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Bango confident over prospects as end user numbers climb

Snapshot

  • Mobile payments platform operator
  • Swung to profit in 2019
  • Could see a boost during pandemic, says finnCap
Mobile payments

Quick facts: Bango PLC

Price: 215.9 GBX

LSE:BGO
Market: LSE
Market Cap: £160.74 m
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What Bango does

Bango PLC (LON:BGO) is a mobile commerce operator that connects payment providers, merchants, and app stores.

The firm works with tech giants such as Google, Amazon, and Microsoft to help them process payments from their mobile customers across their app stores.

Bango also offers insights derived from the data it processes from transactions, allowing businesses to have more visibility on their customers and markets.

 

What it owns

Bango has two main strands to its business, a payments platform and the Bango Marketplace.

The mobile payments platform allows mobile app store customers to click and buy apps or in-app content and placing the charge on their mobile phone bill.

The company’s app store partners include the Google Play Store, the Amazon Appstore, GALAXY Apps from Samsung, and the Windows 10 and Windows Phone Store from Microsoft.

Bango Marketplace, meanwhile, allows mobile app developers to direct their marketing towards target customers by purchasing data segments gathered through the company’s payment platform.

 

How it is doing

Online sales and eCommerce have come of age during the coronavirus pandemic, giving Bango a huge boost.

The business recently announced its first notable trading profit as sales jumped three-fold to £12mln, but this might just be the start of a period of supercharged growth for the AIM-listed group.

Revenues in the twelve months to end December 2020 rose by 70% to £12.2mln, while underlying profits (adjusted EBITDA) jumped to more than £4mln from £450,000, while end-user spend, another key metric, rose to £1.9bn from £1.1bn.

In January it partnered with TPAY MOBILE, a digital payments platform for the Middle East, Africa and Turkey, to increase access to digital commerce and accelerate its entry into new markets.

 

What the boss says: Paul Larbey, chief executive

"This trading update clearly demonstrates strong growth for Bango and for our customers during a tumultuous year. Global lockdowns have driven more users online and accelerated the adoption of digital payments by merchants and consumers, which will continue to drive-up end-user spend."

"During 2020 Bango successfully grew the existing business and won new deals, which puts Bango in a stronger position than ever at the start of 2021."

 

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What the broker says

Liberum said Bango might be a beneficiary from the operating system row between Apple and Facebook.

Facebook and other media players may be hindered in providing audiences to target ads and improve conversion rates.

The broker sees this as being extremely positive for Bango, which is able to provide apps developers with valuable purchase data-based audiences to enable better targeting of advertisements, using the underlying data from its Payments business.

The use of audiences from Bango Marketplace enables apps developers to increase the efficiency of their advertisements by up to 9 times.

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