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Bango expecting end user spend to double once again in 2018

“Trading as Bango enters 2019 is going well. The payment business continues to thrive, and the increasing pipeline of EUS that can move over to the Bango Platform gives confidence that rapid EUS growth on a stable cost base can continue.”
e commerce
The group has enough money in the bank to see it through to profitability

Mobile payments group Bango plc (LON:BGO) expects end user spend to more than double in 2018, continuing a four-year trend of more than 100% growth.

Total end-user spend in 2017 was £271mln, but the AIM company is guiding for that figure to be more than £550mln this time around.

WATCH: Bango Plc enters next phase of growth with launch of Bango Marketplace

Underlying earnings (EBITDA) will be positive for the final quarter of the year (Oct-Dec), but not for the year as a whole.

That’s because management has decided to take revenue on several new contracts for subscription services as long-term, higher value annuity revenues rather than one-time, up-front fees this year.

Despite the short-term setback, Bango’s guidance for “continued significant” revenue and EUS growth in 2019 remains unchanged.

Cash at the end of the year is expected to be in excess of £3.5mln – more than enough to take the group to profitability.

“Trading as Bango enters 2019 is going well,” said chief executive Ray Anderson.

“The payment business continues to thrive, and the increasing pipeline of EUS that can move over to the Bango Platform gives confidence that rapid EUS growth on a stable cost base can continue.

“The launch of the Bango Marketplace on 13 December opens up new revenue streams for 2019 and beyond, building on unique Bango technology and the technology and relationships acquired earlier this year with Audiens SRL.”

Bango shares dipped 2.7% to 82.8p.

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