Bango (AIM: BGO), the global platform for data-driven commerce,
today announces its interim results for the six months ended 30
June 2023.
Key highlights:
- Revenue up 88% to $20.3M (1H22: $10.8M), in line with
management expectations
- Strong Digital Vending MachineTM (DVM) traction in the US. New
deal in 1H means Bango has secured 3 out of 5 key US telcos,
opening up subscription bundling to >200M US customers
- The DOCOMO Digital (DDL) integration cost synergies are 90%
complete. On track to deliver profitability in line with consensus
expectations.
Financial Overview:
Results for the 6 months ended 30 June
2023 |
1H23 |
1H22 |
Change |
Revenue |
$20.3M |
$10.8M |
+88% |
Annual recurring revenue (ARR)
1 |
$5.6M |
$3.4M |
+63% |
|
|
|
|
Adjusted EBITDA2 |
($0.2M) |
$2.9M |
|
|
|
|
|
Profit/(Loss) before
taxation |
($4.9M) |
($1.2M) |
|
|
|
|
|
Cash |
$13.4M |
$5.7M |
|
Financial highlights:
- Revenue increased to $20.3M (1H22: $10.8M). Growth driven by
payment & subscription volumes, new DVM contracts and a
contribution from the acquisition of DDL. Bango payments revenue,
including the DDL contribution is typically 40:60 weighted
1H:2H
- ARR grew to $5.6M. This growth will accelerate as DVM
contracts won in 1H23 launch
- Gross profit margin remains high at 90% in 1H23 (2H22:
90%)
- Actions to deliver $19M of the $21M of guided cost synergies
are already complete and the benefit to profit margins of synergy
actions taken in 1H23 will materialize through 2H23
- Adjusted EBITDA2 of -$0.2M (1H22: $2.9M), is ahead of the July
trading update and reflects the impact of costs associated with the
DDL integration. Adjusted EBITDA is in line with management
expectations for 1H23
Operational highlights:
- 2 new US DVM wins in 1H23, including 1 additional top 5 US
operator, strengthens Bango leadership position in the US
market
- DVM contract with Japanese employee benefits provider, Benefit
One, illustrates the additional opportunity for the DVM in
verticals outside telco
- Bango Payments continues to grow, evidenced by the new Amazon
and Google routes announced
- 22 new merchants connected to the Bango Platform in 1H23 with
an increasing number using Bango Audiences, to find new paying
consumers and drive growth.
Outlook
- Bango is on track to meet consensus market expectations for the
full year
- There is a healthy pipeline of DVM deals. The expected launch
of services from the wins in the first half gives Management
confidence that Bango will exit the year with a run rate of $10M
ARR
- As full synergies from the acquisition are realised, Bango will
see Adjusted EBITDA margins increase and is on track to deliver a
substantial increase in Adjusted EBITDA for FY24.
- Strong free cash flow generation expected in FY24.
Paul Larbey, Chief Executive Officer of Bango,
commented:
“I am excited about the opportunities for our Super Bundling
strategy. Our leadership in the telecommunications market was
extended by the acquisition of DOCOMO Digital one year ago.
Profitability and cash generation will grow, as we deliver on the
synergies from the acquisition. Our focus on the Digital Vending
Machine is already delivering revenue growth. The recurring revenue
generated from the DVM deals already won will drive exponential
growth in the years to come.”
Presentation and Webcast
A presentation of the interim results will be made to investors
and analysts at 8.30am this morning via the Investor Meet Company
Platform. Those wishing to join the call can sign up to Investor
Meet Company for free and add to meet BANGO
PLC via:https://www.investormeetcompany.com/bango-plc/register-investor
Notes
1 |
ARR is calculated by annualizing
the June 2023 revenue derived from ongoing, contracted, repeating
revenues |
2 |
Adjusted EBITDA is earnings
before interest, tax, depreciation, amortization, share based
payment charge, negative goodwill and exceptional items. |
|
|
Contact
Details:
Bango PLC |
Singer Capital Markets (Nominated Adviser and Joint
Broker) |
Stifel Nicolaus Europe Limited (Joint Broker) |
+44 1223 617 387 |
+44 20 7496 3000 |
+44 20 7710 7600 |
investors@bango.com |
|
|
|
|
|
Paul Larbey, CEO |
Harry Gooden |
Nick Adams |
Matt Garner, CFO |
Jen Boorer |
Richard Short |
Anil Malhotra, CMO |
Asha Chotai |
Ben Burnett |
Rebecca Jamieson, IR |
|
|
|
|
|
About Bango
The world's largest online merchants, including
Amazon, Google and Microsoft, use Bango technology to acquire more
paying users.
Bango has developed unique purchase behavior
technology that enables millions more users to buy the products and
services they want, using innovative methods of payment including
carrier billing, digital wallets and subscription bundling. Bango
harnesses this purchase activity into valuable marketing segments,
called Bango Audiences. Merchants use these audiences to target
their marketing at paying customers based on their purchase
behavior. Better targeting increases spend through the Bango
payments business, in turn generating more data insights, creating
a powerful virtuous circle that drives continuous growth. Everyone
connected to the Bango Platform thrives as the virtuous circle
grows.
Bango, the technology behind every payment
choice. For more information, visit www.bangoinvestor.com
CEO Statement
Introduction
While subscriptions aren't new, in recent years
they have become the dominant way that we pay for goods and
services from music, video and gaming to food, health,
transportation and educational services. Analysts are excited about
the growth of the subscription economy, expecting over $600B of
consumer spend on digital subscriptions within the next 3 years and
over $1 Trillion spent on subscriptions across all categories.
Bango has unique technology that enables merchants to benefit from
Super Bundling – where telcos and other channel partners offer
their customers an integrated hub of subscription services. This
technology is the Bango Digital Vending Machine which is the
defacto solution in the Super Bundling market. Powering this
opportunity is our number one priority for 2023. To do this while
completing the integration of DOCOMO Digital requires focus, strong
execution and a great team; all things that I am proud to say Bango
has in abundance.
The growth in the subscription economy coupled
with our dominance in the Super Bundling market, particularly in
the US where Bango powers 3 out of the top 5 service providers, is
reflected in our 88% revenue growth in 1H23.
Integration
In the first half, we continued the rapid
integration of the teams and customers brought into Bango through
the DOCOMO Digital acquisition at the end of August 2022. As we
start the second half of the year, our plan to realize $21M of
annualized cost synergies is practically complete, with actions
already taken to deliver $19M of these. The migration of routes to
the Bango Platform will complete in 2024 as planned and a number of
low value routes have been exited. The organizations are fully
integrated and the simplification of the former DOCOMO Digital
business is well advanced. There is a natural delay from the
synergies being executed to them benefiting our profitability. The
simplest example is headcount reductions where, due to notice
periods, cost savings begin around one quarter after the redundancy
is triggered.
As the benefits from the cost synergies executed
in 1H 2023 flow through, the result is a step up in EBITDA in 2H23
and beyond.
The acquisition also accelerated the growth of
the Bango team working on the Platform. The ability to rapidly
assimilate technical staff with domain expertise has allowed Bango
to grow the team faster than we could have hoped for.
Payments
The Payments business continues to grow. Due to
the concentration of big spending events in the second half of the
year (Christmas, Black Friday, Amazon Prime Day, New Year
celebrations), revenue is typically 40:60 weighted.
Our strategy is to continue to support the
global merchants as they expand, to use the platform benefit to add
new merchants to existing wallet and DCB connections and to enable
telco billing for DVM customers. The connection to the Global Tech
leader (announced in June last year) is complete and the first
launches are expected in 1H 2024.
Audiences
In my statement reported in the FY22 results, I
listed the three focus areas for Bango Audiences.
- Focus on a smaller number of larger app developers
- Expand into brand marketing direct and with agencies
- Support Digital Vending Machine merchants in finding new
customers
I am pleased to say that great progress has been
made across all three areas. We launched campaigns with sports
brands Sweaty Betty and Vuori and reached agreement with the first
large marketing agency who has launched a campaign for a global
financial services brand and is expanding their use of Audiences to
major retailer campaigns.
The ability to target offers using Bango
Audiences is one of the reasons so many DVM merchants have selected
the Bango Platform to help them expand their customer base. I
expect the two businesses to become more tightly coupled as the DVM
business grows.
Digital Vending Machine
(DVM)
Bundling has long been a successful strategy for
telcos. In the past 10 years bundling voice, mobile data, fixed
broadband, TV etc became commonplace, termed Triple or Quad play
services. Telcos bundled these services to increase revenue and
also to reduce churn – the logic being the more services you had
the harder it was to leave. With the emergence of
direct-to-consumer streaming services with original content, such
as Netflix, Prime Video & Disney+, it became expensive and
often impossible for telcos to purchase the wholesale content
rights and bundle through a set-top-box. This led to telcos
starting to bundle third party streaming services with certain
broadband tiers. This type of bundle is a consumer offer that Bango
has enabled between merchant and telcos for many years (see our
latest announcement on the 70 Amazon Prime bundling
connections).
Super Bundling is simply the ability to manage
and pay for all your subscriptions in a single place, and on a
single bill. This provides significant benefits for everyone:
For the Consumer:
- Easier to see the total cost of subscriptions and manage
renewals
- Access to discounts and special offers
- Simpler to discover and try new services – no need to provide
credit card details
For the bundler (telco):
- Increased revenue per customer – the telco takes a margin for
each subscription sold
- Reduced churn – switching broadband is straight forward.
Switching broadband and 5-10 additional subscription services is
much more difficult
- Exciting new services and offers to attract new customers
For the subscription provider (e.g.
Netflix):
- Access to a new customer group
- Increased subscribers with lower churn than credit card
- Additional marketing - the bundler is now marketing the
subscription services
The DVM is the Bango product powering this Super
Bundling opportunity. It is built on, and shares the advantage of,
the broader Bango Payments Platform, i.e. connect once, access
many. The Super Bunding market is new but growing quickly. In the
telco space, Bango is the Super Bundling technology partner for
many of the largest telcos, including three out of the top five in
the US (Verizon and T-Mobile having been previously announced and
the other, won in 1H23, we are unable to name). The remaining two
have not yet launched a Super Bundling proposition and remain
active targets. The business is therefore in a "footprint capture”
phase, where revenue growth is driven by winning and launching new
telcos. The Bango DVM provides a solution for telcos of all sizes
with many smaller operators having launched or looking to launch
Super Bundling to help them differentiate their offers. These
telcos start on the bottom tier of license revenue which for a
large telco could be circa $1M. Once launched, and at volume, the
business enters the “capacity growth” phase where license fees will
significantly increase.
Some simple maths shows the telco opportunity is
huge and Bango is well positioned to become the market leader in
subscriptions bundling.
Paul Larbey CEO
CFO
statement Following the acquisition of DOCOMO
Digital at the end of August 2022 and the growth of the DVM
business, Bango revenue has continued to grow. Bango has executed
on its acquisition strategy to reduce the costs associated with the
DDL business, while also investing in the Bango Platform and the
development of the new DVM offer.
Bango business model
As in previous years, Bango continues to report
on one line of business, being payment transactions processed by
the Bango Platform for both physical and digital goods,
subscriptions managed by the DVM and the monetization of payment
data. The growth in the DVM business can be seen from the
reported Annual Recurring Revenue (ARR). ARR is calculated by
annualizing the end-month revenue in the period derived from
ongoing, contracted, repeating revenues.
Revenue
Revenue increased 88%
to $20.3M (1H22: $10.8M).
During the period, the Japanese Yen continued to
weaken against the US Dollar which had some negative impact on
revenue from Japan which forms a significant portion of the
acquired DOCOMO Digital revenue.
Bango Annual Recurring Revenue continues to show
good growth moving from $3.4M at 1H22 to $5.6M at 1H23, a 63%
increase.
Bango earns further payment revenue from
transactions processed through the Bango Platform, license fees
from DVM Agreements, data monetization revenue from the insights
provided through this activity and through other methods, such as
integration fees, which are recognized on completion of contracted
milestones and in line with International Financial Reporting
Standard 15; Revenue from Contracts with Customers.
Gross margin is high at 90.0% of revenue in 1H23
(1H22: 92.8%).
Operating expenditure of continuing
operations
Bango adjusted operating costs for 1H23, which
exclude depreciation, amortization, share based payments, negative
goodwill and exceptional items, were $18.5M, up from
pre-acquisition costs of $7.2M for 1H22. The increase was largely
driven by the acquired costs of the DDL business, especially
related to headcount. These costs are reducing as part of the
synergy savings being executed.
Adjusted EBITDA was negative $0.2M,
(1H22: $2.9M) as a result of the increased costs but was in
line with expectations for the first half.
Exceptional costs for the period of $3.3M
include the disposal of a non-trading subsidiary acquired in the
DDL transaction ($2.6M), further write downs of the intangible
assets related to the DOCOMO Digital platform ($0.6M) and office
cost expenses related to the unsuccessful acquisition of a new
Bango office ($0.1M).
The Negative goodwill ($3.8M) relates to the
fair value adjustment of deferred tax which formed part of the
opening balance sheet and amends the negative goodwill of $10.2M
recognized at the year-end as at 31 December 2022 to $14M.
The share-based payment charge
was $1.1M (1H22: $0.8M) calculated using the
Black-Scholes-Merton model. Bango continues to view this benefit as
a key driver for employee engagement allowing them to benefit from
growth in the share value of the company and this benefit was
extended, where possible, to those who joined as part of the DDL
acquisition.
Continued investment in the Platform, combined
with the development of the DVM offering and advancements in the
automation of the Audiences offering, has seen depreciation and
amortisation rise in cost from $2.5M in 1H22 to $3.5M in 1H23 as
capitalised R&D is released into production and amortized.
Loss and loss per share
The loss after tax
was $4.3M (1H22: $0.5M) after accounting for a share
of the net loss of associates (NewDeep JV) using the equity method:
$0.5M (1H22: $0.8M).
Bango takes advantage of the R&D tax credit
scheme available to businesses carrying out qualifying R&D and
this gave a benefit of $0.7M (1H22: $0.7M). The process of
submission has changed this year with further revisions and
restrictions on values that can be claimed coming into force from
April 2024. Bango will continue to make use of this benefit in
future years although the return will be reduced from these new
rule changes.
Basic loss per share was a loss of 5.55c (1H22:
0.65c).
Cash
Cash and short-term cash investments as
at 30 June 2023 were $13.4M (31 December
2022: $12.7M) including the loan received from key investor
NHN Corporation ($7.9M). Bango continued to generate cash from
operating activities during the period.
Matthew GarnerChief Financial Officer
|
Consolidated statement of comprehensive
income |
for the six months ended 30 June
2023 |
|
|
|
|
|
|
|
|
Six months |
|
|
|
Six months |
|
|
|
|
ended |
|
|
|
ended |
|
|
|
|
30
June 2023 |
|
|
|
30 June
2022 |
|
|
|
|
Unaudited |
|
|
|
Unaudited |
|
|
Note |
|
$ 000 |
|
|
|
$ 000 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
20,274 |
|
|
|
10,789 |
|
Cost of
sales |
|
|
(2,026 |
) |
|
|
(781 |
) |
Gross profit |
|
|
18,248 |
|
|
|
10,008 |
|
Administrative expenses |
|
|
(22,596 |
) |
|
|
(10,431 |
) |
Adjusted EBITDA |
|
|
(231 |
) |
|
|
2,851 |
|
Exceptional items |
3 |
|
(3,336 |
) |
|
|
- |
|
Negative goodwill |
3 |
|
3,798 |
|
|
|
- |
|
Share based payments |
|
|
(1,067 |
) |
|
|
(819 |
) |
Depreciation |
|
|
(512 |
) |
|
|
(103 |
) |
Amortization |
|
|
(3,000 |
) |
|
|
(2,352 |
) |
Operating loss |
|
|
(4,348 |
) |
|
|
(423 |
) |
Finance
costs |
|
|
(103 |
) |
|
|
(1 |
) |
Finance
income |
|
|
2 |
|
|
|
12 |
|
Share of net
loss of associates accounted for using the equity method |
6 |
|
(489 |
) |
|
|
(799 |
) |
Loss
before taxation |
|
|
(4,938 |
) |
|
|
(1,211 |
) |
Income tax
income |
|
|
683 |
|
|
|
714 |
|
Income for the period (attributable to equity
holders of the company) |
|
|
(4,255 |
) |
|
|
(497 |
) |
Other comprehensive income |
|
|
|
|
Items that may be reclassified subsequently to profit or
loss |
|
|
|
|
Foreign
exchange on consolidation |
|
|
1,969 |
|
|
|
(3,773 |
) |
(Loss) and
total comprehensive income for the financial period |
|
|
(2,286 |
) |
|
|
(4,270 |
) |
|
|
|
|
|
Loss
per share |
|
|
|
|
|
|
|
|
|
Note |
|
|
|
|
|
|
|
|
|
Basic loss
per share |
4 |
(5.55) c |
|
(0.65) c |
|
|
|
|
|
Diluted loss
per share |
4 |
(5.55) c |
|
(0.65) c |
|
|
|
|
|
Notes 1 to 8 are an integral part of the consolidated interim
financial statements. |
Consolidated statement of financial position as at 30 June
2023 |
|
|
|
|
|
|
|
Note |
|
|
30 June 2023 Unaudited $ 000 |
|
|
|
31 December 2022Audited $ 000 |
|
ASSETS |
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
|
Property, plant and
equipment |
|
|
|
1,128 |
|
|
|
1,145 |
|
Right of use assets |
|
|
|
2,615 |
|
|
|
2,640 |
|
Intangible assets |
|
|
|
33,187 |
|
|
|
27,244 |
|
Investments accounted for
using the equity method |
6 |
|
|
4,061 |
|
|
|
3,766 |
|
|
|
|
|
40,991 |
|
|
|
34,795 |
|
Current
assets |
|
|
|
|
|
|
|
|
|
Trade and other
receivables |
|
|
|
13,439 |
|
|
|
22,016 |
|
Research and development tax
credits |
|
|
|
1,926 |
|
|
|
2,030 |
|
Short-term investments |
|
|
|
41 |
|
|
|
41 |
|
Cash and cash equivalents |
|
|
|
13,361 |
|
|
|
12,657 |
|
|
|
|
|
28,767 |
|
|
|
36,744 |
|
Total
assets |
|
|
|
69,758 |
|
|
|
71,539 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
Capital and reserves
attributable to equity holders of the parent company |
|
|
|
|
|
|
|
|
|
Share capital |
5 |
|
|
24,575 |
|
|
|
24,471 |
|
Share premium account |
|
|
|
63,113 |
|
|
|
62,411 |
|
Merger reserve |
|
|
|
2,886 |
|
|
|
2,886 |
|
Share-based payments
reserve |
|
|
|
5,194 |
|
|
|
4,029 |
|
Foreign exchange reserve |
|
|
|
(1,108 |
) |
|
|
(2,812 |
) |
Accumulated losses |
|
|
|
(63,629 |
) |
|
|
(59,541 |
) |
Total equity |
|
|
|
31,031 |
|
|
|
31,444 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
|
27,144 |
|
|
|
32,533 |
|
Lease liabilities |
|
|
|
792 |
|
|
|
841 |
|
|
|
|
|
27,936 |
|
|
|
33,374 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
Loans and borrowings |
7 |
|
|
7,873 |
|
|
|
- |
|
Trade and other payables |
|
|
|
448 |
|
|
|
512 |
|
Lease liabilities |
|
|
|
1,819 |
|
|
|
1,801 |
|
Deferred tax |
|
|
|
651 |
|
|
|
4,408 |
|
|
|
|
|
10,791 |
|
|
|
6,721 |
|
Total
liabilities |
|
|
|
38,727 |
|
|
|
40,095 |
|
Total equity and
liabilities |
|
|
|
69,758 |
|
|
|
71,539 |
|
|
|
|
|
|
|
|
|
|
|
Notes 1 to 8 are
an integral part of the consolidated interim financial
statements. |
|
Consolidated cash flow statement for the six months ended
30 June 2023 |
|
|
|
|
|
|
|
|
Six months ended 30
June 2023 |
|
|
|
Six months ended 30 June 2022 |
|
|
|
|
Unaudited |
|
|
|
Unaudited |
|
|
|
|
$ 000 |
|
|
|
$ 000 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
Loss for the period |
|
|
(4,255 |
) |
|
|
(497 |
) |
Adjusted
for: |
|
|
|
|
|
|
|
|
Depreciation of property,
plant & equipment |
|
|
512 |
|
|
|
103 |
|
Amortization of
intangibles |
|
|
3,000 |
|
|
|
2,352 |
|
Negative goodwill
recognized |
|
|
(3,798 |
) |
|
|
- |
|
Net finance costs |
|
|
101 |
|
|
|
(11 |
) |
Share based payments |
|
|
1,067 |
|
|
|
819 |
|
Share of profit or loss of
associate |
|
|
489 |
|
|
|
799 |
|
Taxation credit |
|
|
(683 |
) |
|
|
(714 |
) |
Decrease/(increase) in trade
and other receivables |
|
|
9,142 |
|
|
|
(2,570 |
) |
(Decrease)/increase in trade
and other payables |
|
|
(5,282 |
) |
|
|
1,162 |
|
Cash generated from operating
activities |
|
|
293 |
|
|
|
1,443 |
|
Corporation tax received |
|
|
796 |
|
|
|
62 |
|
Net cash generated
from operating activities |
|
|
1,089 |
|
|
|
1,505 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
Purchases of property plant
and equipment |
|
|
(76 |
) |
|
|
(368 |
) |
Addition to intangible fixed
assets |
|
|
(8,318 |
) |
|
|
(4,601 |
) |
Short-term investments |
|
|
- |
|
|
|
945 |
|
Interest received |
|
|
2 |
|
|
|
11 |
|
Additional investment in
associate |
|
|
(631 |
) |
|
|
- |
|
Net cash outflow from
investing activities |
|
|
(9,023 |
) |
|
|
(4,013 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
Proceeds from issue of
ordinary shares |
|
|
806 |
|
|
|
172 |
|
Proceeds from borrowings |
|
|
7,873 |
|
|
|
- |
|
Interest payable |
|
|
(39 |
) |
|
|
- |
|
Interest payments on finance
lease obligations |
|
|
(64 |
) |
|
|
- |
|
Capital repayments on finance
lease obligations |
|
|
(484 |
) |
|
|
(37 |
) |
Net cash flows from
financing activities |
|
|
8,092 |
|
|
|
135 |
|
|
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents |
|
|
158 |
|
|
|
(2,373 |
) |
Cash and cash equivalents at 1
January |
|
|
12,657 |
|
|
|
8,706 |
|
Effect of exchange rate
fluctuations on cash held |
|
|
546 |
|
|
|
(628 |
) |
Cash and cash
equivalents at 30 June |
|
|
13,361 |
|
|
|
5,705 |
|
|
|
|
|
|
|
|
|
|
Notes 1 to 8 are
an integral part of the consolidated interim financial
statements. |
|
Consolidated statement of changes in equity for the six
months ended 30 June 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
|
|
Sharepremium account |
|
|
|
Merger reserve |
|
|
|
Share based payment reserve |
|
|
|
Foreign currency translation |
|
|
|
Retained earnings |
|
|
|
Total |
|
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January
2023 |
|
|
24,471 |
|
|
|
62,411 |
|
|
|
2,886 |
|
|
|
4,029 |
|
|
|
(2,812 |
) |
|
|
(59,541 |
) |
|
|
31,444 |
|
Loss for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,255 |
) |
|
|
(4,255 |
) |
Foreign exchange
translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
265 |
|
|
|
(265 |
) |
|
|
- |
|
|
|
- |
|
Foreign exchange on
consolidation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,969 |
|
|
|
- |
|
|
|
1,969 |
|
Total comprehensive
income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
265 |
|
|
|
1,704 |
|
|
|
(4,255 |
) |
|
|
(2,286 |
) |
Share-based payment
transactions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,067 |
|
|
|
- |
|
|
|
- |
|
|
|
1,067 |
|
Transfer for exercised
options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(167 |
) |
|
|
- |
|
|
|
167 |
|
|
|
- |
|
Exercise of share options and
warrants |
|
|
104 |
|
|
|
702 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
806 |
|
Transactions with
owners |
|
|
104 |
|
|
|
702 |
|
|
|
- |
|
|
|
900 |
|
|
|
- |
|
|
|
167 |
|
|
|
1,873 |
|
At 30 June
2023 |
|
|
24,575 |
|
|
|
63,113 |
|
|
|
2,886 |
|
|
|
5,194 |
|
|
|
(1,108 |
) |
|
|
(63,629 |
) |
|
|
31,031 |
|
|
|
Share capital |
|
|
Share premium account |
|
|
Merger reserve |
|
|
Share based payment reserve |
|
|
Foreign currency translation |
|
|
Retained earnings |
|
|
Total |
|
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January
2022 |
|
|
24,392 |
|
|
|
62,057 |
|
|
|
2,886 |
|
|
|
3,635 |
|
|
|
2,109 |
|
|
|
(58,265 |
) |
|
|
36,814 |
|
Loss for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(497 |
) |
|
|
(497 |
) |
Foreign exchange
translation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(395 |
) |
|
|
395 |
|
|
|
- |
|
|
|
- |
|
Foreign exchange on
consolidation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,773 |
) |
|
|
- |
|
|
|
(3,773 |
) |
Total comprehensive
income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(395 |
) |
|
|
(3,378 |
) |
|
|
(497 |
) |
|
|
(4,270 |
) |
Share-based payment
transactions |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
819 |
|
|
|
- |
|
|
|
- |
|
|
|
819 |
|
Transfer for exercised
options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(168 |
) |
|
|
- |
|
|
|
168 |
|
|
|
- |
|
Exercise of share options and
warrants |
|
|
34 |
|
|
|
138 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
172 |
|
Transactions with
owners |
|
|
34 |
|
|
|
138 |
|
|
|
- |
|
|
|
651 |
|
|
|
- |
|
|
|
168 |
|
|
|
991 |
|
At 30 June
2022 |
|
|
24,426 |
|
|
|
62,195 |
|
|
|
2,886 |
|
|
|
3,891 |
|
|
|
(1,269 |
) |
|
|
(58,594 |
) |
|
|
33,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes 1 to 8 are
an integral part of the consolidated interim financial
statements. |
|
1 General
information
Bango PLC (“the Company”) was incorporated on 8
March 2005 in the United Kingdom. Bango PLC is domiciled in the
United Kingdom. Bango PLC's shares are listed on the Alternative
Investment Market of the London Stock Exchange ("AIM"). The Bango
registered office is at Botanic House, 100 Hills Road, Cambridge,
CB2 1YG, United Kingdom. The Bango principal place of business is
326 Science Park, Milton Road, Cambridge, CB4 0PZ, United
Kingdom.
2 Basis of preparation
These interim financial statements are for the
six months ended 30 June 2023. They do not include all the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2022, which
have been filed at Companies House with an unmodified audit
report.
These interim financial statements have been
prepared in accordance with UK-adopted International Accounting
Standards ("IFRS"). These financial statements have been prepared
under the historical cost convention.
These interim financial statements have been
prepared in accordance with the accounting policies adopted in the
last annual financial statements for the year to 31 December 2022.
The accounting policies have been applied consistently throughout
the Group for the purposes of preparation of these interim
financial statements and are expected to be followed throughout the
year ending 31 December 2023.
These financial statements are presented in US
Dollars (USD), the presentation currency of Bango PLC Group. The
Group's functional currency is GBP Sterling.
3 Exceptional items and negative
goodwill
|
|
2023 |
|
|
|
$ 000 |
|
Restructuring costs |
|
2,643 |
|
Asset write-down |
|
553 |
|
Bango office costs |
|
140 |
|
|
|
3,336 |
|
The restructuring costs relate to the closure of
the Net-M subsidiary during the period.
The asset write-down relates to development
costs incurred on the former Docomo Digital platform that would
ordinarily be capitalized under IAS 38, but due to the planned
migration to the Bango Platform, the costs have been expensed.
Bango office costs relate to expenses incurred
in the unsuccessful acquisition of a new Bango office.
|
|
2023 |
|
|
|
$ 000 |
|
Negative goodwill |
|
3,798 |
|
|
Negative goodwill relates to the fair value
adjustment of the deferred tax which formed part of the opening
balance sheet and amend the negative goodwill of $10.2M recognized
as at 31 December 2022. Following further reviews, the deferred tax
liability is no longer required.
4 (Loss) / earnings per
share
(a) Basic
Basic loss per share are calculated by dividing
the profit attributable to equity holders of Bango Plc by the
weighted average number of ordinary shares in issue during the
period.
|
|
|
|
Six months ended 30 June
2023 Unaudited $
000 |
|
|
|
|
Six months ended 30 June 2022 Unaudited $ 000 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
|
(4,255 |
) |
|
|
|
(497 |
) |
Loss attributable to equity
holders of Bango PLC |
|
|
|
(4,255 |
) |
|
|
|
(497 |
) |
Weighted average number of
ordinary shares in issue |
|
|
|
76,641,638 |
|
|
|
|
76,074,109 |
|
|
|
|
|
|
|
|
|
|
Basic (loss) /
earnings per share |
|
|
|
|
|
|
|
|
Basic loss per share
attributable to equity holders |
|
|
(5.55) c |
|
|
|
(0.65) c |
|
|
Basic adjusted (loss) / earnings per
share
Adjusted basic (loss) / earnings per share is a
key financial information which discloses the financial performance
of the core business for which the directors have direct control.
Adjusted basic (loss) / earnings per share is determined as the
profit attributable to equity holders of Bango Plc excluding the
Bango Plc share of the net loss of associate for the period,
negative goodwill and exceptional items divided by the weighted
average number of ordinary shares in issue during the period.
|
|
|
|
Six months ended 30 June
2023 Unaudited $
000 |
|
|
|
|
Six months ended 30 June 2022 Unaudited $ 000 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
|
(4,255 |
) |
|
|
|
(497 |
) |
Exceptional items |
|
|
|
3,336 |
|
|
|
|
- |
|
Negative goodwill |
|
|
|
(3,798 |
) |
|
|
|
- |
|
Share of net loss of
associates accounted for using the equity method |
|
|
|
489 |
|
|
|
|
799 |
|
(Loss) / profit attributable
to equity holders of Bango PLC |
|
|
|
(4,228 |
) |
|
|
|
302 |
|
Weighted average number of
ordinary shares in issue |
|
|
|
76,641,638 |
|
|
|
|
76,074,109 |
|
|
|
|
|
|
|
|
|
|
Basic adjusted (loss)
/ earnings per share |
|
|
|
|
|
|
|
|
Adjusted basic (loss) /
earnings per share attributable to equity holders |
|
|
(5.52)
c |
|
|
|
0.40 c |
|
|
|
(b) Diluted
At 30 June 2023
8,422,410 options over ordinary shares of (30 June 2022: 6,554,141)
were outstanding. |
|
|
|
|
Six monthsended 30 June 2023
Unaudited$ 000 |
|
|
|
Six monthsended 30 June 2022 Unaudited$ 000 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of
ordinary shares in issue |
|
|
76,641,638 |
|
|
|
76,074,109 |
|
Options |
|
|
- |
|
|
|
- |
|
Weighted average number of
ordinary shares in issue (including options) |
|
|
76,641,638 |
|
|
|
76,074,109 |
|
|
|
As required by IAS33 (Earnings per Share), the impact of
potentially dilutive options was disregarded for the purposes of
calculating diluted loss per share in the current and previous
periods as the Group was loss making.
Diluted (loss) / earnings per share |
|
|
|
Diluted (loss) / earnings per
share attributable to equity holders |
(5.55) c |
|
(0.65) c |
Diluted
adjusted earnings per share |
|
|
|
Six months ended 30 June 2023
Unaudited $ 000 |
|
|
|
Six months ended 30 June 2022 Unaudited $ 000 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of
ordinary shares in issue |
|
|
76,641,638 |
|
|
|
76,074,109 |
|
Options |
|
|
- |
|
|
|
1,064,927 |
|
Weighted average number of
ordinary shares in issue (including options) |
|
|
76,641,638 |
|
|
|
77,139,036 |
|
|
|
As required by IAS33 (Earnings per Share), the impact of
potentially dilutive options was disregarded for the purposes of
calculating diluted loss per share in the period as the Group was
loss making.
Diluted adjusted (loss) / earnings per share |
|
|
|
Diluted adjusted (loss) /
earnings per share attributable to equity holders |
(5.52) c |
|
0.39 c |
|
5 Share capital
Allotted, called up and fully paid shares
|
|
30 June 2023 |
|
31 December 2022 |
|
|
|
|
No. |
|
|
|
|
$ 000 |
|
|
|
No. |
|
|
|
|
$ 000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 January of 0.20
each |
|
|
|
76,331,846 |
|
|
|
|
24,471 |
|
|
|
76,013,659 |
|
|
|
|
24,392 |
|
Exercise of share options and
warrants of 0.20 each |
|
|
|
427,362 |
|
|
|
|
104 |
|
|
|
318,187 |
|
|
|
|
79 |
|
|
|
|
|
76,759,208 |
|
|
|
|
24,575 |
|
|
|
76,331,846 |
|
|
|
|
24,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Interest in associates and other
investments Interest in associates
The interest in associate relates to the group's 40% interest in
the NewDeep Limited group.
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
$ 000 |
|
|
|
$ 000 |
|
|
|
|
|
|
|
|
|
|
Opening balance as at 1
January |
|
|
3,766 |
|
|
|
5,630 |
|
Addition – NewDeep Limited
group |
|
|
631 |
|
|
|
- |
|
Other investments |
|
|
- |
|
|
|
76 |
|
Share of operating losses |
|
|
(489 |
) |
|
|
(1,393 |
) |
Foreign exchange
movements |
|
|
153 |
|
|
|
(547 |
) |
Closing balance as at 30
June |
|
|
4,061 |
|
|
|
3,766 |
|
|
7 Loans and borrowings
|
30 June |
31 December |
|
2023 |
|
2022 |
|
$ 000 |
|
$ 000 |
Non-current loans and
borrowings |
|
|
Borrowing |
|
7,873 |
|
- |
|
During the period the Group entered into a three
year loan agreement with NHN Corporation for $7.9M. The loan was
secured with a fixed annual interest rate of 6%. The loan is
payable over eight quarterly instalments beginning in September
2024.
8 Publication of non-statutory
accounts
The condensed consolidated interim financial
information was approved by The Board of Directors on 17 September
2023.
The financial information set out in this
interim report does not constitute statutory accounts as defined in
section 435 of the Companies Act 2006. The figures for the period
ended 31 December 2022 have been extracted from the Statutory
Financial Statements of Bango PLC, which have been filed with the
Registrar of Companies. The auditor's report on those financial
statements is unqualified and did not contain any reference to any
matters to which the auditors drew attention to by way of emphasis
without qualifying their report a statement under section 498(2) or
498(3) of the Companies Act 2006. The interim financial information
for the six months to 30 June 2023 is unaudited. The interim report
together with an analyst briefing presentation will be distributed
to all shareholders and will be available on the Bango investor
site at www.bangoinvestor.com.
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