Bango plc · LSE:BGO
Bango — FY2009 Earnings Presentation
19 slides from Bango's earnings presentation, Jun 9, 2009
Slide 1: Bango Prelims for 12 months to 31st March 2009
Bango Prelims for 12 months to 31st March 2009 © 2009 Bango plc www.bango.com June 9th 2009
Slide 2: Who is Bango?
Who is Bango? • Founded in 1999 to enable the Chosen by mobile operators marketing & monetization of digital to drive off-portal business goods to users of mobile phones with internet connectivity • 50 people in New York and Cambridge (UK) Chosen by leading businesses • Listed on London Stock Exchan
Slide 3: Bango Prelims agenda
Bango Prelims 12mths to March 31st 09 FY09 Financials - Revenues & margins - Operating expenses - Profit & Loss - Cashflow Operational Review - Growing transaction volumes - Growing customer base - Sales and Marketing - Product development Market developments & Outlook 3
Slide 4: Summary of Financial Indicators
Summary of Financial Indicators Overall Revenues up 28% YOY High growth in US Revenues Gross Margin maintained Revenues £M 10.9 US End User Spend £M 7.4 Gross Margin £M 12.0 8.0 1.8 7.0 1.6 1.32 1.40 1.37 1.40 10.0 1.26 6.0 1.4 1.14 8.0 6.8 6.9 6.7 1.2 5.8 5.0 1.0 6.0 4.6 4.0 2.4 0.8 3.0 0.6 4.0 2.0
Slide 5: Weekly End User Spend / £Thousands
End user spend 600 • Significant growth in end user activity in 2H09 500 • US customers starting to Weekly End User Spend / £Thousands move business to Bango 400 • Mix of games, music, videos, applications 300 • More than 30% now monthly subscriptions 200 US End User Spend £M 7.4 8.0 7.0 100 6.0 5.0
Slide 6: Revenue by segment
Revenue by segment Revenues £M 10.9 12.0 10.0 8.0 6.8 6.9 6.7 5.8 6.0 4.6 4.0 2.0 Analysis by half year 0.0 07 07 08 08 09 09 2H 1H 1H 2H 1H 2H FY 09 FY 08 H2 09 H1 09 H2 08 H1 08 £’000 £’000 £’000 £’000 £’000 £’000 End user activity 15,912 11,723 9,997 5,915 5,934 5,789 % of total 90% 85% 92% 88% 8
Slide 7: Revenue by geography
Revenue by geography Analysis by half year Revenue type Revenue (£'000) FY 09 FY 08 H2 09 H1 09 H2 09 End Content user provider United Kingdom 6,783 10,680 2,998 3,785 2,562 436 % of total 38% 78% 28% 56% 26% 50% USA & Canada 9,807 1,441 7,444 2,363 7,183 261 % of total 56% 10% 69% 35% 72% 30% Rest
Slide 8: Overall gross margins
Overall gross margins Analysis by half year Gross margin FY 09 FY 08 H2 09 H1 09 £’000 £’000 £’000 £’000 End user activity 1,015 1,016 549 466 % of total 38% 37% 39% 37% Content provider fees 1,644 1,721 855 789 % of total 62% 62% 61% 63% Other (1) 0 28 0 0 Total margin 2,659 2,765 1,404 1,255 Margi
Slide 9: Operating Expenses
Operating Expenses • Expenses down 26% vs FY08 OPEX* £M 3.5 • Expected to remain broadly 3.0 2.8 2.7 2.4 at present levels to Dec 09 2.5 2.0 1.8 2.0 1.4 1.5 • Current systems tested to 1.0 0.5 $100M/month capacity and 0.0 10 times current analytics 07 08 09 07 08 09 2H 2H 2H 1H 1H 1H transaction vol
Slide 10: Opex and P&L
Opex and P&L Analysis by half FY 09 FY 08 H2 09 H1 09 Administrative Expenses £,000 £’000 £’000 £’000 Operating expenses 3,134 4,189 1,426 1,708 Depreciation 123 221 19 104 3,257 4,410 1,445 1,812 Share based payments 62 258 19 43 3,319 4,668 1,464 1,855 Profit after tax £M 0.4 0.11 Income statement
Slide 11: Cashflow & balance sheet
Cashflow & balance sheet Analysis by half FY 09 FY 08 H2 09 H1 09 Cashflow £’000 £’000 £’000 £’000 Net cash generated / (used) by operations (376) (873) 667 (1,043) Cash from / (used by) investing activities (399) 45 (391) (8) Closing Cash £M 6.0 (775) (828) 276 (1,051) 5.0 Cash from financing activ
Slide 12: Bango Prelims agenda
Bango Prelims 12mths to March 31st 09 FY09 Financials - Revenues & margins - Operating expenses - Profit & Loss - Cashflow Operational Review - Growing transaction volumes - Growing customer base - Sales and Marketing - Product development Market developments & Outlook 12
Slide 13: Growing Transaction Volumes
Growing Transaction Volumes • Grow market share with viable financial return • Significant growth in end user spending as our “High potential customers” start to migrate from SMS aggregators to Bango CP Sprint AT&T New- UK CCard DE ES USA A 10+ customers B US carriers + C European countries D etc. $
Slide 14: Growing customer base
Growing customer base • Introduced lower priced, market focussed products • Easy web sign-up process • 30 day free trial • Telesales team to assist sign-ups • Upgraded on-line customer service 14
Slide 15: Product Development: Visit Buy Pay
Product Development Bango provides highest payment conversion rate Marketing through unique technology Campaign and relationships Visit Buy Pay Navigate Payment your site Payment Confirmed Viral, App or Bookmark Y% Exit without paying 15
Slide 16: Bango payment is increasingly compelling
Bango payment is increasingly compelling • Bango delivers highest conversion rates - automatically select best option - best user experience on many devices - best operator billing connectivity - works on increasingly popular Wifi networks - handle international visitors • Higher conversion rates de
Slide 17: Optimizing user experience
Optimizing user experience: Example: Credit Card Credit Card Optimum: Credit Card 1st time experience Standard experience Single button Phone browser optimized flow to capture Bango stores card data to enable single Subject to additional approval, payment essential credit card information securely p
Slide 18: Market developments
Market developments • Increasingly “content capable” devices • More use of mobile internet • Increasing use of Wifi alongside Operator networks • Shift from “offline” to online: mobile web marketing • Move back to “paid for” content as advertising rates fall • Leaders in mobile content using Bango s
Slide 19: Summary
Summary • Customers migrating their mobile content payment business to Bango to benefit from increasing conversion rates • Analytics product is very complementary and starting to gain revenues • Approaching profitability / positive cashflow • Scalability of business enables significant growth in rev