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Bango PLC: DEEP DIVE
OVERVIEW

Bango targets profitability following launch of data marketplace

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
Mobile payments
OVERVIEW: BGO The Big Picture
The mobile payments platform allows app store customers to click and buy apps or in-app content

• Mobile payments platform operator
• Launched consumer data marketplace in December 2018
• 2018 cash expected to take firm to profitability

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.

The 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.

Inflexion points

• In a trading update in December, Bango said it expects end user spend to more than double in 2018 to more than £550mln from £271mln in 2017, continuing a four-year trend of more than 100% growth

• Since its pre-launch in November 2018, the Bango marketplace has started to generate initial revenues from new early adopter customers

• Cash at the end of the 2018 fiscal year is expected to be in excess of £3.5mln – more than enough to take the group to profitability

Blue Sky

Speaking to Proactive, Bango’s chief executive Ray Anderson says that the Bango Marketplace is expected to contribute materially to group revenues this year.

He adds that the platform has gathered a lot of consumer data which can now be used to help the company’s payment provider partners generate more business and therefore more transactions for Bango’s platform to process.

That same data will then be used by app developers through the Bango Marketplace to help them grow.

“Some [app developers] spend as much a third of their revenue on marketing,” Anderson says, adding that the marketplace is gaining momentum and that the company has already made its first sales.

By mid-2019, Anderson says the company will have “a much better idea of how rapid that growth is going to be”.

Revenues will then layer on top of the payment business, where the end user spend is continuing to rise.

“We’ve had great success with our payment platform, the end user spend has doubled every year for about four years and that’s expected to continue”.

With shares trading at around 81.5p as of 15 February, Bango carries a market cap of £53.8mln.

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