(Alliance News) - Bango PLC shares plunged on Thursday, after it said full-year earnings are expected to be below analyst expectations.
Shares in the Cambridge, UK-based mobile commerce company were down 37% to 115.01 pence each in London on Thursday afternoon.
Bango warned that its full-year adjusted earnings before interest, tax, depreciation and amortisation will be below analyst expectations at USD5 to USD6 million, compared to 2022's USD5.0 million.
It blamed lower-than-expected revenue recognition due to customer launch timing, USD2 million in unplanned cost of sales related to a legacy business of Docomo Digital, and a foreign exchange hit of USD1 million from intercompany loans inherited via the DDL acquisition.
More positively, Bango said 2023 revenue increased by 62% annually to USD46.1 million. It explained that Payments continued to trade "well" during the second half of 2023, in line with management expectations.
"Looking ahead, we expect to continue delivering strong revenue growth in 2024. Operating margins are expected to trend upwards in FY24 driven by the full decommissioning of the Docomo Digital platform," says Chief Executive Paul Larbey.
By Sophie Rose, Alliance News senior reporter
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Bango (BGO)