Price for a very profitable result
- H1 revenue climbs 49% to £ 7.1million
- App developers using Bango Marketplace have doubled to 4,000 in the past six months
- Largest subscription contract signed to date with a tier 1 American telecom group
Love Bango (BGO: 215p), a provider of a state-of-the-art mobile payment platform that allows smartphone users to charge for purchases made in app stores directly to their mobile phone account, has more than doubled its first half cash profit to £ 2million. , supported by a 74% increase in end-user spending of £ 1.3 billion.
During the period, Bango signed a series of new partnerships, including with NTT Data Hong Kong and T-Pay Mobile (combined with over 1 billion users) to enable merchants connected to the Bango platform access new operators and portfolio billing connections across Asia, the Middle East and Africa. Bango is also increasing its subscription revenue, expanding its deals with Amazon Prime and Microsoft Xbox Game Pass, and announcing its biggest contract to date with a Tier 1 US telecommunications operator. This contract could be worth more than $ 0.5 million. sterling annual income. Platform partnerships enable hundreds of millions of online customers to benefit from offers for products such as Netflix, BritBox, Spotify, Pandora Radio and YouTube TV, all through the Bango platform.
Additionally, Bango benefits from Apple’s decision to give users the choice to opt out of any type of targeting or tracking. Millions of people do, which means app developers value Bango audiences even higher. It’s the monetization side of business data, which improves the return on marketing spend for app developers by providing them with targeted audience groups who are most likely to buy their products. Bango recently partnered with TikTok to bring buying behavior targeting to merchants who market on the social media platform for the first time.
Real estate broker Liberum Capital previously expected Bango’s full-year cash profit to be stable at £ 4.5m on revenue 20% higher at £ 14.7m sterling, with the company absorbing an additional £ 1.9million of investment this year in sales, marketing, R&D and the platform. . However, this forecast is far too conservative given Bango’s 60 percent seasonal weighting in the second half of the year. I can also see some positives to Liberum’s forecast for 2022 (£ 6.2million cash profit over £ 18.5million revenue) given the dynamics of the business.
Bango shares have risen 139% since I launched the cover (“Bang on the money”, September 26, 2016), and 5% more than when I covered the annual results (“Investments for the new normal”, March 25, 2021). Offering 20% up from my high target of 260p, they rate a strong buy.
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