Bango: Interim Results
Bango (AIM: BGO), the mobile payments company, today announces its unaudited interim results for the six months ended 30 June 2017.
1h2017 Financial highlights
- 1h2017 End User Spend (EUS) increased 100% YoY to £92.31m (1h2016: £46.17m)
- Annualized EUS exiting August 2017 was over £400m, at least 140% more than the rate entering September 2016 (£167m)
- Revenue from EUS increased 114% YoY to £1.65m (1h2016: £0.77m)
- Improved Adjusted LBITDA* -£1.01m (1h2016: -£1.64m)
- Operating costs stable at £2.72m (1h2016: £2.49m) in-line with forecast
- Cash of £5.6m on 30 June 2017 (30 June 2016: £7.2m; 31 Dec 2016: £5.7m), sufficient to fund the Group through to profitability
* Adjusted LBITDA is Operating Loss before depreciation, amortization and share based payments.
1h2017 Operational highlights
- DCB for Amazon in Japan: Launched Direct Carrier Billing (DCB) for Amazon in Japan. Customers on the NTT Docomo and KDDI networks can pay for the full range of physical goods from amazon.co.jp, charging the cost to their mobile phone bill. The scale of this launch is unprecedented, enabling DCB for physical good sales in Amazon’s third largest market
- New billing routes: Activated more Direct Carrier Billing (DCB) routes in Indonesia, Italy, Austria, Denmark, UK, Hong Kong, Japan, Verizon in the US, the biggest MNO to launch with Windows Store and more. Migrated two further Google Play billing routes from legacy providers to the Bango Platform in Kuwait and Bahrain
- Platform capacity: Tested the transaction throughput of the Bango Platform to volumes over £5Bn per year on the existing infrastructure, as well as the ability to handle large spikes in transaction volumes, in readiness for the expected growth in EUS
Delivering on the platform strategy
- Develop vital technology: Evolved 5th generation platform technology to enable DCB for physical goods, new capabilities include multiple item checkout, delayed invoicing, part shipments, partial payments, refunds and chargeback processing
- Win leaders to the Bango Platform: First Amazon DCB route launched through Bango in Japan, demonstrating that Bango remains the standard platform chosen by leading global stores to deliver innovative mobile payment solutions. The Bango strategy is to focus on the global leaders that have the ability to reach tens of millions of consumers with the Bango Platform, enabling improved user experiences and more efficient marketing for all Bango customers
- Build momentum and deliver value: Migration of established Google Play payment routes to the Bango Platform to stimulate growth. Initial uplift in user spend of 35% experienced immediately, with over 25% increase in unique users. Award-winning Bango Boost post-launch technology is applied to all routes to stimulate further EUS growth
- Add new capabilities and products: Bango Boost v2 launched, to provide major developers including Niantic, Supercell and King with unique insights into consumer behavior. Bango Boost enables more efficient marketing, boosts EUS growth and improves customer experience
Ray Anderson, Chief Executive Officer at Bango, commented:
“With a unique, powerful technology platform and winning strategy to power the world’s leading online stores, Bango continues to gain rapid momentum. The largest internet businesses are expanding their use of the Bango Platform to reach new customers and increase the return on their marketing investments.
Adding to the substantial growth achieved by expanding the reach of Google Play and Microsoft Windows Store, in June 2017 Bango technology enabled Amazon to start using carrier billing to collect payments from consumers buying physical goods in Japan.
New capabilities and unique innovations added to the Bango Platform over the last few years are now starting to be used to open similar opportunities worldwide. Bango continues to invest in the development of its platform to embrace additional routes and markets and attract further innovation on the Bango Platform.
Merchant partners benefit from fast growth in existing billing routes, and new payment routes added through the year. New customers with ambitious growth plans are also coming to the Bango Platform as a result of business development activity – especially in the USA and Japan. Bango therefore remains confident of achieving at least 100% year-on-year growth in End User Spend for the third consecutive year.”
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Bango obligations under Article 17 of that Regulation.