Bango plc · LSE:BGO
Bango — FY2012 Earnings Presentation
24 slides from Bango's earnings presentation, Jun 25, 2012
Slide 1: Bango Final Results
Bango Final Results For the year ended 31 March 2012 25th June 2012 © 2012 Bango plc www.bango.com 1
Slide 2: About Bango
About Bango Bango customers include: • Founded in 1999 to enable effective collection of payments from mobile device users over the internet • Leading global brands choose Bango for mobile payments and analytics • Bango technology, relationships and user data enable a superior user experience, 90+ O
Slide 3: What Bango does
What Bango does ….. Streamline the user payment experience Pay For thousands of digital merchants 3
Slide 4: Why Bango? Common user identity across multiple services / apps
Why Bango? Common user identity across multiple services / apps Enables better user experience than any other solution: more sales Bango Payment Platform User identity: Single technical and commercial Operational Bango ID merges multiple identities integration with 90+ billing systems systems using
Slide 5: Example: One-click billing over Wi-Fi
Example: One-click billing over Wi-Fi Visit #1 – via operator network Visit #2 – via Wi-Fi …hours or days later… User identified over One-click billing operator network experience presented 5
Slide 6: The opportunity…
The opportunity… (1) Smartphone base growing fast: (2) Driving app and advertising revenues: (3) With much more growth to come: 6
Slide 7: Bango has a strong proposition
Bango has a strong proposition • Technology to enable mobile operator billing (greater reach than credit cards) • Unique common identity platform improves user experience & sales (better results than direct connection or any potential competitor) • Broad range of direct operator billing integrations
Slide 8: Bango is gaining momentum
Bango is gaining momentum Platforms Smartphone users iTunes •Marketplace 8
Slide 9: Progress with industry leaders
Progress with industry leaders Growth phase General deployment Early stage usage Announced relationship First months 12 months 24 months Note: Bango does not announce the revenues of its customers 9
Slide 10: Momentum with industry leaders
Momentum with industry leaders Growth Launch Pre-launch - More than 40 direct carrier connections in 34 countries “Opera is already working with - Announced December 2011 several valuable partners including - 125% uplift in monthly sales from InMobi SmartPay, Yandex.Money carrier billing and Bango t
Slide 11: Facebook started using Bango in June 2012
Facebook started using Bango in June 2012 Screens generated by Bango for Facebook to collect payments B ph ang on o e on bi ll t h an d” c r er co “M f re o • Provide quick and easy payment for mobile apps • Part of Facebook Platform for developers • Early stage – developer roll-out – not yet in pos
Slide 12: New opportunities
New opportunities - MasterCard announced its - Microsoft has existing mobile - Google Play is App and Media PayPass Wallet Services at payment capabilities and store for Android CTIA WIRLESS ® in May 2012 relationships which it uses to deliver payment platforms for its - Mobile Network Operators - A
Slide 13: Bango Analytics growth
Bango Analytics growth • Volumes more than doubled in last year • Significant customers include: NBA, CNN, Thomson Reuters, Telefonica-O2 Volume of Bango Analytics Events • Growth driven by increasing deployment in mobile web sites and in downloaded applications • Android, Apple, BlackBerry, Windows
Slide 14: FY March 2012 Operational Highlights
FY March 2012 Operational Highlights • Connected to in excess of 900 million consumers through more than 90 mobile operators world-wide • Now including operators in South America, Africa and Asia • Continuing momentum with industry leading names • Superior user experience enhanced through product de
Slide 15: FY March 2012 Financial Highlights
FY March 2012 Financial Highlights • Turnover for the year of £15.6m (FY2011: £19.3m) • Gross Profit £2.29m (FY2011: £2.49m) • LBITDA & SBP at £0.45m (FY2011: loss of £0.40m) • Total loss after tax £0.93m (FY2011: loss of £0.70m) reflecting an increased amortisation charge for previously capitalized
Slide 16: Bango business model
Bango business model 5¢ 100¢ 75¢ Bango net revenue 70¢ approx. 5% 25¢ User Biller Content $1.00 buys $1 cost Provider gross revenue item 25% earns 70% e.g. Notes: e.g. (1) % may vary by biller and CP (2) Taxes excluded for simplicity Month 1 Month 2 Month 3 Month 4 Settlement Transactions Receipts f
Slide 17: FY2012: Turnover and Gross Profit
FY2012 : Turnover and Gross Profit Gross Profit • Most of FY2011 end user spend was feature-phone legacy • Most of FY2012 end user spend was smartphone • Margin on end user spend stable at 3.7% • FY2011 included one off revenue from a large app store 17
Slide 18: FY2012: Operating Expenses
FY2012 : Operating Expenses • Opex broadly stable YoY • £300k saving from discontinued feature-phone activity partially offset by work on Amazon & Facebook activity • Monthly Opex* expected to increase slightly from present levels in 9m2012 due to senior hires and Operational team growth • Capitaliz
Slide 19: FY2012: P&L
FY2012 : P&L £m FY2011 FY2012 Turnover End user activity 17.46 13.81 Other fees 1.86 1.78 Total revenue 19.32 15.59 Gross profit End user 0.64 0.51 Other fees 1.85 1.78 Total gross profit 2.49 2.29 Margin % End use activity 3.7% 3.7% Other fees 99.4% 100.0% Total margin % 12.9% 14.7% Operating costs
Slide 20: FY2012: Cashflow
FY2012 : Cashflow • Net cash 31 March 2012 £1.8m (£2.71m at 31 March 2011) £3m share issue Jun 12 No borrowings during the half year • Growth in transaction volumes is cash generative due to cash arriving before it is settled to content providers. (and vice versa) • Investment in platform hardware /
Slide 21: Competitive landscape
Competitive landscape • In house development: - slow to deliver (unable to leverage existing connections) - expensive and risky - no cross supplier synergies - no access to special relationships • PC / PSMS Approaches - poor user experience - legacy PSMS problems - do not exploit unique mobile devic
Slide 22: End user spending drivers
End user spending drivers • Mobile operator connections - ability to pay on phone bill increases sales - mobile operators more supportive of “on bill” app stores • App store activity drives spending - The number of smartphones suited to that app store - The visibility of the app store on devices - M
Slide 23: Strategy
Strategy • Strengthen service and commercial offering - ensure continued high levels of service, operational delivery and scalability - enable more West Coast USA presence - strengthen management team • Operational changes - recruiting into new COO role, to lead key operational functions - retiremen
Slide 24: Outlook and opportunities
Outlook and opportunities • 9m2012 is a pivotal year in Bango’s development - Facebook and Amazon progressing well - Continuing build-up of business from app stores in growth and deployment phases, such as BlackBerry and Opera - Microsoft and other large scale opportunities being developed • Expect