Bango cuts losses as end user spend more than doubles
Source - SMW
Bango narrowed annual pre-tax losses as annual end user spend more than doubled and boosted revenues.
For the year ended 31 December 2018, pre-tax losses narrowed to £3.57m from £3.92m a year earlier and revenue increased 60% to £6.62m.
End User Spend (EUS) increased 106% to £558.2m from £271.4m a year earlier.
Adjusted losses (LBITDA) improved to £0.87m from a loss of £1.57m a year earlier.
In December, the company said earnings (EBITDA) would be positive for fourth quarter of 2018, but not for the year as a whole, and therefore below market expectations, which the company blamed on a change in the way it recorded revenue.
The Group delivered solid revenue growth of 23% in its core mature markets of the UK and Germany, which together comprised 53% of total revenue. Scandinavia revenues were down by 6%, driven by unfavourable foreign currency impact between Sterling and Krona.
For2019 Bango detailed two main areas of focus, including growing end user spend by more than 100% year-on-year, and gaining significant new revenue from the $50bn app developers spend on app marketing by offering access to audiences through Bango Marketplace.
'This additional revenue stream is expected to drive further growth in the payments business as partners become increasingly aware that by processing payments through Bango, they can also drive revenue from the data collected,' the company said.
'App developers, app stores, merchants and payment providers are crossing the threshold into the Bango ecosystem to collaborate, grow and thrive. More mobile commerce throughout the Bango Platform will deliver value from both the established payment platform and also from the unique ability to securely and safely monetize anonymized payment data. This is the opportunity that Bango will focus on during 2019,' said Ray Anderson, Chief Executive Officer of Bango.
At 10:04am: (LON:BGO) Bango PLC share price was -10p at 88.5p