Payment technology group Bango PLC (AIM:BGO, OTCQX:BGOPF) achieved an 88% surge in top-line revenues in the first half of 2023, driven by two contributing factors.
Strong Digital Vending Machine traction in the US, where Bango signed multiple deals including with a top-five telecoms operator, drove organic revenue growth.
The acquisition of NTT DOCOMO’s payments business in 2022 has paid off too, helping contribute to a 66% increase in annual recurring revenue, which hit US$6.6 million in the latest half.
EBITDA took a hit, falling from an underlying profit of US$2.9 million in the first half of 2022 to underlying losses of US$200,000 this year.
These losses were due to exceptional costs associated with the DOCOMO Digital acquisition.
Because of these exceptional costs, losses before tax extended to US$4.9 million, from US$1.2 million in the 2022 interims.
Chief executive Paul Larbey commented: "Our leadership in the telecommunications market was extended by the acquisition of DOCOMO Digital one year ago. Profitability and cash generation will grow, as we deliver on the synergies from the acquisition.
"Our focus on the Digital Vending Machine is already delivering revenue growth. The recurring revenue generated from the DVM deals already won will drive exponential growth in the years to come."
Bango said it was on track to meet expectations for the full year, noting that revenues are typically weighted 60% to the second half.
EBITDA margins are expected to increase as the DOCOMO acquisition takes full effect. Management is targeting US$10 million in recurring revenues for the full year.