TIDMBGO
RNS Number : 2268T
Bango PLC
19 March 2019
19 March 2019
BANGO PLC
("Bango")
Final Results
Bango (AIM: BGO), the mobile commerce company, today announces
its Final Results for the year ended 31 December 2018.
2018 Financial performance
-- End User Spend (EUS) increased 106% to GBP558.2m (2017: GBP271.4m)
-- Revenue increased 60% to GBP6.62m (2017: GBP4.15m)
-- Total admin costs were GBP6.69m (2017: GBP5.72m)
-- Adjusted LBITDA* improved to -GBP0.87m (2017: -GBP1.57m), with positive EBITDA for 4Q18
-- Operating loss improved to -GBP3.5m (2017: -GBP3.9m)
-- Cash at 31 December 2018 was GBP3.81m (31 December 2017: GBP4.85m)
*Adjusted LBITDA is loss before interest, tax, depreciation,
amortization, share based payment charge and non-recurring
items.
2018 Operational performance
-- New customers and payment routes: Launches included Pandora,
Amazon Prime and Direct Carrier Billing (DCB) routes in Chile,
Brazil, India, UK, USA and Philippines
-- New product launch: Launched new data product, Bango
Marketplace to open up the Bango Platform directly to the thousands
of app developers for the first time
-- Acquisition of Audiens CDP: Technology successfully
integrated into Bango Platform, enabled accelerated launch of Bango
Marketplace
-- Capacity increase: Transaction processing capacity increased to in excess of GBP10bn a year
Outlook
-- Payment platform growth: End User Spend through Bango
Platform expected to grow in excess of 100% in 2019 with growth
from established and new routes
-- Expanded opportunity: New revenue stream from app developers
buying from Bango Marketplace. Payment providers will benefit by
upgrading to Bango
-- Audiens CDP growth: Initial success of Audiens CDP in Italy
expanding to other countries and continuing growth established in
2018
-- Thriving ecosystem: Large and strategically valuable
opportunity to enable prosperity by linking $50bn/yr app marketing
industry with global payment infrastructure
-- Investment in future: Increased investment in the data
opportunity, alongside growth and profitability of the payment
business, is expected to drive revenue and profit from 2020
onwards. 2019 is projected to be profitable, but at a lower level
than previously forecast
-- Bango expects to generate sufficient cash to cover both the
operational costs of the business and the continued investment in
product development in the coming year
Ray Anderson, Chief Executive Officer of Bango, commented:
"2018 was an important and successful year for Bango. Strong
growth in revenues, growth in the core payments business, and
expansion of the business to providing data insights for app
developer marketing, all provide a powerful platform for a
profitable 2019 and prosperous long-term future. The increasing
value of Bango in mobile commerce, demonstrated by triple-digit
growth in End User Spend (EUS), was accomplished on a stable
cost-base with increased transaction processing capacity. This
demonstrates the power of the Bango Platform .
App developers, app stores, merchants and payment providers are
crossing the threshold into the Bango ecosystem to collaborate,
grow and thrive. More mobile commerce throughout the Bango Platform
will deliver value from both the established payment platform and
also from the unique ability to securely and safely monetize
anonymized payment data. This is the opportunity that Bango will
focus on during 2019."
Contact Details:
Bango PLC FTI Consulting Cenkos Securities
PLC
Tel. +44 333 077 0247 Tel. +44 203 727 1000 Tel. +44 131 220
6939
www.bango.com Rob Mindell Beth McKiernan
Ray Anderson, CEO Matt Dixon Neil McDonald
Carolyn Rand, CFO Peter Lynch
Anil Malhotra, CMO
About Bango
App developers, stores and payment providers cross the threshold
into the Bango ecosystem to converge, grow and thrive. By bringing
businesses together and powering e-commerce with unique data-driven
insights, Bango delivers new business opportunities and new
dimensions of growth for customers around the world. Being inside
the Bango circle means global merchants including Amazon (NASDAQ:
AMZN), Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT) can work
together with payment partners from Africa to the Americas,
accelerating the performance of everyone on the inside.
Bango. Think inside the circle. For more information, visit
www.bango.com.
Chair's statement
2018 was a real step forward for the Bango virtuous circle
strategy - which uses the data gained from processing payment
transactions to drive revenue growth and make app developer
marketing more productive.
The payment business moved into profitability in 4Q18, and
transaction volumes continued to accelerate - providing a solid
foundation for expansion of the data monetization part of the
strategy.
The acquisition of Audiens Srl., supported by shareholders,
along with intense product development effort allowed Bango to
bring forward the roll out of its product for app developers by
about 12 months - launching as Bango Marketplace at the end of
2018.
With new ways for payment partners to monetize data, the Bango
Platform becomes more compelling to payment providers, which is why
management is confident of migrating an increasing number of mobile
operators to the Bango Platform and bringing their associated
payment transactions - expressed as EUS - into the data pool.
Consumer spending on apps and digital content continues to grow
rapidly. Smartphone users spent over $100B on apps in 2018, driven
by app developer marketing spend of around $50B. For Bango, with
its unique and innovative new product to improve marketing
efficiency, there is a large and strategically valuable opportunity
to provide the place where developers and payment providers thrive
together.
The prospects are very exciting. The Board supports management's
investment into expanding this new revenue stream for Bango in 2019
and beyond, alongside continuous growth from the payments
business.
The Bango Board was strengthened at the end of 2018 by the
addition of non-executive director Nancy Cruickshank and CFO
Carolyn Rand. Martin Rigby, having contributed substantially to the
growth of Bango as Non-Executive Director over more than 9 years
will retire at the May 2019 AGM in line with good corporate
governance. I thank Martin for his valuable service.
David Sear
Chair
CEO's statement
Payment platform growth
In 2018, and for the fourth consecutive year, EUS more than
doubled through growth in existing activations, and additional EUS
from new activations in the year. Bango delivered growth for all
major partners connected to Bango, including Google Play, Amazon,
Microsoft and other streaming video and audio merchants.
Transaction volume growth was generated from existing customers,
new customers, new content types from existing customers and new
payment routes. The strong and profitable payment business is
providing the foundation for Bango as it develops compelling and
valuable new market opportunities around the monetization of this
growing data asset.
During 2018 Bango continued to invest in its core platform
technology. Parts of the platform were moved to the cloud to enable
smooth processing during very high spikes of traffic without extra
cost in Bango datacenters. New technology to streamline the
transfer of routes from direct connections or alternative suppliers
over to the Bango Platform was developed, and new tools developed
that allow customers to self-manage their use of the Bango Platform
to reduce dependencies on the Bango operations teams.
To accelerate and underpin growth, Bango continues sales and
marketing activity to add new customers, open routes throughout new
mobile operators and to expand the use of the Bango Platform. The
unique insights into consumer behavior gathered by the platform
enable customers to grow payment volumes and improve user
experience.
The capacity of the platform is now regularly tested to rates in
excess of GBP10B/yr of EUS, and to hundreds of transactions per
second. There is always substantial capacity headroom in the
platform to handle sudden surges in volume and ensure that Bango
can support the growth ambitions of its partners. Bango continues
to invest in new developments by the R&D team to ensure that
existing direct Google Play routes can be upgraded faster to the
Bango Platform to bring the billions of dollars of EUS that are in
the migration pipeline across many territories throughout the Bango
Platform in coming years.
Boosting mobile commerce with payment data
The Bango strategy is to gather anonymized data from payment
activity and payment partners and to use this data to improve the
success of merchants, which in turn drives more payments and
success for partners.
Early in 2018 Bango acquired Audiens, gaining valuable
technology and its important business relationships with trusted
marketing partners Google, Facebook, Oath and other global
marketing businesses. Along with product development at Bango, this
enabled Bango to open the unique capabilities of the Bango Platform
to an entirely new range of customers. App developers can now focus
their campaigns towards audiences that have specific payment
histories or characteristics. In addition to using Bango to process
their payments, Bango makes marketing more efficient and effective
for app developers.
The additional market opportunity for Bango is large. By
leveraging a powerful technology platform and the expanding
relationships with Google and Facebook to reach large volumes of
customers in an efficient way, the base is established for a
substantial new revenue stream.
In December 2018 Bango launched Bango Marketplace - an online
portal at bango.com which makes the value of Bango generated
audiences more easily available to app developers. The launch
followed a very successful Bango organized pre-launch event in
Jakarta, Indonesia at which mobile operators confirmed their desire
to collaborate with app developers using the Bango Platform. A
similar event was organized for the Game Developer Conference in
March 2018 in San Francisco, California.
The business model for the data business is to create country
specific audiences comprised of different types of pay capable or
pay proven users. These audiences may be used by app developers
during their marketing campaigns for specific time periods - for
example 14 days. The audiences may only be used through trusted,
opted-in, marketing platforms such as Facebook or YouTube, so there
is no access to the data itself by the app developers. The benefit
of this model is that the data provider - typically a mobile
operator - shares in the revenue generated by Bango, under a
supplier agreement which is available to all mobile operators
integrated with the Bango Platform. Although at an early stage in
its evolution, Bango expects to deliver 20-50% of Bango Marketplace
audience usage revenues to data suppliers - making the Bango
Platform even more attractive to payment providers.
Bango increased sales and marketing activity in Japan, Korea,
China, USA and Europe to ensure rapid adoption of Bango Marketplace
by leading app developers. As the leaders thrive by crossing the
threshold into the Bango circle, smaller app developers are
expected to follow using the self-serve tools in the Bango
Marketplace. Visit bango.com/marketplace
Audiens Customer Data Platform (CDP)
Bango acquired Audiens for its innovative core technology and
its established integrations with the major marketing platforms.
With Bango as a demanding user of the technology, and by leveraging
other Bango technology and assets, the Audiens Customer Data
Platform (CDP), which is sold on a Software as a service (SaaS)
model, has become stronger and even more secure under Bango
stewardship.
Building on its strong start in Italy, and continuing
partnership with DigiTouch, Bango introduced the Audiens CDP to a
global market. With new customer wins for Audiens CDP and a good
pipeline of opportunities alongside the core Bango app developer
focus, the Audiens team is ahead of plan, and looking forward to a
successful 2019.
The Audiens CDP team maintains separate identity at audiens.com
and Bango has relocated the team to its own new office in Milan,
Italy to ensure the CDP opportunity is fully exploited.
Strengthening the Bango team
The Bango team has been strengthened in 2018, to ensure momentum
is maintained and growth in existing and new business can be driven
effectively.
A new CFO with significant global, public company, managerial
and high growth experience was appointed at the end of 2018 in
preparation for high growth from both existing and new business. A
product marketing leader with experience at Amazon was brought in
to drive Bango Marketplace and a senior sales leader from Visa,
Mastercard and Docomo joined to head up business development. A
very experienced new COO - who started in March 2019 - joined Bango
from a CEO role in successful Nokia subsidiary.
The Board was also strengthened by bringing in a Non-Executive
Director from the digital media, data, consumer space to ensure
Bango can see its opportunities from a data perspective.
Brand repositioning
The Bango Platform has established a strong reputation for using
alternative payment methods such as Direct Carrier Billing (DCB) to
reach more users and for generating more revenue than other
solutions. With the arrival of Bango Marketplace, mobile operators
can now access the huge potential beyond payment processing and
developers. App developers have had their eyes opened to a radical
new way of improving their marketing using audiences defined by
payment characteristics.
To reflect this new dimension of thinking and the way businesses
can easily cross into the Bango ecosystem and thrive, Bango
repositioned its brand and developed a whole new way to express the
benefits and values of Bango. The new brand was previewed to
investors at the annual Strategy Day in January 2019, and
officially launched at Mobile World Congress a few weeks later.
The new branding has provoked discussion with people who thought
they already knew Bango and now see how Bango can do much more for
them.
Outlook
The payment business is thriving, growing and moved into profit
at the end of the year. Bango is entering a phase where strong
execution for existing partners will deliver continued growth.
Costs associated with this business are stable and huge capacity is
already installed to accommodate continued exponential growth.
In parallel, the launch of Bango Marketplace and the big
benefits it brings to existing and new customers sets the scene for
a stronger competitive position in the payment business, and
opportunity to gain access to a share of the $50Bn spent every year
by app developers on app marketing.
In 2019 Bango has two main areas of focus:
-- Growth of EUS through the reliable and secure Bango Platform,
expecting to achieve EUS growth in excess of 100% year-on-year.
Bango expects to migrate over more routes and enable new global
brands and commerce types to thrive on the Bango Platform. There is
a strong pipeline of operators that can bring billions of dollars
of EUS when they upgrade to Bango and gain new revenues for
themselves.
-- Gaining significant new revenue from the $50Bn app developers
spend on app marketing by offering access to valuable audiences
through Bango Marketplace. This additional revenue stream is
expected to drive further growth in the payments business as
partners become increasingly aware that by processing payments
through Bango, they can also drive revenue from the data
collected.
During 2018 additional operational expenditure was incurred to
add the Audiens team in Milan and to establish a small data
monetization linked sales and marketing team. Further targeted
expenditure to maximize the data opportunity is being incurred in
2019.
With the growing high margin revenues and stable expenses of its
payment platform, Bango expects to generate sufficient cash to
cover both the operational costs of the business and this continued
investment in product development in the coming year.
The team at Bango is looking forward to further growth and
providing a unique ecosystem in which businesses can thrive.
Ray Anderson
Chief Executive Officer
CFO Statement
Bango business model
Bango now provides financial reporting of two synergistic lines
of business. The payments business processes payment transactions
through the Bango Platform for the world's leading online digital
and physical merchants. The data business facilitates the
monetization of valuable data collected by payment providers and
mobile operators to enable more efficient marketing by app
developers.
End User Spend (EUS)
EUS is the total sales processed through the Bango Platform
excluding taxes. EUS shows the growth of mobile commerce through
the Bango Platform. It is the most significant Key Performance
Indicator that management uses to measure the development of the
business and the continued success of Bango customers and partners.
More EUS means more transactions and more payment data - a key
factor in driving competitive edge for Bango.
In 2018 EUS increased 106% to GBP558.2m from GBP271.4m in 2017,
due to growth from existing activations and additional EUS from new
activations in the year. Bango continues to drive increasing
transaction volumes at low fixed cost to grow Bango revenue and
profit in 2018 and beyond.
Revenue
Bango earns payment revenue from every transaction processed
through the Bango Platform. Revenue is either a fee based on the
value of the transaction or a fixed fee per transaction. Each
additional sale by a merchant using the Bango Platform adds to EUS
and increased revenue.
Bango earns data revenue either as a percentage of the fee that
a data owner earns by selling their anonymized data audiences
through Bango to merchants or other advertisers, or as a monthly
fee for using the Bango Audiens CDP to create data audiences they
exploit themselves.
Bango earns other fees, such as integration fees, which are
recognized on completion of the contracted milestones. This revenue
relates to payments by merchants or mobile operators for upgrades
to the Bango Platform.
From January 2018, where payment is collected for a service
lasting 12 months, for example a streaming service, revenues and
EUS are recognized evenly over the life of the subscription in line
with accounting standard IFRS 15. Previously it was recognized at
the point the payment transaction succeeded. With the launch of
streaming services through the Bango Platform, recurring revenues
on a subscription model are increasing rapidly.
Other than adjusting for IFRS 15, revenue generated from EUS is
accounted for using the same method as in 2017 and increased 26% to
GBP5.25m from GBP4.15m in 2017. The growth in EUS has led to an
increase in EUS revenue. The Bango business model is for the EUS
revenue to grow to cover all expenses and R&D investment in the
platform.
Revenue of GBP1.37m was generated from data activity in 2018.
Revenue was generated from monthly fees and by third parties
monetizing their data by using Bango technology to segment their
data and sell it through Bango enabled channels. The revenue
recognized is the value of the data sold through the channels.
Costs of sales in the segmental reporting in 2018 of GBP0.8m
relates to any fee charged by the data owners or by the marketing
channel for use of the data. There was no cost of sales related to
the Bango Platform Payment activity in 2018.
Acquisition of Audiens S.R.L.
On 23 January 2018, Bango purchased 98.45% of Audiens S.R.L.
from Digitouch S.p.A, for an initial consideration of EUR1.48m in
cash and EUR0.63m paid in cash during 2018. Bango also issued
521,803 new Bango shares to the vendors of Audiens and 738,399
warrants over new Bango shares, exercisable at a price of GBP1.80
each, which will lapse after 10 years. Further deferred
consideration, based on the growth of the business in the two years
post acquisition is potentially payable to the CEO of Audiens,
based upon an option agreement for the remaining 1.55% of Audiens.
Bango currently expect this payment to be up to EUR0.95m.
There is already significant monetizable data in the Bango
Platform due to historic EUS to support growth of data revenues. As
Bango EUS grows in 2019, the volume of data in the Bango Platform
will increase and therefore, the revenue from the Bango data
opportunity is expected to increase further.
Costs
Bango group administrative costs of GBP6.7m, (FY 2017, GBP5.7m)
was in line with forecasts and includes the Data Business. The
whole Bango group was EBITDA positive in 4Q18. The Bango Platform
can process EUS at many times current levels with no additional
operational cost.
The Bango data business is not yet EBITDA positive, but it is
expected to become EBITDA positive in the next 12 months based on
existing sales and on the roadmap of future sales. Bango has
invested in legal and security reviews to support the growth of
this business in relation to national regulations such as GDPR and
personal information security. Bango R&D has securely
integrated the Audiens technology into the Bango Platform and
provided technology stewardship to ensure the Audiens CDP meets the
high standards demanded by the leaders in the industry.
The share-based payment charge for 2018 was GBP1.03m (2017:
GBP0.68m) calculated using the Black-Scholes model. It relates to
the Bango share option program that enables all Bango employees to
share in the growing value of Bango. It is a vital recruitment and
retention tool in a highly competitive employment market.
Amortization of intangible assets in the year was GBP1.35m
(2017: amortization and impairment GBP1.40m) as R&D projects
capitalized in prior years were deployed. Depreciation for the year
totaled GBP0.27m (2017: GBP0.19m) reflecting the fixed asset
additions in the year.
Statement of financial position
Net assets at 31 December 2018 were GBP16.0m (31 December 2017:
GBP10.7m).
Cash balances at 31 December 2018 decreased by GBP1.0m to
GBP3.8m (at 31 December 2017: GBP4.8m), as a result of investment
in the new business and products. With a highly scalable operating
platform and growing EUS leading to increased revenue. As part of
the acquisition of Audiens, Bango raised GBP5m (GBP4.6m net of
fees) both to acquire and integrate Audiens and to invest in the
development of Bango data technology and business.
Intangible assets GBP11.9m (2017: GBP6.1m) include acquired
goodwill as well as internally developed capitalized R&D.
Intangible assets relating to capitalized internal R&D
increased to GBP5.8m, following additional investment in the Bango
Platform and Bango Marketplace (31 December 2017: GBP4.0m).
Internally generated R&D is amortized over 5 years with
projects assessed in relation to their individual cash generation
ability.
Total borrowings at 31 December 2018 were GBP0.3m (31 December
2017: GBP0.3m) and consist of finance lease liabilities used to
purchase computer equipment and software.
Going concern
As Bango continues to grow its EUS and revenue in 2019 in line
with prior year trends, cash consumption will reduce on a stable
cost basis. With cash at the year-end of GBP3.8m, the Board
believes there is sufficient cash in place to see the business
through to cash breakeven and profitability. Based on the growth of
the business and controlled cash, and with further growth in
revenue expected in FY2019 and beyond, Bango will have sufficient
cash resources to support both planned investments to grow sales,
and to develop new products to ensure Bango has a strong pipeline
of upgrades and can process hundreds of millions more EUS in the
near future.
Carolyn Rand
CFO
Audited results for the year ending 31 December 2018
Consolidated statement of comprehensive income
31 Dec 2018 31 Dec 2017
Note GBP GBP
Alternative performance measure (Non-IFRS)
End User Spend 3558,172,507 271,356,080
-----------
Revenue 3 6,619,728 4,151,939
Cost of sales 3 (796,180) (2,439)
----------- -------------
Gross profit 5,823,548 4,149,500
Other administrative expenses 3 (6,690,482) (5,717,516)
Non-recurring items 3 - (59,463)
Share based payments 3 (1,034,824) (679,023)
Depreciation 3 (270,070) (188,496)
Amortization and impairment 3 (1,345,187) (1,396,541)
----------- -------------
Total administrative expenses (9,340,563) (8,041,039)
----------- -------------
Operating loss (3,517,015) (3,891,539)
Interest payable (67,696) (51,458)
Investment income 14,805 20,858
----------- -------------
Loss before taxation (3,569,906) (3,922,139)
Income tax 706,367 486,986
----------- -------------
Loss and total comprehensive loss for the
financial year (2,863,539) (3,435,153)
----------- -------------
Other comprehensive income
Foreign exchange on consolidation 83,339 (56,869)
Attributable to equity holders of the parent (2,780,200) (3,492,022)
=========== =============
Loss per share attributable to the equity holders of the
parent
Basic loss per share (4.11)p (5.22)p
Diluted loss per share (4.11)p (5.22)p
All of the activities of the Group are classed as
continuing.
Consolidated statement of financial position
31 Dec
2018 31 Dec 2017
GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 567,620 556,863
Intangible assets 11,927,893 6,130,190
------------ ------------
12,495,513 6,687,053
Current assets
Trade and other receivables 2,815,533 2,013,088
Research and Development tax credits 634,889 421,215
Cash and cash equivalents 3,814,927 4,847,203
------------ ------------
7,265,349 7,281,506
------------ ------------
Total assets 19,760,862 13,968,559
============ ============
EQUITY
Capital and reserves attributable to equity holders
of the parent company
Share capital 14,053,582 13,284,561
Share premium account 35,796,976 31,248,453
Merger reserve 2,175,470 1,236,225
Other reserve 3,880,680 2,350,701
Foreign exchange revaluation reserve 161,657 78,318
Accumulated losses (40,099,865) (37,474,820)
------------ ------------
Total equity 15,968,500 10,723,438
============ ============
LIABILITIES
Current liabilities
Trade and other payables 3,408,919 2,967,538
Finance lease liabilities 121,968 99,889
------------ ------------
3,530,887 3,067,427
Non-current liabilities
Finance lease liabilities 152,081 177,694
Deferred tax liability 109,394 -
------------ ------------
261,475 117,694
Total liabilities 3,792,362 3,245,121
Total equity and liabilities 19,760,862 13,968,559
============ ============
Consolidated cash flow statement
31 Dec 2018 31 Dec 2017
GBP GBP
Net cash used by operating activities (1,591,039) (253,675)
Cash flows used by investing activities
Purchases of property, plant and equipment (181,977) (450,794)
Addition to intangible assets (2,573,306) (1,509,670)
Purchase of subsidiary (1,238,706) -
Payment of deferred consideration (547,307)
Interest received 14,805 20,858
----------- -----------
Net cash used by investing activities (4,526,491) (1,939,606)
Cash flows generated from financing activities
Proceeds from issuance of ordinary shares 5,545,974 1,180,549
Costs associated with issuance of ordinary shares (332,793) -
Interest payments of finance lease obligations (67,696) (51,458)
Capital repayments on finance lease obligations (102,384) (89,571)
Net cash generated from financing activities 5,043,101 1,039,520
Net increase in cash and cash equivalents (1,074,429) (882,161)
Cash and cash equivalents at beginning of
year 4,847,203 5,696,517
Exchange differences on cash and cash equivalents 42,153 32,847
----------- -----------
4,889,356 5,729,364
----------- -----------
Cash and cash equivalents at end of year 3,814,927 4,847,203
=========== ===========
Consolidated statement of changes in equity
Share Share Merger Other FEX Retained Total
capital premium reserve reserve reserve earnings
Group account
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January 2017 13,029,124 30,323,341 1,236,225 2,211,136 135,187 (34,579,125) 12,355,888
Share based payments - - - 679,023 - - 679,023
Share based payment
transfer for
exercises - - - (539,458) - 539,458 -
Exercise of share
options 255,437 925,112 - - - - 1,180,549
Transactions
with owners 255,437 925,112 - 139,565 - 539,458 1,859,572
---------- ---------- --------- --------- -------- ------------ -----------
Loss for the
year - - - - - (3,435,153) (3,435,153)
Other comprehensive
income
---------- ---------- --------- --------- -------- ------------ -----------
Foreign exchange
on consolidation - - - - (56,869) - (56,869)
---------- ---------- --------- --------- -------- ------------ -----------
Total comprehensive
income for the
year - - - - (56,869) (3,435,153) (3,492,022)
---------- ---------- --------- --------- -------- ------------ -----------
Balance at 31
December 2017 13,284,561 31,248,453 1,236,225 2,350,701 78,318 (37,474,820) 10,723,438
---------- ---------- --------- --------- -------- ------------ -----------
Balance at 1
January 2018 13,284,561 31,248,453 1,236,225 2,350,701 78,318 (37,474,820) 10,723,438
Share based payments - - - 1,034,824 - - 1,034,824
Share based payment
transfer for
exercises - - - (238,494) 238,494 -
Issue of warrants - - - 733,649 - - 733,649
Exercise of share
options 106,882 419,092 - - - - 525,974
Issue of shares 662,139 4,462,224 939,245 - - - 6,063,608
Expense of share
issue - (332,793) - - - - (332,793)
---------- ---------- --------- --------- ------- ------------ -----------
Transactions
with owners 769,021 4,548,523 939,245 1,529,979 - 238,494 8,025,262
---------- ---------- --------- --------- ------- ------------ -----------
Loss for the
year - - - - - (2,863,539) (2,863,539)
---------- ---------- --------- --------- ------- ------------ -----------
Other comprehensive
income
---------- ---------- --------- --------- ------- ------------ -----------
Foreign exchange
on consolidation - - - - 83,339 - 83,339
---------- ---------- --------- --------- ------- ------------ -----------
Total comprehensive
income for the
year - - - - 83,339 (2,863,539) (2,780,200)
---------- ---------- --------- --------- ------- ------------ -----------
Balance at 31
December 2018 14,053,582 35,796,976 2,175,470 3,880,680 161,657 (40,099,865) 15,968,500
---------- ---------- --------- --------- ------- ------------ -----------
Notes to the financial statements
1 General information
Bango PLC ("Bango") was incorporated on 8 March 2005 in the
United Kingdom and is domiciled there. Bango shares are listed on
the Alternative Investment Market of the London Stock Exchange
("AIM").
The preliminary statements are for the year ended 31 December
2018. Comparatives are for the year ended 31 December 2017.
2 Basis of preparation
The Group financial statements, which consolidate those of Bango
PLC and all of its subsidiaries, have been prepared under the
historical cost convention and under the basis of going
concern.
Bango has prepared its Report and accounts for the year ended 31
December 2018, in accordance with International Financial Reporting
Standards ("IFRS") as adopted in the European Union and as applied
in accordance with the provisions of the Companies Act 2006. IFRS
requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of
applying the Group's accounting policies.
These preliminary statements are presented in pounds sterling
(GBP) because that is the presentation currency of Bango.
The Board of Bango PLC approved the release of this preliminary
announcement on 18 March 2019.
The preliminary financial information does not constitute
statutory financial statements for the year ended 31 December 2018
within the meaning of section 435 of the Companies Act 2006, but is
extracted from those financial statements. Statutory accounts for
Bango PLC for the year ended 31 December 2017 have been delivered
to the Registrar of Companies. Statutory accounts for the year
ended 31 December 2018 will be delivered to the Registrar of
Companies following Bango's Annual General Meeting.
The auditors have reported on those accounts; their reports were
(i) unqualified, (ii) did not include references to any matters to
which the auditors drew attention by way of emphasis without
qualifying their reports and (iii) did not contain statements under
section 498(2) or (3) of the Companies Act 2006.
3 Segment reporting
(a) End User Spend
As a non IFRS alternative performance measure, Bango has
identified EUS as its key performance indicator on which all
management decisions surrounding investment in the platform and
development of intangible assets are based. Key business decisions
are based on the total value and volume of transactions that Bango
has processed in each month through its payment platform.
Therefore, to give additional information to key stakeholders of
our accounts and to assist users of our financial statements, we
include this additional reporting.
31 Dec 2018 31 Dec 2017
GBP GBP
End User Spend 558,172,507 271,356,080
============ ============
(b) Revenue and gross profit
Bango, based on the information reviewed by the chief operating
decision maker, identifies two operating segments. Management
reporting is based principally on the type of customer and
strategic decisions are made on the basis of the gross profit
generated from each segment. The segments are not separately
managed and therefore Bango's headquarters and its research and
development activity are considered group operations and are not
allocated to any operating segment. Segment information can be
analyzed as follows for the reporting periods under review.
End User Spend activity revenue is the Bango revenue share for
processing transactions through the Bango Platform. Bango earns
revenue calculated either as a share of the net of tax figure or as
a fixed value per transaction. Assets for this segment are amounts
due from merchants or payment providers. Liabilities for this
segment are mainly fees payable to payment providers for provision
of services and fees payable to merchants for provision of content
sold by Bango to end users.
Bango data activity relates to revenues from the sale of the use
of data platform and audiences used for customer marketing
activity. Revenue is either a monthly software as a service fee or
a revenue share from selling the data to third parties. Assets from
this segment are fees from data owners and liabilities relate to
sums owed to data owners. Liabilities also relating to the deferred
consideration for Audiens are shown in this segment.
12 months to 31 December 2018
End user Data activity Group
activity Total
GBP GBP GBP GBP
Segment revenue 5,248,299 1,371,429 - 6,619,728
Cost of sales - payment
providers - (796,180) - (796,180)
Segment gross profit 5,248,299 575,249 - 5,823,548
--------- ------------- ----------- -----------
Administrative expenses - - (6,690,482) (6,690,482)
--------- ------------- ----------- -----------
Share based payments charge - - (1,034,824) (1,034,824)
Depreciation - - (270,070) (270,070)
Amortization - - (1,345,187) (1,345,187)
Interest payable - - (67,696) (67,696)
Interest income - - 14,805 14,805
Segment net profit/ (loss) 5,130,454 693,094 (9,393,454) (3,569,906)
========= ============= =========== ===========
Segment assets 1,518,168 559,864 17,682,829 19,760,862
Segment liabilities (83,130) (438,248) (3,270,984) (3,792,362)
Net assets 1,435,038 121,616 14,411,845 15,968,500
========= ============= =========== ===========
12 months to 31 December 2017
End user Data activity Group
activity Total
GBP GBP GBP GBP
Segment revenue 4,151,939 - - 4,151,939
Cost of sales - payment
providers (2,439) - - (2,439)
Segment gross profit 4,078,548 - - 4,149,500
----------- ------------- ----------- -----------
Administrative expenses - - (5,717,516) (5,717,516)
Exceptional items - - (59,463) (59,463)
Share based payments charge - - (679,023) (679,023)
Depreciation - - (188,496) (188,496)
Amortization and impairment - - (1,396,541) (1,396,541)
Interest payable - - (51,458) (51,458)
Interest income - - 20,858 20,858
Segment net profit/ (loss) 4,078,548 - (8,071,639) (3,922,139)
=========== ============= =========== ===========
Segment assets 1,451,542 - 12,517,017 13,968,559
Segment liabilities (2,479,707) - (765,414) (3,245,121)
Net assets (1,028,165) - 11,751,603 10,723,438
=========== ============= =========== ===========
Bango's non-current assets are divided into the following
geographical areas.
31 Dec 2018 31 Dec 2017
GBP GBP
United Kingdom (country of domicile) 10,816,562 6,687,053
EU 1,678,951 -
12,495,513 6,687,053
============ ============
Non-current assets are allocated based on their physical
location.
(c) Geographical analysis
Bango's revenue from external customers is divided into the
following geographical areas.
31 Dec 2018 31 Dec 2017
GBP GBP
United Kingdom (country of domicile) 29,541 12,264
EU 1,338,890 58,719
USA and Canada 1,559,025 2,050,162
Rest of World 3,692,272 2,030,794
------------ ------------
6,619,728 4,151,939
============ ============
Segment revenue is based on the location of the partners. All
turnover is spread over many territories, of which GBP0.6m is
driven mainly by the activity of two partners in EU, GBP2.7m comes
from three partners operating in Rest of World and GBP0.9m comes
from two partners in USA and Canada. (2017: GBP1.8m USA and Canada,
GBP0.6m Rest of World and GBP0.4m Rest of World).
All other notes to the accounts are included in the "Bango
Annual Report 2018" which is available to download from
bangoinvestor.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR CKFDQBBKBFND
(END) Dow Jones Newswires
March 19, 2019 03:01 ET (07:01 GMT)
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