Bango PLC ("Bango") Trading Update

Rhea-AI Summary

Bango PLC (AIM: BGO) released a trading update for the first half of 2024, reporting strong financial growth. Key highlights include:

- Total revenue up 19% to $24.1M
- Transactional Revenue grew 6% to $16.4M
- DVM, Audiences & One-Off Revenue increased 64% to $7.7M
- Annual Recurring Revenue (ARR) up 130% to $12.9M
- Adjusted EBITDA expected to exceed $4.0M

Operationally, Bango signed 4 new DVM contracts, including its first in the financial services sector. The company added 13 new subscription content providers to its Digital Vending Machine, bringing the total to 106. Bango also joined the Amazon AWS Partner Network, creating new business opportunities.

Positive

• Total revenue increased by 19% to $24.1M
• Annual Recurring Revenue (ARR) grew by 130% to $12.9M
• Adjusted EBITDA expected to be greater than $4.0M, compared to -$0.2M in 1H23
• Net Revenue Retention from existing telcos was 159%
• Signed 4 new DVM contracts, including first in financial services vertical
• Added 13 new subscription content providers to DVM, total now 106
• Joined Amazon AWS Partner Network, creating new business opportunities

Negative

• Net debt of $5.0M at 30 June 2024

CAMBRIDGE, United Kingdom, July 15, 2024 (GLOBE NEWSWIRE) -- 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)

•	Total revenue up 19% to $24.1M (1H23 $20.3M)
	•	Transactional Revenue1 from the payments business grew by 6% (9% in constant currency) to $16.4M (1H23 $15.5M).
	•	DVM, Audiences & One-Off Revenue2 grew by 64% to $7.7M (1H23 $4.7M) driven by growth of the Bango Digital Vending Machine® (DVMTM).
•	Annual Recurring Revenue (ARR)3 up 130% to $12.9M (1H23: $5.6M) due to DVM usage growth and new customer wins.
•	Net Revenue Retention4, a measure of the growth in ARR from telcos active in 1H23 was 159%
•	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.
•	Adjusted EBITDA5 is expected to be greater than $4.0M (1H23: -$0.2M).
•	Net debt6 of $5.0M at 30 June 2024.

Operational Highlights

•	Bango signed 4 new DVM contracts in the first half including a Latin American bank – the first DVM win in the financial services vertical.
•	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.
•	2 existing partners, 1 in North America and 1 in Europe, activated additional DVM capabilities to enable new propositions for their customers.
•	13 new subscription content providers were added to the DVM, taking the total to 106.
•	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.
•	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.
•	The global technology leader announced in June 2022 launched its first two telcos with Bango in 1H24. Additional launches are planned in 2H24.
•	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.
•	Chartered Accountant Tony Perkins joined the Bango Board as a Non-Executive Director and Chair of the Audit Committee.
•	BDO LLP appointed as new auditor.

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.

Contact Details:  

Bango PLC	Singer Capital Markets (Nominated Adviser and Broker)
+44 1223 617 387	+44 20 7496 3000
investors@bango.com
Paul Larbey, CEO	Jen Boorer
Matt Garner, CFO	Asha Chotai

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, Google and Microsoft trust Bango technology to reach subscribers everywhere.

Bango, where people subscribe. For more information, visit www.bangoinvestor.com

FAQ

What was Bango's (BGOPF) total revenue for the first half of 2024?

Bango's total revenue for the first half of 2024 was $24.1 million, up 19% from $20.3 million in the same period of 2023.

How much did Bango's (BGOPF) Annual Recurring Revenue (ARR) grow in 1H 2024?

Bango's Annual Recurring Revenue (ARR) grew by 130% to $12.9 million in the first half of 2024, compared to $5.6 million in the first half of 2023.

What was Bango's (BGOPF) expected Adjusted EBITDA for 1H 2024?

Bango's Adjusted EBITDA for the first half of 2024 is expected to be greater than $4.0 million, compared to -$0.2 million in the first half of 2023.

How many new Digital Vending Machine (DVM) contracts did Bango (BGOPF) sign in 1H 2024?

Bango signed 4 new Digital Vending Machine (DVM) contracts in the first half of 2024, including its first in the financial services vertical with a Latin American bank.