31st Dec 2019 08:35
(Alliance News) - Bango PLC said Tuesday it expects its revenue to be below market expectations, due to contracts not completing in December as expected.
Bango shares were down 6.6% in London at 127.50 pence each on Tuesday.
In a trading update for 2019, the mobile commerce company said a Customer Data Platform license and Marketplace supply deal had not concluded in December as expected.
As a result, total revenue is expected to be below market expectations.
Bango said it expects revenue growth of 40% to "at least" GBP9.3 million from GBP6.6 million in 2018. In the first half of 2019, Bango recorded revenue of GBP4.3 million, up from GBP2.6 million a year before. Its interim pretax loss narrowed to GBP1.7 million from GBP2.2 million.
Meanwhile end user spend - meaning the total sales value processed through the Bango platform excluding taxes - is expected to be approximately GBP1.1 billion, "continuing the five-year trend of doubling" its growth every year, the company said. End-user spend in 2018 was GBP558.2 million.
"Management's positive view of continued exponential end-user spend growth is unchanged, due to growth of existing customers, a healthy pipeline of new routes, and new merchants joining the Bango ecosystem," the company said.
Chief Executive Officer Ray Anderson said: "While some deals expected late in 2019 did not close before the year-end, these will feature in our 2020 growth - alongside the momentum generated through market-leading developers adopting the platform for app marketing which further supports the continue, exponential growth of end user spend."
The company said its Bango 2020 Strategy day will be held on January 29 in London.
By Loreta Juodagalvyte; [email protected]
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