Bango warns on FY earnings as end user spend doubles
Bango
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16:55 19/04/24
Mobile payments company Bango said full year earnings would be below expectations, despite a positive fourth quarter and higher end user spend.
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In a trading update, Bango said earnings before interest, tax, depreciation and amortisation “would be positive for fourth quarter of 2018, but not for the year as a whole”.
“Management has decided to take revenue on several new contracts for subscription services as long-term, higher value annuity revenues rather than one-time, up-front fees this year,” Bango said.
It added that end user spend (EUS) was expected to more than double in 2018, continuing a four-year trend of more than 100% growth.
Total end user spend in 2017 was £271m, but Bango said it expected more than £550m for 2018.
“During 2018 there were several Google Play activations, and the pipeline of new opportunities continues to grow. EUS from physical goods, and a range of streaming video and audio services, is growing well,” the company said.
"Trading as Bango enters 2019 is going well. The payment business continues to thrive, and the increasing pipeline of EUS that can move over to the Bango Platform gives confidence that rapid EUS growth on a stable cost base can continue."
"The launch of the Bango Marketplace on 13 December opens up new revenue streams for 2019 and beyond, building on unique Bango technology and the technology and relationships acquired earlier this year with Audiens SRL."