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Bango margin in-line with expectations

By BFN News | 07:42 AM | Monday 11 July, 2016


Bango, the mobile payments company, says annualised end user spend exiting June 2016 increased by 283% year-on-year to £159m and the group's margin remains in-line with its and market expectations. Excluding recently acquired BilltoMobile business, annualised EUS exiting June 2016 grew 143% year-on-year to £101m. An update says: "During 1h2016, the rapid growth in EUS has been driven primarily from established activations as a result of growth in app and content sales, augmented by the increasing use of Bango Boost technology by existing Bango partners. To drive future growth in EUS, multiple new routes have been activated across the major app stores including European launches for Microsoft's cross-device Windows Store and the first launch for Google Play Direct Carrier Billing (DCB) in India. "Since June 2016, the Bango Payment Platform is now processing more than twice the EUS using the same technology and operational processes and within the existing cost base, consistent with Bango's technology-led platform strategy. As previously stated, the Bango Payment Platform has been tested at £650m ($1bn) annualised spend levels and has capacity to be able to support EUS well beyond likely cash flow positive spend levels." Bango says that following the acquisition of the BilltoMobile carrier billing services from Danal Inc., BilltoMobile services are now being managed and monitored by the Bango Platform Operations Team, supported by Bango employees based in Palo Alto, CA. All services continued to operate without interruption throughout the transition period. The acquisition also introduced a number of new revenue streams to the Bango Payment Platform. These only make a small contribution to EUS, but have considerable potential for growth by exploiting the reach and capabilities of the Bango Payment Platform, and will be announced in due course. Chief executive Ray Anderson said: "Bango has created a powerful and flexible payment platform that can handle significant growth in End User Spend on a fixed cost base. In addition to the strong growth in End User Spend on the existing Bango Payment Platform, the acquisition of BilltoMobile added around $80m of End User Spend in one step, together with new operator and merchant partnerships. "I'm pleased to report that the Bango team has accomplished the first phase of the transfer of business quickly and efficiently within existing Bango systems, and with no additional operating cost or disruption to BilltoMobile customers. We are excited to move to the next phase which involves providing BilltoMobile customers with access to Bango Boost technology, enabling them to grow their carrier billing sales more quickly." Story provided by StockMarketWire.com

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