Business
Trading & Strategy Update
Trading & Strategy Update.
About this update from Bango Plc
[{"type":"text","content":"\n \nRNS Number : 5175M Bango PLC 21 January 2016 \n\n21 January 2016\nBANGO PLC\n(\"Bango\")\n \nTrading & Strategy Update\n \n \nBango (AIM: BGO), the mobile payments company, provides an update on trading for the twelve months ended 31 December 2015. \n \nEnd User Spend\nBango is focussed on increasing End User Spend (EUS) through the Bango Payment Platform, to take advantage of the rapid global growth in digital content and services. As stated on 14 January 2016, the annualized EUS exit run-rate for 2015 was £67m, representing an increase of over 100% year-on-year and in line with Bango's target. This growth was achieved despite adverse foreign exchange movements during 2015.\n \nPercentage Margin on End User Spend\nTowards the end of 2015, Bango experienced faster growth of digital goods sales in more developed markets, leading to a lower annual EUS margin of 1.8%. Percentage margin on EUS varies by operator route, country, app store sales volume and on type of product being sold by the app store. Bango's commercial arrangements with Mobile Network Operators and app stores have not changed and all agreements with different app stores and Mobile Network Operators will continue to contribute towards gross profit. The faster growth in developed markets is stronger than expected, and in part due to deployment of Bango Boost technology. In 2016, Bango expects to see greater contribution from EUS in its newer markets, where smartphone adoption is still increasing. \n \nNote: Percentage margin is the fee charged to Bango customers expressed as a percentage of EUS for processing given transactions.\n \nPlatform Fees\nPlatform Fees for FY2015 are now expected to be £0.5m, compared to £0.7m in FY2014. This is a direct outcome of Bango's decision going into 2015 to replace upfront platform fees with a recurring fee, removing commercial barriers to integrating to the Bango Payment Platform. Bango's key focus is on growing End User Spend, and this approach has enabled more commercial agreements with major app stores in large markets. \n \nLong-Term Strategy\nA tightly controlled fixed cost base, together with a market-leading position, gives Bango confidence in its ability to deliver long-term value for shareholders. This low fixed cost base allows Bango...