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26 Oct 2010 07:00
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26 October 2010
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BANGO PLC
("Bango")
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Update on Trading
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Bango plc (AIM: BGO) the mobile web payments and analytics company, today provides an update on trading.
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RIM, Apple and Google have been driving the recent adoption of smartphones and smartphone technology. The success of Apple's application store and the increase in mobile advertising spend suggest that mobile commerce is now becoming mainstream. This is a market in which Bango is already active and will increasingly focus on in the future as it is apparent that the application stores are becoming an important route to market for mobile content vendors.
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During the first half of the year, Bango has seen significant growth in demand from these application stores for its billing and analytics technology, including from industry leaders such as RIM (Blackberry), Gameloft, EA, Fox, Yahoo and Turner.
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The Board expects that the market developments outlined above will improve Bango's growth prospects and profitability as Bango gains increased revenues and higher percentage margins from larger customers in the medium term. This should lead to more visible and higher quality revenues. In particular, Bango sees considerable potential in its relationship with leading smartphone maker RIM. Bango has also launched similar billing and analytics technology for Android and Apple devices and key customers are now deploying this Bango technology in their new projects.
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Whilst financial results in the first half were in line with the Board's expectations, agreements between Bango and existing customers for the migration of business from premium messaging to the Bango billing platform are taking longer than expected to finalize although they are still expected to contribute to profitability in this financial year and beyond. This delay in migration is expected to result in profits for the year ending 31 March 2011 being below current market expectations. As noted, however, Bango is benefitting from the significant growth in application store activity and the Board anticipates that these benefits will have a material impact on the profitability of the Company in the year ending 31 March 2012.
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Ray Anderson, CEO, commented,"Having gained significant traction for Bango payment and analytics in the early stage market, it is now very exciting that major industry players are becoming aware of what Bango can do for them and are adopting our technology. Bango's technology and relationships are increasingly being recognized as adding competitive advantage in this fast moving industry. Whilst there is some expected decrease in short-term profitability, the long term prospects are more exciting than ever and we are confident that our strategy will deliver increased value for shareholders."
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Contact Details:
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Bango plc | Threadneedle Communications | Cenkos Securities plc |
Tel. +44 1223 472777 www.bango.com | Tel. +44 (0) 207 653 9850 | Tel. +44 (0)207 397 8900 Β |
Ray Anderson, CEO | Tom Moriarty | Ken Fleming |
Peter Saxton, CFO | Caroline Evans-Jones | Beth McKiernan |
Fiona Conroy |
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About Bango
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Bango (AIM: BGO) provides technology that enables commerce on the mobile web.
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Bango enables businesses of all sizes to collect payment for music, games, applications, videos and services sold to internet connected mobile phone users. Bango is able to charge payments to mobile phone bills or use other billing methods such as credit card based on intelligence about the consumer. Bango also provides an analytics service that provides accurate information about visitors and the effectiveness of marketing activities for mobile web sites.
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Visit www.bango.com.
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