viewBango PLC

Bango bounces as it forecasts record revenue growth for first half

The mobile commerce firm expects to report revenue growth of over 50% to £4.8mln year-on-year, while adjusted earnings are predicted to exceed the £450,000 figure for the whole of 2019

Bango PLC - Bango forecasts record revenue growth for first half

Bango PLC (LON:BGO) said it is expecting “record revenue growth ahead of expectations” in the first half of its current year, while end user spending in the full year is expected to hit £2bn.

In a trading update for the six months ended June 30, 2020, the mobile commerce firm said it expects to report revenue growth of over 50% to £4.8mln year-on-year, while adjusted earnings (EBITDA) for the period are predicted to exceed the £450,000 figure for the whole of 2019.

WATCH: Bango CEO hails launch of SoftBank payment option for Amazon in Japan

End user spend (EUS) during the year grew to over £740mln over the period, Bango said, adding that it expects to see a “strong” second half to meet full-year forecasts.

The company added that it is continuing to invest in growing its data insights and monetisation capabilities through its Bango Marketplace, as well as signing a three-year deal with a global telecoms provider during the period worth at least £1.5mln.

"Bango enters the second half of 2020 in a stronger position than ever before. The achievements in the first six months, during a period of unprecedented global uncertainty, are a testament to the strength of the Bango team and the success of Bango customers”, chief executive Paul Larbey said in the update.

“The payments and resale business continues to grow rapidly, increasing profitability and cash generation, thanks to the stable operating costs of the platform. The opportunities for this business are greater than ever, having expanded beyond telco providers to retailers now joining the Bango circle, where data insights help them thrive…With all this exciting progress, Bango is firmly on track to become the technology behind every payment choice", he added.

In a note on Tuesday, analysts at Bango’s house broker finnCap said the update displayed “a very reassuring performance” and that the company was on track to meet their own forecasts for the full year of “strong revenue growth and material profitability”.

“This has been an impressive half for Bango” finnCap said, reiterating their 225p target price on the firm.

The sentiment was echoed by Progressive Equity Research, which said in its own note that the company “continues to demonstrate strong momentum and that the group remains well placed to deliver its [2020] targets”.

Bango shares were up 1.3% at 165.1p in mid-morning trading.

--Adds broker comments and share price--

Quick facts: Bango PLC

Price: 144.5 GBX

Market: LSE
Market Cap: £107.52 m


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Bango PLC named herein, including the promotion by the Company of Bango PLC in any Content on the Site, the Company receives from said issuer...



Market Report: FTSE 100 slides on slow economic recovery expectations

FTSE 100 slid almost 40 points to 6,131 as latest economic data highlighted the UK’s economic recovery from COVID-19 will be slow. Asian and US markets also retreated overnight. Britain’s GDP rose 1.8% in May, far less than hoped for by those predicting a V-shaped recovery. Housebuilding and...

4 weeks, 2 days ago

2 min read