Bango teases investors with Amazon deal

Aim-listed Bango said it has signed an agreement to provide services to Amazon, but gave no specifics as to what they were.

"The terms of this agreement are not being disclosed," said the mobile technology company, which specialises in mobile billing and analytics solutions.

"The board believes it is too early in the relationship to accurately forecast the level of business which it may generate," it added.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

But this was enough for investors who scrambled for the shares, pushing their value up 20% in early trading.

Perhaps significantly however, the firm has over the past month suggested that it was in the process of signing up a major customer for its billing technology business, which uses mobile phone technology to allow customers to make payments using their mobile phones which are then charged on their phone bills.

The news was a welcome relief for shareholders who saw Bango issue a profit warning in November.

The company said end user spend - and hence revenue - was slower than predicated and as a result it was unlikely to meet market expectations for the full year.

In a late trading update ahead of its interim results, the firm said growth in revenues from RIM (Blackberry) related App stores, especially from newer carriers, had been slower than expected.

At the time Merchant Securities said at £20m for the year optimistically, the lower revenues would leave profit expectations just above break-even.

MM/NR