Bango PLC (AIM:BGO, OTCQX:BGOPF) has reported a remarkable financial performance for the year 2023, with CEO Paul Larbey detailing a 62% surge in revenue to $46.1 million and a 29% rise in adjusted EBITDA to $6.4 million. These figures slightly exceeded the expectations set in a January trading update, attributed in part to foreign exchange reclassification. The company's Digital Vending Machine (DVM) stood out with a 77% growth in recurring revenue, marking a significant milestone in Bango's operational achievements.
The integration of Docomo Digital, a strategic acquisition by Bango, has been completed, promising enhanced cash generation and profitability in the coming years. This move has already yielded £21 million in annualised cost synergies, with further savings identified, underscoring the acquisition's value to Bango's financial health and operational efficiency.
DVM has been identified as a pivotal growth engine for Bango, with the company securing nine new contracts in 2023, bringing the total to 18 by the year's end, and an additional four in the first quarter of 2024. This expansion has significantly boosted the Annual Recurring Revenue (ARR) from £5 million at the end of 2022 to £11 million by the end of Q1 2024, demonstrating the DVM's accelerating contribution to Bango's revenue streams.
Bango's strategic positioning in North America has been strengthened, with contracts now in place with three of the top five operators in the region. The company is also exploring diversification beyond telecommunications, venturing into financial services, which could open new revenue channels and reduce dependency on a single sector.
Looking ahead, Bango maintains an optimistic outlook for 2024, with analyst forecasts predicting a 16% revenue growth. The company has already surpassed this target in the first quarter, achieving a 20% growth, setting a positive tone for the year. For more information on Bango's performance and strategic direction, visit https://www.bango.com.
