REG - Bango PLC - Trading Statement

BangoAnnouncement

24/07/2025 07:00

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RNS Number : 2925S  Bango PLC  24 July 2025

Bango PLC

 

("Bango")

 

Trading Update for 1H2025

 

 21% ARR growth and accelerating Digital Vending Machine adoption fuels
>60% rise in Adjusted EBITDA

 

Cambridge, UK, 24 July 2025 - Bango (AIM: BGO), today announces a Trading
Update for the six months ending 30 June 2025, ahead of announcing Interim
Results in September.

 

Financial Highlights (unaudited)

 

 ·             Total 1H25 revenue up 5% to $25.2M (1H24 $24.1M)
               o                                        DVM & One-Off Revenue(1) grew by 15% to $8.9M (1H24 $7.7M)
               o                                        Total Transactional Revenue(2) was flat at $16.4M (1H24 $16.4M) as the 10%
                                                        growth in the core routes was masked by volatility in a small number of high
                                                        cost of sales routes acquired with DOCOMO Digital.
 ·             Annual Recurring Revenue (ARR)(3) grew by 21% to $15.6M (1H24: $12.9M)
 ·             Net Revenue Retention(4) was 108% as existing customers manage more
               subscriptions through the DVM
 ·             Adjusted EBITDA(5) grew by over 60% and is expected to be in excess of $6.5M
               (1H24: $4.0M)
 ·             Net debt(6) rose to $7.3M at 30 June 2025 (30 June 2024 $5.1M) driven by
               planned working capital movements and supported by the previously announced
               enhanced loan facility with NHN and the $15M revolving credit facility which
               were secured to strengthen the balance sheet and enable acceleration of
               planned efficiency improvements.

 

Operational Highlights

 

 Existing Customers
 ·             Active subscriptions managed by the Digital Vending Machine® (DVM(TM)) at the
               end of 1H25 doubled (vs end 1H24) to 19.2M
 ·             A leading social media platform is using the DVM to grow their subscription
               customers through Telco bundled offers in India
 ·             Sirius XM (US based music streaming service) expanded their use of the DVM
               (beyond enabling Telcos to bundle their services) to bundle third-party
               subscription services (e.g. Fox Nation) with Sirius XM subscriptions directly
               to their customers, as content providers increasingly adopt this model

 New Customers
 ·             7 new DVM customers won in 1H25 (compared with an average of 9 per year for
               the past two years). Highlights include:
               o                                         Additional US Telco win, the DVM has now been adopted by 6 of the top 8 US
                                                         Telcos
               o                                         First DVM customer in South Korea as Korea Telecom use the DVM for bundling,
                                                         initially focusing on AI based subscriptions
               o                                         First Telco DVM customer in Japan
               o                                         New DVM customer in Western Europe as Telcos in Europe transition from
                                                         analysis to implementation

 Product & Ecosystem
 ·             116 content providers are now integrated with the Digital Vending Machine
 ·             Launched the world's first fully integrated Super Bundling platform,
               incorporating new capabilities and technology into the DVM including the CX
               (user interface) and powerful offer management and orchestration features
 ·             Cable operator Altice (US) became the first customer to go live with the DVM
               CX (user interface)

 

 

Paul Larbey, Chief Executive Officer of Bango, commented:

 

"During 2025, the Digital Vending Machine® (DVM) footprint has significantly
expanded, with close to 20 million active subscriptions now managed by the
Bango DVM - double that of 12 months ago and driving a 21% growth in recurring
revenue.

 

New customer momentum is continuing to build. In the first 6 months of 2025,
we won 7 customers - compared to an average of 9 in 12 months for the prior 2
years.

 

The global adoption of the DVM is accelerating as customers operating in new
territories including Korea, Japan and India join 6 of the top 8 US Telcos in
selecting the Bango DVM as their bundling platform. This expanded customer
footprint offers significant opportunity for future revenue growth.

 

The core, high margin, transactional routes grew faster than expected at 10%,
though this growth was masked by volatility in a small number of high cost of
sales routes acquired with DOCOMO Digital.

 

Adjusted EBITDA grew by more than 60% year on year as the benefits from our
cost reduction initiatives begin to deliver savings. The financing secured in
June to strengthen the balance sheet has allowed the acceleration of these
initiatives which will deliver increased savings in the second half of the
year.

 

With reducing operational expenses and a growing market presence, Bango is
well positioned for strong, scalable and sustainable growth. A solid
performance in the first six months of the year underpins the Board's
continued confidence in meeting full-year market expectations."

 

 

(1) DVM & One Off Revenue includes all DVM license and support fees,
revenue from Bango Audiences (discontinued in Q1 2024) and one-off fees
including DVM set-up and change requests.

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

(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 2025.

(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 a period by the ARR
generated from those same customers at the beginning of the period.

(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 borrowings less cash and cash equivalents plus short-term
investments.

 

 

Engage with the Bango management team directly by asking questions, watching
video summaries and seeing what other shareholders have to say. Navigate to
our interactive Investorhub

here: https://bangoinvestor.com/link/eNm5ly

 

 

ENDS

 

 

For further information, please contact:

 

 Investor questions on this announcement                    https://bangoinvestor.com/link/eNm5ly

 We encourage all investors to share questions

 on this announcement via our investor hub
 Bango PLC                                                 +44 1223 617 387

 Paul Larbey, CEO

 Matt Wilson, CFO
                                                           +44 20 7496 3000

 Singer Capital Markets (Nominated Adviser and Broker)

 Jen Boorer

 Asha Chotai

 Oliver Platts
                                                           +44 (0)20 7523 8000

 Canaccord Genuity (Joint Broker)

 Simon Bridges

 Harry Gooden

 George Grainger

 

 

Subscribe to our news alert service: https://bangoinvestor.com/auth/signup
(https://bangoinvestor.com/auth/signup)

 

 

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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