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Overview

Bango Plc (AIM: BGO) allows smartphone and tablet users to pay for apps, games, music and video via one click, which adds the payment to their phone bill. This is known as Direct Carrier Billing (DCB), and Bango take a fee from each transaction going through their system.

Bango’s technology sits on both the app stores and mobile operators servers – acting as an interface between mobile users, the app stores and network operators. And because they are gathering and analysing data from all these parties, they are able to advise  partners of potential optimisations  – recommendations which help increase end user spend and conversion rates.

Global leaders plugging into Bango include Amazon, Google, Samsung, and Microsoft, and the company have over 140 payment routes activated, with a 40% share of the direct carrier billing market (Progressive Equity Research, March 2016).

www.bango.com

Directors

  • Ray Anderson (CEO): Co-founder. Established IXI, early leader in creation of web. Founding investor; Electronic Share Information (sold to E*Trade)
  • Rachel Elias-Jones (CFO): 5yrs at ‘Top 5’ audit firms
  • Anil Malhotra (Chief Marketing Officer): Co-founder. 16yrs marketing experience
  • David Sear (Chair & NED): CEO of Weve. Chair Semafone. Div MD at Travelex (2006-2012)
  • Martin Rigby (NED): Founder & MD of ET Capital
  • Gianluca D’Agostino (NED): Founder of  Neomobile SPA (2007)

Financials

P&L2017
£~000
2016
£~000
End user spend271.4132.3
Revenue4.152.6
Gross Profit4.152.6
Proft/ (Loss) Before Tax(3.9)(4.7)
BALANCE SHEET2017
£~000
2016
£~000
Total Assets13.9714.1
Total Liabilities3.31.8
Cash & Cash equivalents4.855.7

Peer Group

  • Earthport (AIM: EPO): Cross-border payment services to banks and businesses
  • EservGlobal (AIM:ESG): Mobile banking & financial services software
  • Planet Payment (NASDAQ: PLPM): International payment and data processor

Major Shareholders

Management

  • Ray Anderson – 9.37%
  • Anil Malhotra – 5.68%
  • Martin Rigby – 0.25%
  • Rachel Elias-Jones – 0.01%

Others

  • Liontrust Asset Management – 15.34%
  • Herald – 12.77%
  • Odey AM – 12.41%
  • Hargreave Hale – 4.18%
  • Cavendish Asset M’gt – 4.66%
  • Inflection Point Investments – 3.99%

Macro Indicators

Gartner (Sep 2013)
“Mobile app stores will see 11.1 billion paid-for downloads in 2014.”

IDC Worldwide Quarterly Mobile Phone Tracker 2014
“A total of 1,004.2 million smartphones were shipped in 2013, up 38.4% from 725.3 million in 2012.”

Gartner (Sep 2013)
“In 2013 there were 102 billion app store downloads globally, amounting to $26bn in sales. By 2017, it is projected that there will be 268 billion app downloads annually, amounting to $77bn in revenue.”

Media Coverage

This is Money (Mar 2018)
“SMALL CAP IDEAS: Payments platform Bango surges on strong growth prospects with end-user spend doubling to £271m”

Investors Chronicle (July 2018)
“Bango, solid update shares sluggish”

 

Broker Coverage

Progressive Equity Research (Mar 2018)
“Momentum remained strong during the year, with End User Spend (EUS) confirmed as having more than doubled but opex having grown by just 13%. The positive outlook statement will give confidence in the near-term financial performance.”

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