REG - Bango PLC - Trading Update

BangoAnnouncement

27/07/2023 07:15

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RNS Number : 3211H  Bango PLC  27 July 2023

 

Bango PLC

 

("Bango")

 

Trading Update

 

 Strong first half with 88% revenue growth and new tier-1 DVM contracts

 

 

Cambridge, UK, 27 July 2023 - Bango (AIM: BGO), the global platform for
data-driven commerce, today announces a trading update for the 6 months ended
30 June 2023, ahead of announcing Interim Results in September.

Bango generated strong growth during the first half of FY23 with revenue up
88% to $20.3M (1H22 $10.8M), in line with management expectations.

 

The Bango Digital Vending Machine ("DVM") continued to drive growth, with ARR
up 64% to $5.6M (1H22: $3.4M) and remains on track to reach $10M by the end of
2023. Bango signed new DVM contracts in the first half, with BenefitOne and 2
US telcos, including another top 5 operator. These new US contracts will begin
generating ARR in 2H23. The Bango DVM now enables digital subscription
services for 3 out of the top 5 US operators, serving 61% of US consumers.

 

Adjusted EBITDA* in 1H23 is expected to be -$0.4M (1H22: $2.9M), in line with
management expectations, reflecting the costs associated with the DOCOMO
Digital integration. The integration is progressing well with actions already
taken to deliver $19M of the $21M of guided cost synergies. The benefit from
synergy actions and the typical second half revenue weighting underpins
management's confidence in delivering EBITDA in line with market expectations
for the full year.**

 

Gross profit margin remained high at 90% in 1H23 (FY22: 91%). As at 30 June
2023, Bango had net cash of $13.4m (31 December 2022: $9.5M***), including the
previously announced $8M NHN loan. This is as a result of the phasing of
working capital movements, which has positively impacted the first half.

 

 

Paul Larbey, Chief Executive Officer of Bango, commented:

"Bango made great progress in the first half of the year with 88% revenue
growth, demonstrating the momentum in the business. Traction of the Digital
Vending Machine is clear, particularly in the US market, with a further 2 key
US wins. Fast DVM growth means recurring, multi-year SaaS revenue is becoming
an increasing proportion of the Bango revenue mix. The high-profile launch of
Verizon +Play in March sets a clear standard for super bundling globally and I
am excited by the deals we have in the pipeline".

 

* Adjusted EBITDA is earnings before interest, tax, depreciation,
amortization, share based payment charge and exceptional items.

** Market consensus can be found here:
https://bangoinvestor.com/analyst-consensus
(https://bangoinvestor.com/analyst-consensus)

*** Excludes cash $3M previously marked as restricted for discontinued
operations

 

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

 

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/)

 

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