1H2020 Financial highlights
• Revenue grew by 50% to £4.77M, up from £3.19M in 1H19
• Adjusted** EBITDA for 1H20 was £1.09M, 23% of revenue and more than double the entire FY2019 EBITDA of £0.45M
• End User Spend (EUS) for 1H20 was £743M and remains on track to reach £2B in 2020, continuing the exponential growth in EUS over the last 6 years
• Adjusted Operating costs*** of £3.60M is in-line with forecast (1H19: £3.25M)
• The Bango Platform generated cash in 1H20. Cash on 30 June 2020 was £4.18M (31 December 2019: £2.69M)
• Total comprehensive income was £3.92M**** (1H19: loss £1.19M)
• Basic EPS 4.94p per share from continuing and discontinued operations (1H19: loss 1.82p)
* NHN acquired 60% of Audiens in April 2020. The associate is accounted for using the equity method for consolidation purposes.
** Adjusted EBITDA is operating profit before depreciation, amortization, share based payments and exceptional items from continuing operations
*** Operating costs before depreciation, amortization, share based payments and exceptional items from continuing operations.
**** Includes income from the platform and the gain from the creation of the JV (see note 7) with NHN
1H20 Operational highlights
• Joint Venture created with NHN Corp of South Korea to drive the Audiens CDP business forward. Bango retains 40% of the JV, allowing benefits to be realized from the growth anticipated following the NHN investment of cash and know-how.
• Signed 3-year platform deal with a leading global telecoms provider, worth at least £1.5M, with opportunities for further revenue growth.
• Expansion of carrier billing for Amazon Japan to SoftBank customers extending the service to over 100M people in Japan driving new EUS and revenue growth.
• Continuing growth across all existing routes for merchants including Google, Amazon and Microsoft.
• Bango Marketplace now offers payment audiences in 7 out of the top 8 countries ranked by app store revenue.
• Over 1,600 app developers are now registered and engaged with Bango Marketplace, compared to 207 at the end of 2019.
Innovation powering growth
· Expanded into the “bricks and mortar” retailer sector with the first launch of bundled merchant services by major US retail giants through the Bango Platform.
· Enabled the first “pure-play 5G” streaming games service with Hatch Inc. in the US.
Post-period
• Partnership with ODK Media Inc., a provider of subscription video services targeting Korean and Chinese diaspora, driving future EUS and revenues.
• Expansion of Bango Marketplace across Asia with new partnerships announced in China, Hong Kong, Taiwan, India and Indonesia. The power of Bango Audiences to acquire new paying users is increasingly recognized by app-focused agencies, publishers and app developers around the world.
Paul Larbey, Chief Executive Officer at Bango, commented: “Bango has delivered continued growth during a period of worldwide social and economic turbulence. Record revenue growth of 50%, adjusted EBITDA over double the entire FY19 amount, and an EBITDA margin of 23% during this period demonstrates the relevance and resilience of the Bango Platform.
“Most revenue growth results from contracts and routes won in previous years, so it is encouraging for future growth that the payments business launched new merchants and new routes during a period when online spending surged. With retailers now joining the Bango circle and new wins such as the major telco platform deal announced in May, Bango is ideally positioned to continue delivering exponential growth.
“The first half of the year has firmly established Bango Marketplace as an invaluable tool for App Developer marketing teams. Gaming giants such as Nexon and Nimble Neuron have joined the Bango ecosystem to increase the revenue generated through their marketing activities. The recent Bango Marketplace partnerships will allow Bango to grow the business even faster.“While our successes are global, the opportunity in Asia and the progress Bango is making in that region is particularly exciting and positions us well to meet our goal of being the technology behind every payment choice”.