Bango PLC (AIM:BGO, OTCQX:BGOPF) has reported sales up 59% in its latest full year as it received a first contribution from August’s acquisition of DOCOMO Digital from Japanese telco NTT.
Total revenues were US$32.9mln, up from US$20.7mln a year earlier, while annual recurring revenues were five times higher at US$5mln.
DOCOMO’s addition meant a short impact on gross margins, said the telecom-focused payments group, which dipped to 80%, but it noted that they should return to 90% in the current year.
Underlying profits in 2022 will also dip to around US$4.1mln from US$6.1mln due to the higher cost of sales of some DOCOMO customers, Bango added.
End-user spending rose to US$5.6bn (2021: $4.1bn) with the annual run rate at the end of the year at US$8.6bn.
Bango acquires NTT DOCOMO payments business
In a statement, Paul Larbey, Bango chief executive commented: "2022 was a transformational year for Bango. We acquired a significant competitor, with a high-quality customer base, doubling the size of our business and accelerating our growth plans by more than two years.
“We added more merchants to the Platform than in any previous year, and Bango is now the number one telco integrations partner for both Amazon and Google.”
Recurring revenue was driven by its digital vending machine proposition, he said, which was adopted by leading telcos including T-Mobile US and Liberty Global, and boosted by the launch and expansion of services with existing customers, such as Verizon +Play and BT.
Larbey added: “Headwinds in the advertising market mean marketers are under more pressure than before to achieve a return on their ad spend, increasing the demand for Bango purchase behaviour targeting”.
Cash at the year-end rose to US$9.7mln from US$5.7mln.