Bango PLC (AIM:BGO, OTCQX:BGOPF) has reported a remarkable 62% increase in revenue to $46.1 million for 2023, alongside a 29% rise in adjusted EBITDA to $6.4 million, slightly exceeding the forecasts shared in a January trading update. This financial uptick was partly attributed to FX reclassification, marking a year of significant growth for the company.
A standout performer was the Digital Vending Machine (DVM), which saw a 77% surge in recurring revenue. CEO Paul Larbey highlighted this achievement as a cornerstone for the company's future expansion plans. The DVM's success is underscored by the signing of nine new contracts in 2023, bringing the total to 18 by year-end, with an additional four secured in the first quarter of 2024. This expansion has more than doubled the Annual Recurring Revenue (ARR) from £5 million at the end of 2022 to £11 million by the end of Q1 2024.
The integration of Docomo Digital, a recent acquisition by Bango, is already showing promise, with £21 million in annualised cost synergies realised and further savings identified. This strategic move is expected to significantly enhance cash generation and profitability in the coming years.
Bango's market presence in North America has been bolstered, with contracts now in place with three of the top five operators. The company is also diversifying its portfolio by exploring opportunities in financial services, signaling a strategic pivot beyond its traditional telecommunications base.
With analyst projections for 2024 anticipating a 16% revenue growth, Bango has already outpaced this target in the first quarter with a 20% increase. This positive trajectory underscores the company's robust growth strategy and its ability to exceed market expectations, positioning Bango as a leader in the digital payments and mobile commerce sectors.
