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)
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Total revenue up 19% to $24.1M (1H23
$20.3M)
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Transactional Revenue1
from the payments business grew by 6% (9% in constant currency) to
$16.4M (1H23 $15.5M).
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DVM, Audiences & One-Off
Revenue2 grew by 64% to $7.7M (1H23 $4.7M) driven by
growth of the Bango Digital Vending Machine®
(DVMTM).
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Annual Recurring Revenue
(ARR)3 up 130% to $12.9M (1H23: $5.6M) due to DVM usage
growth and new customer wins.
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Net Revenue
Retention4, a measure of the growth
in ARR from telcos active in 1H23 was 159%
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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.
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Adjusted EBITDA5 is
expected to be greater than $4.0M (1H23: -$0.2M).
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Net debt6
of $5.0M at 30 June
2024.
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Operational Highlights
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Bango signed 4 new DVM contracts in
the first half including a Latin American bank - the first DVM win
in the financial services vertical.
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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.
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2 existing partners, 1 in North
America and 1 in Europe, activated additional DVM capabilities to
enable new propositions for their customers.
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13 new subscription content
providers were added to the DVM, taking the total to
106.
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A total of 16 eDisti7
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.
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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.
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The global technology leader
announced in June 2022 launched its first two telcos with Bango in
1H24. Additional launches are planned in 2H24.
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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.
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Chartered Accountant Tony Perkins
joined the Bango Board as a Non-Executive Director and Chair of the
Audit Committee.
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BDO LLP appointed as new
auditor.
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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.
3Annual 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.
5Adjusted EBITDA is
earnings before interest, tax, depreciation, amortization, negative
goodwill, exceptional items, share of net loss of associate and
share based payment charge
6Net 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:
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Bango PLC
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Singer Capital Markets (Nominated Adviser and
Broker)
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+44 1223 617 387
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+44 20 7496 3000
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investors@bango.com
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Paul Larbey, CEO
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Jen Boorer
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Matt Garner, CFO
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Asha Chotai
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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