30th Jan 2007 07:14
Bango PLC30 January 2007 BANGO PLC ("Bango" or the "Company") TRADING UPDATE Bango is pleased to update the market on its progress during the currentsix-month trading period ending 31 March 2007. "The slowdown in revenue growth we saw in the summer of 2006 appears to bebehind us," said Ray Anderson, CEO. "Our sales pipeline is continuing to expandand signup rates are being maintained. Our focus on improving sales productivityby supporting our partners, sharing best practice between territories, andbroadening our product range to address the needs of the mobile internet marketis starting to show good progress." In recent months, as well as adding new content providers, the Company signednew contracts with several major mobile operators. These are expected to delivera significant increase in revenue and margin, although they may not befinancially significant before the year end. Total revenues for the year areexpected to be in excess of £10m. Margin percentages on end user revenues havebeen maintained, meaning net revenues continue to increase and are expected tobe approximately £2.75m for the year. At the end of the quarter ending December 31 2006, the Company had cashresources of over £2m. The increasing emphasis on leveraging the Company'stechnology and partnerships to reduce selling and marketing costs is starting tobear fruit. Management expect monthly Opex in March 2007 to be down by 27%compared with monthly levels in the quarter ending September 2006. Accordingly, the management expects ongoing monthly cash consumption to be below£100,000 on exiting the current financial year, based on modest revenue growthover the remaining two months of this period. Although end user and contentprovider revenues have not developed as quickly as expected, end user andcontent provider revenues for the third quarter grew 20% compared with theprevious quarter. The loss for the year is expected to be in the midrange ofbrokers expectations at about £2.8m. "I am pleased to report that after a pause earlier in the year, growth hasresumed," added Lindsay Bury, Chairman. "Bango is now on course towards ourgoal of operating break-even and neutral cash flow, with the move towardsprofitability being underpinned by a recurring revenue model, and potentiallyaccelerated by the activity of larger customers." For further information, please contact: Bango plc Tel. +44 (0)1223 472777Ray Anderson, CEO / Peter Saxton, CFO ICIS Limited Tel. +44 (0)20 7651 8688Tom Moriarty/ Caroline Evans-Jones About Bango Founded in 1999, Bango (AIM: BGO) created a revolutionary new technologyplatform that enables brands and content providers to rapidly exploit the fastexpanding reach of the mobile internet. Thousands of Bango enabled mobile websites have served tens of millions of users through hundreds of mobile operatorsworld-wide. Bango offers unique advantages to anybody wanting to get visitors totheir site, gain detailed information about them or collect payment from themwherever they are. Bango technology powers the global media giants, yet is soeasy and economic that small companies and individuals use it too. For furtherinformation, go to www.bango.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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