1h2015 Financial highlights

• End user spend (EUS) increased 72% to £18.45m (1h2014: £10.74m)
• £41.6m EUS annualized run rate for June 2015, £54.8m EUS annualized run rate entering September 2015 (December 2014: £32.9m)
• Despite strengthening GBP, Bango remains on track to meet EUS growth expectations of at least 100% from December 2014 to December 2015
• Gross profit on EUS increased to £0.38m (1h2014: £0.28m), up 36% YoY
• Mix of business shifted towards agency model resulting in gross margin increase to 36% (1h2014: 24%) and EUS margin of 2.1% (1h2014: 2.6%) within target range of 2 to 5%
• Stable Adjusted LBITDA* -£1.82m (1h2014: -£1.85m)
• Opex stable at £2.43m (1h2014 £2.56m) demonstrating scalability of current platform and providing foundation for move to profitability
• Cash balance of £4.04m on 30 June 2015 (30 June 2014: £2.65m; 31 Dec 2014: £6.25m)

Ray Anderson, Chief Executive Officer of Bango, commented:

“Despite the unprecedented strengthening of sterling against almost all of the domestic currencies in countries where we are most active, and a declining market share of Blackberry devices, we have demonstrated an accelerating growth rate and remain on course to meet our 2015 exit run rate expectations.

The Bango cost base remains stable, but Bango technology and growing momentum has enabled increasing levels of engagement with more mobile operators, more App Store activations and has provided tools and technology that has enabled existing activations to grow their revenues quickly.

This progress demonstrates the benefits of the investments in the Bango technology and systems made in 2014, providing a strong foundation for Bango to expand on its position as the industry standard platform. This will benefit App Stores, mobile operators and consumers. It also provides some exciting opportunities for further value creation for Bango in the future.”