Bango (AIM: BGO), the mobile commerce company, today announces its Final Results for the year ended 31 December 2017.
Bango reports increased revenue and continuing growth
FY2017 Financial performance
- End User Spend (EUS) increased 105% to £271.4m (FY2016: £132.3m)
- Revenue increased 62% to £4.2m (FY2016: £2.6m)
- Total admin costs were £5.7m (FY2016: £5.0m) in-line with market expectation
- Bango operational costs were stable at £2.3m (FY2016: £2.4m), demonstrating the high scalability of the platform
- Adjusted LBITDA* improved to -£1.6m (FY2016: -£2.8m)
- Cash at 31 December 2017 was £4.8m (31 December 2016: £5.7m)
- EUS run rate exiting February 2018 was £465m/year
*Adjusted LBITDA is the loss before interest, tax, depreciation, amortization and share based payment charge.
FY2017 Operational performance
- New content capabilities: Amazon launched Direct Carrier Billing (DCB) for retail goods to customers in Japan using the Bango Platform, demonstrating ability of the platform to handle the complete “shopping cart” experience, including multi-part ordering, billing and fulfilment, and partial refund
- Payment diversity: the Bango Platform proved its flexibility to handle alternative payment methods beyond DCB, launching new mobile money wallets in 2017, including the 9mobile wallet in Africa
- Google Play upgrades: Three mobile operators upgraded their Google Play routes from legacy bi-lateral (direct) connections to the Bango Platform, and benefitted from enhanced performance, higher sales and improved data insights
- New product capabilities: Many product enhancements were launched in 2017, including unique comparative benchmarking in Bango Boost, and new capabilities to support IoT usage and bundled pricing
- Growth from industry leaders: Bango expects growth from DCB for Amazon physical goods in Japan, resale and bundling for Amazon Prime in India and beyond, continued growth for Google Play and from new merchants worldwide
- Data monetization opportunity: Bango is deepening customer relationships and opening new revenue streams by providing further ways to monetize data from mobile operators and the Bango Platform and using the Audiens technology acquired in January 2018
- On track to double End User Spend in 2018: The Bango Platform will comfortably handle at least a doubling of EUS at current stable cost levels, with a strong pipeline of new relationships and upgrade opportunities with existing partners
- Stable cost-base: The Bango Platform was tested to a capacity of over £5bn transactions a year in mid-2017
Ray Anderson, Chief Executive Officer of Bango, commented: "The Bango Platform enables leading merchants across the world to grow their sales faster by opening-up payments to more users and by using the unique data that only Bango can provide. Sales through the Bango Platform more than doubled in 2017, while the core operating costs remained stable. Bango added new customers, new payment routes and continual enhancements to the Bango Platform, developing and investing in new technology, providing more opportunities for Bango customers to expand and diversify their businesses. Growth with existing routes and substantial opportunities in the sales pipeline make Bango confident in continued substantial EUS and revenue growth in the coming year.”
App developers, stores and payment providers cross the threshold into the Bango ecosystem to converge, grow and thrive.