17th Sep 2013 09:32
LONDON (Alliance News) - Mobile payments firm Bango PLC said pretax losses widened for the first half, as it continues to transition to a smartphone and app-based business.
The company posted pretax losses of GBP1.8million for the period ended 30 June, compared with a GBP1.3 million loss a year earlier.
Revenue also declined for the period to GBP4.5 million, from GBP5.7 million in 2012, which the company said reflects the transition of the business from feature phone to smartphone and app store based activity, alongside the inclusion of agency fees in the end user activity.
Bango said cash stood at GBP7.2 million, up from GBP3.7 million in 2012.
Despite the fall in profit and revenue, Bango remained optimistic, citing a "remarkable" return to growth in end user spend in the first half, driven by new customers signing up during 2012.
The company said end user spend grew 74% during the period to GBP6.6 million, from GBP3.8 million, driven by smartphone activity which has continued into the second half.
Bango said it has invested in new people and systems to support growth and to meet the needs of its major customers going forward.
Bango management is therefore confident that Bango has the right cost base and strong balance sheet to scale in parallel with the expected volume growth ahead, it said.
However, the firm said it is too early to predict transaction volume growth rates but all factors were moving in the right direction, providing it with increasing confidence in its move to profitability, positive cashflow and increasing lead in the market.
Bango shares were trading at 167.00 pence Tuesday morning, down 17.00 pence or 9.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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