10th Mar 2015 09:37
LONDON (Alliance News) - Bango PLC, a mobile payments company listed on AIM, said its pretax loss widened in 2014 due to its switch to a subscription model, but reported a leap in end-user spend and set out its guidance for future developments.
In a statement, Bango said its pretax loss widened to GBP5.4 million in 2014 from GBP4.9 million in 2013, as it counted the cost of transitioning to asking clients to pay monthly fees instead of up front activation charges.
End-user spend, a closely watched measure of how many business transactions are made through Bango's platform for app stores, rose to GBP25.2 million from GBP15.6 million in 2013.
Citing end-user spending trend data from 2014, Bango said it expects end user spend from activations live in December 2014 to at least double to more than GBP65 million at an annualized run rate by December 2015.
Chief Executive Ray Anderson said that Bango has activated payment routes with a number of mobile network operators, including O2 and Etisalat, since the end of 2014.
"Bango has made good progress this year in integrating app stores and subsequently activating them with multiple mobile operators. Data gathered by Bango over the last two years across multiple countries and app stores, indicates that revenue in the market for digital content that is purchased via app stores is growing at a steady and sustainable pace," Anderson said.
The CEO said that Bango finished 2014 with annualised end user spend generated from "existing activations" of GBP32.9 million. That figure increased to GBP36.1 million in February, a figure highlighted by Anderson as a reason he is confident in meeting the guidance of at least doubling end user spend for 2015.
"In addition to this growth from existing activations, Bango has more than 30 activations already scheduled for launch in 2015 and a strong pipeline of over 100 further activation opportunities for the remainder of 2015. Taking account of the possible end-user spend from these potential activations gives management a high level of confidence in the groups' ability to exceed the 100% forecast growth in end user spend generating from current activations alone in the current financial year," Anderson said.
With a stable cost-base and rapidly increasing end-user spend, Bango continues to believe that it can become cash flow positive comfortably within the current capacity of the Bango payment platform," Anderson added.
Bango shares are up 4.9% at 81.79 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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