One-click mobile carrier billing company Bango (BGO:AIM) continues its long walk to profit, now in its 11th year and counting. The headline reads a 250% hike in end user app store spend, or EUS, to £159 million (on an annualised basis) in the first half to 30 June.

What this ultimately means is a 39% rise in core revenues of £0.85 million for the period on EUS of £46.2 million. The company states a 1.67% average margin on EUS, down from 2.06% a year ago.


Bango's share price has had a blistering run since the start of June, up nearly 120% before today's figures, largely thanks to a Pokemon GO frenzy. Whether that amounts to anything meaningful, we'll have to wait and see.

The stock dipped close on 6% on these results to 87.5p.


Certainly Bango's EUS is rising fast yet our calculations suggest it'll require another £200 million EUS on top of the £159 million annualised announced today before it even washes its face at the EBITDA level. And that, of course, presumes no further drag on EUS margins.

In the meantime, with £7.2 million of cash, Bango has an enterprise value of £48.2 million, or more than 18-times likely annualised revenue. Which equally means that the £55 million EUS added with May's BilltoMobile deal is now being valued at £16.9 million, when just four months back it was snapped up for just £2.5 million.

Issue Date: 20 Sep 2016