Bango and Microsoft expand access to Xbox cloud gaming subscriptions across Europe

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Bango PLC (LON:BGO) said the first three telecoms companies offering bundled Xbox cloud gaming subscriptions in Europe are using Bango’s payments platform.

Microsoft, which makes the Xbox, is using the Bango e-commerce platform to enable telecoms company partners to bundle Xbox Game Pass Ultimate as subscription packages. Later in the year, Xbox All Access will be added to the range of subscription packages.

Xbox Game Pass Ultimate gives gamers access to over 100 high-quality games on console, PC and compatible mobile devices for one low, monthly price, Bango said.

“Through our partnership with Microsoft, Bango enables Telcos to offer Microsoft’s world-class gaming options as part of their consumer bundles. To boost consumer take-up of these bundles, offer targeting will be optimized through Bango data insights”, commented Paul Larbey, CEO at Bango.

Broker Liberum noted that today’s announcement follows on from the expanded partnership between Bango and Microsoft announced in November 2020 to open up consumer access to Xbox subscriptions through telecommunications company partners.

“Monthly subscriptions on both media and gaming content is one of the fastest-growing segments within Bango’s Payments business, which we estimate to have accounted for around 40% of revenues in 2020. This recurring revenue stream helps increase visibility on revenue and earnings, making the business more predictable,” the broker said.

“We expect a healthy take-up for this offer, which is expected to further drive Bango’s growth in 2021 and in subsequent years. We also expect subscription services like this to be offered by an increasing number of Telcos worldwide, in partnership with Bango. Given strong momentum across both the Payments and the Data monetisation businesses, we believe our current forecasts are likely to prove conservative,” the broker said, as it reiterated its ‘buy’ recommendation and 260p target price. 

Shares in Bango were up 0.9% at 217p at noon.

— adds broker comment —

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