscriptions within the next 3 years and over $1 Trillion spent on
subscriptions across all categories. Bango has unique technology that enables
merchants to benefit from Super Bundling - where telcos and other channel
partners offer their customers an integrated hub of subscription services.
This technology is the Bango Digital Vending Machine which is the defacto
solution in the Super Bundling market. Powering this opportunity is our number
one priority for 2023. To do this while completing the integration of DOCOMO
Digital requires focus, strong execution and a great team; all things that I
am proud to say Bango has in abundance.
The growth in the subscription economy coupled with our dominance in the Super
Bundling market, particularly in the US where Bango powers 3 out of the top 5
service providers, is reflected in our 88% revenue growth in 1H23.
Integration
In the first half, we continued the rapid integration of the teams and
customers brought into Bango through the DOCOMO Digital acquisition at the end
of August 2022. As we start the second half of the year, our plan to realize
$21M of annualized cost synergies is practically complete, with actions
already taken to deliver $19M of these. The migration of routes to the Bango
Platform will complete in 2024 as planned and a number of low value routes
have been exited. The organizations are fully integrated and the
simplification of the former DOCOMO Digital business is well advanced. There
is a natural delay from the synergies being executed to them benefiting our
profitability. The simplest example is headcount reductions where, due to
notice periods, cost savings begin around one quarter after the redundancy is
triggered.
As the benefits from the cost synergies executed in 1H 2023 flow through, the
result is a step up in EBITDA in 2H23 and beyond.
The acquisition also accelerated the growth of the Bango team working on the
Platform. The ability to rapidly assimilate technical staff with domain
expertise has allowed Bango to grow the team faster than we could have hoped
for.
Payments
The Payments business continues to grow. Due to the concentration of big
spending events in the second half of the year (Christmas, Black Friday,
Amazon Prime Day, New Year celebrations), revenue is typically 40:60 weighted.
Our strategy is to continue to support the global merchants as they expand, to
use the platform benefit to add new merchants to existing wallet and DCB
connections and to enable telco billing for DVM customers. The connection to
the Global Tech leader (announced in June last year) is complete and the first
launches are expected in 1H 2024.
Audiences
In my statement reported in the FY22 results, I listed the three focus areas
for Bango Audiences.
1. Focus on a smaller number of larger app developers
2. Expand into brand marketing direct and with agencies
3. Support Digital Vending Machine merchants in finding new customers
I am pleased to say that great progress has been made across all three areas.
We launched campaigns with sports brands Sweaty Betty and Vuori and reached
agreement with the first large marketing agency who has launched a campaign
for a global financial services brand and is expanding their use of Audiences
to major retailer campaigns.
The ability to target offers using Bango Audiences is one of the reasons so
many DVM merchants have selected the Bango Platform to help them expand their
customer base. I expect the two businesses to become more tightly coupled as
the DVM business grows.
Digital Vending Machine (DVM)
Bundling has long been a successful strategy for telcos. In the past 10 years
bundling voice, mobile data, fixed broadband, TV etc became commonplace,
termed Triple or Quad play services. Telcos bundled these services to increase
revenue and also to reduce churn - the logic being the more services you had
the harder it was to leave. With the emergence of direct-to-consumer streaming
services with original content, such as Netflix, Prime Video & Disney+, it
became expensive and often impossible for telcos to purchase the wholesale
content rights and bundle through a set-top-box. This led to telcos starting
to bundle third party streaming services with certain broadband tiers. This
type of bundle is a consumer offer that Bango has enabled between merchant and
telcos for many years (see our latest announcement on the 70 Amazon Prime
bundling connections).
Super Bundling is simply the ability to manage and pay for all your
subscriptions in a single place, and on a single bill. This provides
significant benefits for everyone:
For the Consumer:
· Easier to see the total cost of subscriptions and manage renewals
· Access to discounts and special offers
· Simpler to discover and try new services - no need to provide credit card
details
For the bundler (telco):
· Increased revenue per customer - the telco takes a margin for each
subscription sold
· Reduced churn - switching broadband is straight forward. Switching broadband
and 5-10 additional subscription services is much more difficult
· Exciting new services and offers to attract new customers
For the subscription provider (e.g. Netflix):
· Access to a new customer group
· Increased subscribers with lower churn than credit card
· Additional marketing - the bundler is now marketing the subscription services
The DVM is the Bango product powering this Super Bundling opportunity. It is
built on, and shares the advantage of, the broader Bango Payments Platform,
i.e. connect once, access many. The Super Bunding market is new but growing
quickly. In the telco space, Bango is the Super Bundling technology partner
for many of the largest telcos, including three out of the top five in the US
(Verizon and T-Mobile having been previously announced and the other, won in
1H23, we are unable to name). The remaining two have not yet launched a Super
Bundling proposition and remain active targets. The business is therefore in a
"footprint capture" phase, where revenue growth is driven by winning and
launching new telcos. The Bango DVM provides a solution for telcos of all
sizes with many smaller operators having launched or looking to launch Super
Bundling to help them differentiate their offers. These telcos start on the
bottom tier of license revenue which for a large telco could be circa $1M.
Once launched, and at volume, the business enters the "capacity growth" phase
where license fees will significantly increase.
Some simple maths shows the telco opportunity is huge and Bango is well
positioned to become the market leader in subscriptions bundling.
Paul Larbey
CEO
CFO statement
Following the acquisition of DOCOMO Digital at the end of August 2022 and the
growth of the DVM business, Bango revenue has continued to grow. Bango has
executed on its acquisition strategy to reduce the costs associated with the
DDL business, while also investing in the Bango Platform and the development
of the new DVM offer.
Bango business model
As in previous years, Bango continues to report on one line of business, being
payment transactions processed by the Bango Platform for both physical and
digital goods, subscriptions managed by the DVM and the monetization of
payment data. The growth in the DVM business can be seen from the reported
Annual Recurring Revenue (ARR). ARR is calculated by annualizing the end-month
revenue in the period derived from ongoing, contracted, repeating revenues.
Revenue
Revenue increased 88% to $20.3M (1H22: $10.8M).
During the period, the Japanese Yen continued to weaken against the US Dollar
which had some negative impact on revenue from Japan which forms a significant
portion of the acquired DOCOMO Digital revenue.
Bango Annual Recurring Revenue continues to show good growth moving from $3.4M
at 1H22 to $5.6M at 1H23, a 63% increase.
Bango earns further payment revenue from transactions processed through the
Bango Platform, license fees from DVM Agreements, data monetization revenue
from the insights provided through this activity and through other methods,
such as integration fees, which are recognized on completion of contracted
milestones and in line with International Financial Reporting Standard 15;
Revenue from Contracts with Customers.
Gross margin is high at 90.0% of revenue in 1H23 (1H22: 92.8%).
Operating expenditure of continuing operations
Bango adjusted operating costs for 1H23, which exclude depreciation,
amortization, share based payments, negative goodwill and exceptional items,
were $18.5M, up from pre-acquisition costs of $7.2M for 1H22. The increase was
largely driven by the acquired costs of the DDL business, especially related
to headcount. These costs are reducing as part of the synergy savings being
executed.
Adjusted EBITDA was negative $0.2M, (1H22: $2.9M) as a result of the
increased costs but was in line with expectations for the first half.
Exceptional costs for the period of $3.3M include the disposal of a
non-trading subsidiary acquired in the DDL transaction ($2.6M), further write
downs of the intangible assets related to the DOCOMO Digital platform ($0.6M)
and office cost expenses related to the unsuccessful acquisition of a new
Bango office ($0.1M).
The Negative goodwill ($3.8M) relates to the fair value adjustment of deferred
tax which formed part of the opening balance sheet and amends the negative
goodwill of $10.2M recognized at the year-end as at 31 December 2022 to $14M.
The share-based payment charge was $1.1M (1H22: $0.8M) calculated using the
Black-Scholes-Merton model. Bango continues to view this benefit as a key
driver for employee engagement allowing them to benefit from growth in the
share value of the company and this benefit was extended, where possible, to
those who joined as part of the DDL acquisition.
Continued investment in the Platform, combined with the development of the DVM
offering and advancements in the automation of the Audiences offering, has
seen depreciation and amortisation rise in cost from $2.5M in 1H22 to $3.5M in
1H23 as capitalised R&D is released into production and amortized.
Loss and loss per share
The loss after tax was $4.3M (1H22: $0.5M) after accounting for a share of
the net loss of associates (NewDeep JV) using the equity method:
$0.5M (1H22: $0.8M).
Bango takes advantage of the R&D tax credit scheme available to businesses
carrying out qualifying R&D and this gave a benefit of $0.7M (1H22:
$0.7M). The process of submission has changed this year with further revisions
and restrictions on values that can be claimed coming into force from April
2024. Bango will continue to make use of this benefit in future years although
the return will be reduced from these new rule changes.
Basic loss per share was a loss of 5.55c (1H22: 0.65c).
Cash
Cash and short-term cash investments as at 30 June 2023 were $13.4M (31
December 2022: $12.7M) including the loan received from key investor NHN
Corporation ($7.9M). Bango continued to generate cash from operating
activities during the period.
Matthew Garner
Chief Financial Officer
Consolidated statement of comprehensive income for the six months ended 30
June 2023
Six months Six months
ended ended
30 June 2023 30 June 2022
Unaudited Unaudited
Note $ 000 $ 000
Revenue 20,274 10,789
Cost of sales (2,026) (781)
Gross profit 18,248 10,008
Administrative expenses (22,596) (10,431)
Adjusted EBITDA (231) 2,851
Exceptional items 3 (3,336) -
Negative goodwill 3 3,798 -
Share based payments (1,067) (819)
Depreciation (512) (103)
Amortization (3,000) (2,352)
Operating loss (4,348) (423)
Finance costs (103) (1)
Finance income 2 12
Share of net loss of associates accounted for using the equity method 6 (489) (799)
Loss before taxation (4,938) (1,211)
Income tax income 683 714
Income for the period (attributable to equity holders of the company)
(4,255) (497)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign exchange on consolidation 1,969 (3,773)
(Loss) and total comprehensive income for the financial period (2,286) (4,270)
Loss per share
Note
Basic loss per
share
4 (5.55)
c (0.65) c
Diluted loss per
share
4 (5.55) c
(0.65) c
Notes 1 to 8 are an integral part of the consolidated interim financial
statements.
Consolidated statement of financial position as at 30 June 2023
30 June 2023 Unaudited 31 December 2022
$ 000 Audited
Note $ 000
ASSETS
Non-current assets
Property, plant and equipment 1,128 1,145
Right of use assets 2,615 2,640
Intangible assets 33,187 27,244
Investments accounted for using the equity method 6 4,061 3,766
40,991 34,795
Current assets
Trade and other receivables 13,439 22,016
Research and development tax credits 1,926 2,030
Short-term investments 41 41
Cash and cash equivalents 13,361 12,657
28,767 36,744
Total assets 69,758 71,539
EQUITY
Capital and reserves attributable to equity holders of the parent company
Share capital 5 24,575 24,471
Share premium account 63,113 62,411
Merger reserve 2,886 2,886
Share-based payments reserve 5,194 4,029
Foreign exchange reserve (1,108) (2,812)
Accumulated losses (63,629) (59,541)
Total equity 31,031 31,444
LIABILITIES
Current liabilities
Trade and other payables 27,144 32,533
Lease liabilities 792 841
27,936 33,374
Non-current liabilities
Loans and borrowings 7 7,873 -
Trade and other payables 448 512
Lease liabilities 1,819 1,801
Deferred tax 651 4,408
10,791 6,721
Total liabilities 38,727 40,095
Total equity and liabilities 69,758 71,539
Notes 1 to 8 are an integral part of the consolidated interim financial
statements.
Consolidated cash flow statement for the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
Unaudited Unaudited
$ 000 $ 000
Cash flows from operating activities
Loss for the period (4,255) (497)
Adjusted for:
Depreciation of property, plant & equipment 512 103
Amortization of intangibles 3,000 2,352
Negative goodwill recognized (3,798) -
Net finance costs 101 (11)
Share based payments 1,067 819
Share of profit or loss of associate 489 799
Taxation credit (683) (714)
Decrease/(increase) in trade and other receivables 9,142 (2,570)
(Decrease)/increase in trade and other payables (5,282) 1,162
Cash generated from operating activities 293 1,443
Corporation tax received 796 62
Net cash generated from operating activities 1,089 1,505
Cash flows from investing activities
Purchases of property plant and equipment (76) (368)
Addition to intangible fixed assets (8,318) (4,601)
Short-term investments - 945
Interest received 2 11
Additional investment in associate (631) -
Net cash outflow from investing activities (9,023) (4,013)
Cash flows from financing activities
Proceeds from issue of ordinary shares 806 172
Proceeds from borrowings 7,873 -
Interest payable (39) -
Interest payments on finance lease obligations (64) -
Capital repayments on finance lease obligations (484) (37)
Net cash flows from financing activities 8,092 135
Net increase/(decrease) in cash and cash equivalents 158 (2,373)
Cash and cash equivalents at 1 January 12,657 8,706
Effect of exchange rate fluctuations on cash held 546 (628)
Cash and cash equivalents at 30 June 13,361 5,705
Notes 1 to 8 are an integral part of the consolidated interim financial
statements.
Consolidated statement of changes in equity for the six months ended 30 June
2023
Share Share based Foreign
premium account Merger reserve payment reserve currency translation Retained earnings
Share capital Total
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
At 1 January 2023 24,471 62,411 2,886 4,029 (2,812) (59,541) 31,444
Loss for the period - - - - - (4,255) (4,255)
Foreign exchange translation - - - 265 (265) - -
Foreign exchange on consolidation - - - - 1,969 - 1,969
Total comprehensive income - - - 265 1,704 (4,255) (2,286)
Share-based payment transactions - - - 1,067 - - 1,067
Transfer for exercised options - - - (167) - 167 -
Exercise of share options and warrants 104 702 - - - - 806
Transactions with owners 104 702 - 900 - 167 1,873
At 30 June 2023 24,575 63,113 2,886 5,194 (1,108) (63,629) 31,031
Share Share based Foreign
premium account Merger reserve payment reserve currency translation Retained earnings
Share capital Total
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
At 1 January 2022 24,392 62,057 2,886 3,635 2,109 (58,265) 36,814
Loss for the period - - - - - (497) (497)
Foreign exchange translation - - - (395) 395 - -
Foreign exchange on consolidation - - - - (3,773) - (3,773)
Total comprehensive income - - - (395) (3,378) (497) (4,270)
Share-based payment transactions - - - 819 - - 819
Transfer for exercised options - - - (168) - 168 -
Exercise of share options and warrants 34 138 - - - - 172
Transactions with owners 34 138 - 651 - 168 991
At 30 June 2022 24,426 62,195 2,886 3,891 (1,269) (58,594) 33,535
Notes 1 to 8 are an integral part of the consolidated interim financial
statements.
1 General information
Bango PLC ("the Company") was incorporated on 8 March 2005 in the United
Kingdom. Bango PLC is domiciled in the United Kingdom. Bango PLC's shares are
listed on the Alternative Investment Market of the London Stock Exchange
("AIM"). The Bango registered office is at Botanic House, 100 Hills Road,
Cambridge, CB2 1YG, United Kingdom. The Bango principal place of business is
326 Science Park, Milton Road, Cambridge, CB4 0PZ, United Kingdom.
2 Basis of preparation
These interim financial statements are for the six months ended 30 June 2023.
They do not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2022, which have been
filed at Companies House with an unmodified audit report.
These interim financial statements have been prepared in accordance with
UK-adopted International Accounting Standards ("IFRS"). These financial
statements have been prepared under the historical cost convention.
These interim financial statements have been prepared in accordance with the
accounting policies adopted in the last annual financial statements for the
year to 31 December 2022. The accounting policies have been applied
consistently throughout the Group for the purposes of preparation of these
interim financial statements and are expected to be followed throughout the
year ending 31 December 2023.
These financial statements are presented in US Dollars (USD), the presentation
currency of Bango PLC Group. The Group's functional currency is GBP Sterling.
3 Exceptional items and negative goodwill
2023
$ 000
Restructuring costs 2,643
Asset write-down 553
Bango office costs 140
3,336
The restructuring costs relate to the closure of the Net-M subsidiary during
the period.
The asset write-down relates to development costs incurred on the former
Docomo Digital platform that would ordinarily be capitalized under IAS 38, but
due to the planned migration to the Bango Platform, the costs have been
expensed.
Bango office costs relate to expenses incurred in the unsuccessful acquisition
of a new Bango office.
2023
$ 000
Negative goodwill 3,798
Negative goodwill relates to the fair value adjustment of the deferred tax
which formed part of the opening balance sheet and amend the negative goodwill
of $10.2M recognized as at 31 December 2022. Following further reviews, the
deferred tax liability is no longer required.
4 (Loss) / earnings per share
(a) Basic
Basic loss per share are calculated by dividing the profit attributable to
equity holders of Bango Plc by the weighted average number of ordinary shares
in issue during the period.
Six months Six months
ended ended
30 June 2023 30 June 2022
Unaudited Unaudited
$ 000 $ 000
Loss from operations (4,255) (497)
Loss attributable to equity holders of Bango PLC (4,255) (497)
Weighted average number of ordinary shares in issue 76,641,638 76,074,109
Basic (loss) / earnings per share
Basic loss per share attributable to equity holders
(5.55) c (0.65) c
Basic adjusted (loss) / earnings per share
Adjusted basic (loss) / earnings per share is a key financial information
which discloses the financial performance of the core business for which the
directors have direct control. Adjusted basic (loss) / earnings per share is
determined as the profit attributable to equity holders of Bango Plc excluding
the Bango Plc share of the net loss of associate for the period, negative
goodwill and exceptional items divided by the weighted average number of
ordinary shares in issue during the period.
Six months Six months
ended ended
30 June 2023 Unaudited 3
0
$ 000 J
u
n
e
2
0
2
2
U
n
a
u
d
i
t
e
d
$
0
0
0
Loss from operations (4,255) (497)
Exceptional items 3,336 -
Negative goodwill (3,798) -
Share of net loss of associates accounted for using the equity method 489 799
(Loss) / profit attributable to equity holders of Bango PLC (4,228) 302
Weighted average number of ordinary shares in issue 76,641,638 76,074,109
Basic adjusted (loss) / earnings per share
Adjusted basic (loss) / earnings per share attributable to equity holders (5.52) c 0.40 c
(b) Diluted
At 30 June 2023 8,422,410 options over ordinary shares of (30 June 2022:
6,554,141) were outstanding.
Six months Six months
ended 30 June 2023 Unaudited ended 30 June 2022 Unaudited
$ 000 $ 000
Weighted average number of ordinary shares in issue 76,641,638 76,074,109
Options - -
Weighted average number of ordinary shares in issue (including options) 76,641,638 76,074,109
As required by IAS33 (Earnings per Share), the impact of potentially dilutive
options was disregarded for the purposes of calculating diluted loss per share
in the current and previous periods as the Group was loss making.
Diluted (loss) / earnings per share
Diluted (loss) / earnings per share attributable to equity
holders
(5.55) c (0.65) c
Diluted adjusted earnings per share
Six months Six months
ended 30 June 2023 Unaudited ended 30 June 2022 Unaudited
$ 000 $ 000
Weighted average number of ordinary shares in issue 76,641,638 76,074,109
Options - 1,064,927
Weighted average number of ordinary shares in issue (including options) 76,641,638 77,139,036
As required by IAS33 (Earnings per Share), the impact of potentially dilutive
options was disregarded for the purposes of calculating diluted loss per share
in the period as the Group was loss making.
Diluted adjusted (loss) / earnings per share
Diluted adjusted (loss) / earnings per share attributable to equity
holders (5.52)
c 0.39 c
5 Share capital
Allotted, called up and fully paid shares
30 June 31 December
2023 2022
No. $ 000 No. $ 000
As at 1 January of 0.20 each 76,331,846 24,471 76,013,659 24,392
Exercise of share options and warrants of 0.20 each
427,362 104 318,187 79
76,759,208 24,575 76,331,846 24,471
6 Interest in associates and other investments Interest in associates
The interest in associate relates to the group's 40% interest in the NewDeep
Limited group.
2023 2022
$ 000 $ 000
Opening balance as at 1 January 3,766 5,630
Addition - NewDeep Limited group 631 -
Other investments - 76
Share of operating losses (489) (1,393)
Foreign exchange movements 153 (547)
Closing balance as at 30 June 4,061 3,766
7 Loans and borrowings
30 June 31 December
2023 2022
$ 000 $ 000
Non-current loans and borrowings
Borrowing 7,873 -
During the period the Group entered into a three year loan agreement with NHN
Corporation for $7.9M. The loan was secured with a fixed annual interest rate
of 6%. The loan is payable over eight quarterly instalments beginning in
September 2024.
8 Publication of non-statutory accounts
The condensed consolidated interim financial information was approved by The
Board of Directors on 17 September 2023.
The financial information set out in this interim report does not constitute
statutory accounts as defined in section 435 of the Companies Act 2006. The
figures for the period ended 31 December 2022 have been extracted from the
Statutory Financial Statements of Bango PLC, which have been filed with the
Registrar of Companies. The auditor's report on those financial statements is
unqualified and did not contain any reference to any matters to which the
auditors drew attention to by way of emphasis without qualifying their report
a statement under section 498(2) or 498(3) of the Companies Act 2006. The
interim financial information for the six months to 30 June 2023 is unaudited.
The interim report together with an analyst briefing presentation will be
distributed to all shareholders and will be available on the Bango investor
site at www.bangoinvestor.com. (http://www.bangoinvestor.com/)
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