Bango PLC
30 January 2007
BANGO PLC
('Bango' or the 'Company')
TRADING UPDATE
Bango is pleased to update the market on its progress during the current
six-month trading period ending 31 March 2007.
'The slowdown in revenue growth we saw in the summer of 2006 appears to be
behind us,' said Ray Anderson, CEO. 'Our sales pipeline is continuing to expand
and signup rates are being maintained. Our focus on improving sales productivity
by supporting our partners, sharing best practice between territories, and
broadening our product range to address the needs of the mobile internet market
is starting to show good progress.'
In recent months, as well as adding new content providers, the Company signed
new contracts with several major mobile operators. These are expected to deliver
a significant increase in revenue and margin, although they may not be
financially significant before the year end. Total revenues for the year are
expected to be in excess of £10m. Margin percentages on end user revenues have
been maintained, meaning net revenues continue to increase and are expected to
be approximately £2.75m for the year.
At the end of the quarter ending December 31 2006, the Company had cash
resources of over £2m. The increasing emphasis on leveraging the Company's
technology and partnerships to reduce selling and marketing costs is starting to
bear fruit. Management expect monthly Opex in March 2007 to be down by 27%
compared with monthly levels in the quarter ending September 2006.
Accordingly, the management expects ongoing monthly cash consumption to be below
£100,000 on exiting the current financial year, based on modest revenue growth
over the remaining two months of this period. Although end user and content
provider revenues have not developed as quickly as expected, end user and
content provider revenues for the third quarter grew 20% compared with the
previous quarter. The loss for the year is expected to be in the midrange of
brokers expectations at about £2.8m.
'I am pleased to report that after a pause earlier in the year, growth has
resumed,' added Lindsay Bury, Chairman. 'Bango is now on course towards our
goal of operating break-even and neutral cash flow, with the move towards
profitability being underpinned by a recurring revenue model, and potentially
accelerated by the activity of larger customers.'
For further information, please contact:
Bango plc Tel. +44 (0)1223 472777
Ray Anderson, CEO / Peter Saxton, CFO
ICIS Limited Tel. +44 (0)20 7651 8688
Tom Moriarty/ Caroline Evans-Jones
About Bango
Founded in 1999, Bango (AIM: BGO) created a revolutionary new technology
platform that enables brands and content providers to rapidly exploit the fast
expanding reach of the mobile internet. Thousands of Bango enabled mobile web
sites have served tens of millions of users through hundreds of mobile operators
world-wide. Bango offers unique advantages to anybody wanting to get visitors to
their site, gain detailed information about them or collect payment from them
wherever they are. Bango technology powers the global media giants, yet is so
easy and economic that small companies and individuals use it too. For further
information, go to www.bango.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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