Bango PLC (AIM:BGO, OTCQX:BGOPF) has forecast continued growth in 2025, buoyed by strong early sales of its Digital Vending Machine and improved financing arrangements that give the subscription technology group more room to manage costs.
The Cambridge-based company, which enables telcos and retailers to bundle streaming and other digital services, said it had already signed four new customers in the first quarter of 2025, more than half the total added in the whole of the previous year.
Two more deals have followed in the second quarter, including Bango’s first contract in South Korea.
Chief executive Paul Larbey said the business was “uniquely placed to benefit from the structural shift toward subscription-based services”, with its Digital Vending Machine now used by six of the top eight US telecoms providers.
The company also reported that recurring annual revenues had climbed 59% to $14 million by the end of 2024.
Group revenue for 2024 rose 16% to $53.4 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to $15.3 million, helped by cost controls and operational leverage.
The business remains loss-making, but it narrowed its post-tax loss to $3.7 million from $8.8 million the previous year.
The payments division, which provides direct carrier billing services allowing mobile users to pay for digital content through their phone bills, also recorded 11% revenue growth.
However, lower-margin routes acquired through its 2022 purchase of DOCOMO Digital performed below expectations. Bango said these routes had little impact on profitability and that several underperforming ones had already been shut down.
The group’s financial position has been bolstered by a new $15 million revolving credit facility from NatWest and an amended loan from Korean shareholder NHN. Bango said the new financing arrangements would give it the flexibility to accelerate efficiency measures and invest in its growing platform.
It expects adjusted EBITDA for 2025 to meet market forecasts, with an additional $1 million uplift anticipated in 2026, helped by reduced research and development spending.