21st Jan 2016 10:06
LONDON (Alliance News) - Bango PLC on Thursday said it will prioritise end-user spend through its platform, which enables app stores to allow customers to pay for digital goods by charging the cost to their mobile phone bill, though margins have come under pressure.
The annualised end-user spend exit run-rate for 2015 was GBP67.0 million, Bango said, reiterating an update last week, more than double what was recorded the prior year.
End-user spend, which is Bango's favoured indicator of performance, is a measure of how much business is transacted through the company's platform for app stores. Towards the end of 2015, Bango said, faster growth of sales in more developed markets led to a lower end-user spend margin of 1.8%, meaning GBP1.2 million revenue to Bango from the GBP67.0 million.
"The faster growth in developed markets is stronger than expected, and in part due to deployment of Bango Boost technology. In 2016, Bango expects to see greater contribution from [end-user spend] in its newer markets, where smartphone adoption is still increasing," the company said.
Platform fees, which include revenue from services provided to mobile phone operators and digital merchants, are now expected to amount to roughly GBP500,000 in 2015, versus about GBP700,000 the prior year, largely because of a transition to recurring fees from upfront fees.
"Bango's key focus is on growing end user spend, and this approach has enabled more commercial agreements with major app stores in large markets," the company said.
The company will report earnings for 2015 on March 15.
Shares in Bango were down 12% at 85.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Bango