Bango PLC (AIM:BGO, OTCQX:BGOPF) posted a 62% increase in revenues to $46.1 million (£36.3 million) last year as a host of new contracts started to contribute.
This growth was attributed to Bango's payments segment during the second half of the year.
Bango signed nine new long-term contracts for its Digital Vending Machine (DVM), catapulting its telco annual recurring revenue (ARR) to $8.8 million by December 2023, a 76% leap from the previous year.
A significant improvement was also reported in its underlying profits (EBITDA), which is expected to come in somewhere between US$5.2 million and US$6.2 million in the second half, from a small US$0.2 million loss in the first.
This is slightly below City expectations due to lower-than-expected revenue recognition, unplanned cost of sales from a legacy non-core direct carrier billing business, and a US$1 million foreign exchange impact from intercompany loans.
But the company anticipates further profitability enhancements in 2024, following the move to a new DOCOMO Digital platform.
Bango ended the year with a cash reserve of US$3.75 million, ahead of analyst predictions. Bango said it is well-positioned to return to a positive net cash status in 2025.
Touching on operational achievements, Bango introduced 33 new content providers to its DVM in 2023, expanding its subscription catalogue to 93 providers.
The launch of a new consumer user interface is expected to expedite future telco launches, positioning Bango at the forefront of digital subscription services.
Paul Larbey, Bano’s chief executive, expressed confidence in the company's trajectory, citing the vast market opportunity for the Bango DVM and the firm's strong positioning to capitalise on these opportunities in 2024 and beyond.
He stated: “With 77% of US consumers saying they want to pay for all their subscriptions on one, consolidated bill, there is a clear call for much greater control over this spending and for easier management of multiple subscriptions. These needs are met by the Bango Digital Vending Machine.
“The market opportunity is vast and we enter 2024 with a strong ARR base and seven times more DVM prospects in the pipeline compared to a year ago. I am confident Bango is well positioned to take advantage of the market opportunity in 2024 and beyond."