Stay-at-homes could trigger a Bango boom in COVID-19 crisis
Broker finnCap believes Bango, the Cambridge UK mobile payments technology specialist, could grow during the global coronavirus outbreak.
Reviewing an uplifting set of 2019 results for the business, finnCap said: “Bango is well positioned and during the pandemic EUS could see a substantial boost from stay-home spending in appstores and subscription services. We reiterate forecasts and our 225p TP.”
Bango end user spend for the year ended December 31 increased to £1.1 billion, continuing the five-year trend of doubling EUS every year (2018: £0.56bn).
Group revenue for the UK company increased 41 per cent to £9.31 million; payment and data monetisation revenue grew to £7.16m and £2.15m respectively (2018: £5.25m and £1.37m).
Cash at December 31 was £2.69m, an increase from the cash position at June 30 of £2.25m.
New merchants joined the Bango circle including YouTube TV, AETolls and Spotify and routes were launched for Amazon Prime, Pandora and Google Play in countries including Peru, Singapore, Chile, Myanmar, Morocco, South Africa and USA.
Management expects continued exponential EUS growth driven by success from existing customers, new opportunities from 5G and the new market opportunities that 2020 will bring.
Bango CEO Paul Larbey, said: “2019 was a great year for the continual evolution of the Bango Platform. In line with our strategy, once again we doubled End User Spend, but more importantly expanded our market opportunity with the development of our data monetisation business.
“Bango Marketplace is now established and enters 2020 with a strong pipeline. Bango's ambitious growth plans have delivered profit and, as I look at the opportunities ahead in 2020, my confidence in our ambitions is reinforced by Bango's unique combination of payments with data-driven intelligence for our customers and partners around the world.”
finnCap called it “an impressive year” for the business. It said: “Management’s ambitious growth plans have now delivered cash profit and Bango’s unique combination of payments with data-driven market intelligence open additional opportunities ahead in FY 2020.
“With profit in sight and £2.7m cash on the balance sheet Bango is well positioned and during the pandemic EUS could see a substantial boost from stay-home spending in appstores and subscription services.”
In a fresh boost for the business – opening up a lucrative new market – Bango has launched carrier billing payment services for Hatch, the monthly subscription based 5G games streaming platform.
Following an initial launch with a leading mobile operator in the US, customers can now subscribe to Hatch Premium Gaming by paying on their monthly phone bill.
Hatch is a 5G gaming platform that streams top tier gaming titles to your phone without the need for local installs. Choice and flexibility are massively increased for gamers who can chose from a vast library of premium games without being limited by device storage.
With the roll out of 5G, gamers are entering a new era of exceptional mobile game play on the go. The fast data exchange and increased bandwidth delivered by 5G enables sophisticated, multi-player games to be delivered at high quality and with real-time responses.
A new generation of 5G enabled devices, which support massive data consumption, is being launched to provide the perfect combination for gamer heaven.
This partnership will benefit from Bango Boost, which applies Bango data insights technology to identify users who are most likely to be interested in subscription-based, 5G gaming. These insights help Hatch to target offers to users who are interested in paid gaming services.