Bango plc (LON:BGO) Customer Concentration

Last week I added Bango plc (LON:BGO) to the UK portfolio and noted that customer concentration was a risk to the company. Here are some mitigating factors:

  1. Competition is limited due to the time it takes to onboard sufficient mobile carriers and the level of end user spend required to break even (~$1 billion).
  2. The tech giants (who account for most of Bango's revenue) are worth hundreds of billions of dollars. Bango generated < £2 million via its most significant partner in 2018 which is a trifling quantity to these corporations. If Bango's revenue grows to a size where they might be tempted to recreate the technology in-house then its share price will be multiples of what it is today.
  3. Mobile carriers make significantly more from each transaction than Bango. Would they be willing to deal directly with the likes of Amazon should the latter decide to dispense with Bango's services?

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