Bango plc (LON:BGO) reported rapid growth in its mobile payments platform and margins remained in line with market expectations.
In a trading update for the six months ended June 2016, Bango reported annualised End User Spend (EUS) had increased 283% year-on-year to £159mln, ahead of expectations.
The group said rapid growth in EUS was driven by app and content sales as its Bango Boost payment technology is rolled out across existing partners.
To drive future growth, the group has activated multiple new routes 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 in India.
Since the end of the period, the platform processed more than twice the EUS using the same technology, within the existing cost base.
“The Bango Payment Platform has been tested at £650mln annualized spend levels and has the capacity to be able to support EUS well beyond likely cash flow positive spend levels,” said the group.
The recent acquisition of the BilltoMobile carrier billing services from Danal Inc also introduced a number of new revenue streams to the Bango Payment Platform.
Although only making a small contribution to EUS (around £50mln), the acquisition has considerable potential for growth, said the group.
“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,” said Bango chief executive Ray Anderson.
Shares rose 4.6% to 57p.
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