REG - Bango PLC - Trading Statement

BangoAnnouncement

15/07/2024 07:00

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RNS Number : 3164W  Bango PLC  15 July 2024

Bango PLC

 

("Bango")

 

Trading Update

 

 

Cambridge, UK, 15 July 2024 - Bango (AIM: BGO), today announces a trading
update for the six months ended 30 June 2024, ahead of announcing Interim
Results in September.

 

Financial Highlights (unaudited)

 

 ·             Total revenue up 19% to $24.1M (1H23 $20.3M)
               o                                         Transactional Revenue(1) from the payments business grew by 6% (9% in constant
                                                         currency) to $16.4M (1H23 $15.5M).
               o                                         DVM, Audiences & One-Off Revenue(2) grew by 64% to $7.7M (1H23 $4.7M)
                                                         driven by growth of the Bango Digital Vending Machine® (DVM(TM)).
 ·             Annual Recurring Revenue (ARR)(3) up 130% to $12.9M (1H23: $5.6M) due to DVM
               usage growth and new customer wins.
 ·             Net Revenue Retention(4), a measure of the growth in ARR from telcos active in
               1H23 was 159%
 ·             Other Income of $1.4M, which is not included in the revenue figure above,
               related to recovery of tax costs from the acquisition of DOCOMO Digital. $1.1M
               will be accounted for as a tax cost, resulting in $0.3M profit.
 ·             Adjusted EBITDA(5) is expected to be greater than $4.0M (1H23: -$0.2M).
 ·             Net debt(6) of $5.0M at 30 June 2024.

 

Operational Highlights

 

 ·             Bango signed 4 new DVM contracts in the first half including a Latin American
               bank - the first DVM win in the financial services vertical.
 ·             A leading European telco that adopted the Bango DVM in 2020 extended their DVM
               contract for a further 3 years. The minimum contract value over the 3 year
               term is $1.5M.
 ·             2 existing partners, 1 in North America and 1 in Europe, activated additional
               DVM capabilities to enable new propositions for their customers.
 ·             13 new subscription content providers were added to the DVM, taking the total
               to 106.
 ·             A total of 16 eDisti(7) content providers allows Bango to provide a
               'pre-stocked' Digital Vending Machine, reducing time to revenue for DVM
               customers. eDisti partners include Microsoft and a new Tier 1 video streaming
               company.
 ·             Bango signed a global agreement with Uber to accelerate the take-up of Uber
               One subscriptions through telco channels, proving the appeal of the Bango DVM
               beyond video, music and gaming services.
 ·             The global technology leader announced in June 2022 launched its first two
               telcos with Bango in 1H24. Additional launches are planned in 2H24.
 ·             Bango joined the Amazon AWS Partner Network. This creates new business
               opportunities for the DVM in partnership with AWS, which has a strong customer
               base and expansive reach into new regions and technology domains.
 ·             Chartered Accountant Tony Perkins joined the Bango Board as a Non-Executive
               Director and Chair of the Audit Committee.
 ·             BDO LLP appointed as new auditor.

 

 

Paul Larbey, Chief Executive Officer of Bango, commented:

 

"The first six months of 2024 have gone to plan.  We have driven continued
growth from our customer base and won new DVM customers. This growth, along
with a strong sales pipeline, positions us for a successful year that meets
market expectations. We remain on track to return to a positive net cash
position in FY25.

 

World leaders such as Uber and the Tier 1 video streamer have selected Bango
to increase distribution of their subscription products - this is clear
evidence of the power of the Digital Vending Machine. The subscriptions market
is vast and growing, and the percentage of subscriptions bundled through
channels is increasing. Bango's leadership position in this market is
strengthening and we are excited by the opportunity ahead."

 

(1) Transactional Revenue is revenue derived by charging a percentage of the
retail price paid by the consumer and is made up of carrier billing, resale
and revenue share amounts.

(2) DVM, Bango Audiences & one-off Revenue includes all DVM license and
support fees, revenue from Bango Audiences and one-off fees including DVM
set-up and change requests.

(3)Annual Recurring Revenue is the expected annual revenues to be generated in
the next 12 months

based on contracted revenues recognized as at 30 June 2024.

(4) Net Revenue Retention is a measure of the retention and expansion of
revenue from existing customers over the previous 12 months and is calculated
by dividing the ARR from existing customers at the end of 1H24 by the ARR
generated from those same customers at the end of 1H23.

(5)Adjusted EBITDA is earnings before interest, tax, depreciation,
amortization, negative goodwill, exceptional items, share of net loss of
associate and share based payment charge

(6)Net debt is cash and cash equivalents plus short-term investments less the
loan from NHN and borrowings. The Barclays overdraft facility was not drawn
on.

(7) eDisti is a program that allows Bango to resell subscriptions from content
providers removing the need for a commercial agreement between the DVM
customer and the content provider.

 

 

ENDS

 

 

Contact Details:

 

 Bango PLC                                         Singer Capital Markets (Nominated Adviser and Broker)
 +44 1223 617 387                                  +44 20 7496 3000
 investors@bango.com (mailto:investors@bango.com)

 Paul Larbey, CEO                                  Jen Boorer
 Matt Garner, CFO                                  Asha Chotai

 

About Bango

 

Bango enables content providers to reach more paying customers through global
partnerships. Bango revolutionized the monetization of digital content and
services, by opening-up online payments to mobile phone users worldwide.
Today, the Digital Vending Machine(®) is driving the rapid growth of the
subscriptions economy, powering choice and control for subscribers.

 

The world's largest content providers, including Amazon (NASDAQ: AMZN), Google
(NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) trust Bango technology to reach
subscribers everywhere.

 

Bango, where people subscribe. For more information, visit
www.bangoinvestor.com (http://www.bangoinvestor.com/)

 

 

 

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