Bango generated strong growth during the first half of FY23 with revenue up 88% to $20.3M (1H22 $10.8M), in line with management expectations.
The Bango Digital Vending Machine (“DVM”) continued to drive growth, with ARR up 64% to $5.6M (1H22: $3.4M) and remains on track to reach $10M by the end of 2023. Bango signed new DVM contracts in the first half, with BenefitOne and 2 US telcos, including another top 5 operator. These new US contracts will begin generating ARR in 2H23. The Bango DVM now enables digital subscription services for 3 out of the top 5 US operators, serving 61% of US consumers.
Adjusted EBITDA* in 1H23 is expected to be -$0.4M (1H22: $2.9M), in line with management expectations, reflecting the costs associated with the DOCOMO Digital integration. The integration is progressing well with actions already taken to deliver $19M of the $21M of guided cost synergies. The benefit from synergy actions and the typical second half revenue weighting underpins management’s confidence in delivering EBITDA in line with market expectations for the full year.**
Gross profit margin remained high at 90% in 1H23 (FY22: 91%). As at 30 June 2023, Bango had net cash of $13.4m (31 December 2022: $9.5M***), including the previously announced $8M NHN loan. This is as a result of the phasing of working capital movements, which has positively impacted the first half.
Paul Larbey, Chief Executive Officer of Bango, commented:
“Bango made great progress in the first half of the year with 88% revenue growth, demonstrating the momentum in the business. Traction of the Digital Vending Machine is clear, particularly in the US market, with a further 2 key US wins. Fast DVM growth means recurring, multi-year SaaS revenue is becoming an increasing proportion of the Bango revenue mix. The high-profile launch of Verizon +Play in March sets a clear standard for super bundling globally and I am excited by the deals we have in the pipeline”.
* Adjusted EBITDA is earnings before interest, tax, depreciation, amortization, share based payment charge and exceptional items.
** Market consensus can be found here: https://bangoinvestor.com/analyst-consensus
*** Excludes cash $3M previously marked as restricted for discontinued operations
This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").
Image: Paul Larbey, CEO
