Bango plc · LSE:BGO
Bango — H1 FY2011 Earnings Presentation
23 slides from Bango's earnings presentation, November 2010
Slide 1: Bango Interim Results FY2011
Bango Interim Results FY2011 for 6 months to 30th September 2010 November 2010 www.bangoinvestor.com - Highlights - Business Progress - Financials - Outlook - Supplementary June 9th 2009 1
Slide 2: About Bango
About Bango Bango customers include: – Founded in 1999 to enable effective collection of payments from mobile device users – Leading global brands choose Bango for mobile payments and analytics (the only vendor to combine both services) – Bango technology, relationships and user Operator relationshi
Slide 3: Bango benefits for content providers
Bango benefits for content providers User Histories: Accurate Analytics: Dynamic generation and Revenues & Refunds, Campaigns,, history / data on 100M+ users Insight, Effectiveness Higher Sales Lower Costs Better Information Collect payments from mobile devices: Single technical and commercial integ
Slide 4: Smartphone Market Dynamics
Smartphone Market Dynamics US Mobile Content Market Mobile Apps Market 4.0 $3.5 35.0 $32.0 $3.1 30.0 Figures in USD billions $26.4 Figures in USD billions 3.0 $2.5 25.0 $21.7 $2.0 20.0 $17.9 2.0 $1.5 $14.7 $1.1 15.0 $12.1 $10.0 1.0 10.0 5.0 0.0 0.0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2
Slide 5: App Stores becoming strategic
App Stores becoming strategic China Mobile LG Verizon Mobile launched its App BlackBerry Web Games and launched Store in August, App World 2.0 launched App Store its App 2009 June 2010 launched in April, Store in July, 2009 2009 Orange launched its App Sony Ericsson’s Nokia Ovi App Store in App Stor
Slide 6: Bango is a powerful tool for App Stores
Bango is a powerful tool for App Stores • Technology to enable Mobile Operator billing (enables greater reach than credit cards) • Interfaces (API’s) and Analytics for Developers • Automated “back-office” processes • Extensive analysis and anti-fraud tools for the App Store operator • Clearing & set
Slide 7: BlackBerry App World
BlackBerry App World Powerful Leader: BlackBerry is best selling US smartphone* 55% market share in North America* >161 mobile operator partners* >104m installed base* App World downloaded by >35m users >1.5m app downloads per day Available in over 70 countries* Chose Bango: Bango will serve as the
Slide 8: Bango focus on this high value opportunity
Bango focus on this high value opportunity • Building team to focus on App World delivery for RIM - ensure success of AppWorld 2.0 - in-depth technical and developer support - ability to integrate ~100 new carriers in 2011 - ensure security, privacy, scalability • Strengthen Payment and Analytics “i
Slide 9: App Store business model
App Store business model Standard Bango Model: In December 2009, Apple Small share of end user revenues AppStore, with 58m users, generated $250m Revenues. Source: GigaOm Monthly operating fee Additional capabilities: Special mobile operator integration work (accelerate new ones or dedicated connect
Slide 10: Content Aggregator business
Content Aggregator business • Majority of Bango’s end user spend currently driven by several large Content Aggregators • Bango estimates 5-10% of their business has migrated to Bango, to benefit from better conversion rates, user experience and analytics • Following litigation around premium SMS (PS
Slide 11: Bango Analytics growth
Bango Analytics growth Analytic Events recorded - Daily and 28 day Moving Average – Current volumes 13X 2yrs ago 15.0 14.0 – Revenues driven by customer 13.0 sign-ups and transaction volumes 12.0 Volume vs November 2008 daily average 11.0 – In App analytics developed 10.0 and launched on 3rd October
Slide 12: Product development
Product development • In-Application Payment - Leverages existing mobile operator and credit card connections - Easy to integrate into Android, Blackberry, Symbian or other apps - Starting to be deployed in apps such as Shazam & Flirtomatic • In-Application Analytics - Uses existing back-end collect
Slide 13: H1FY11: Revenue by segment
H1FY11: Revenue by segment H1FY11 H1FY10 £m £m 14 End user End user activity activity 9.80 11.59 12 CP Fees % of total 92% 94% 10 Content provider fees 0.81 0.73 8 % of total 8% 6% £m 6 Total revenue 10.61 12.32 4 • £2m reduction from 2 two large Content Aggregators 0 • BlackBerry AppWorld 08 08 09
Slide 14: H1FY11: Gross profit
H1FY11 : Gross profit H1FY11 H1FY10 £m £m End user activity 1.0 Content provider fees End user activity 0.41 0.62 0.9 % of total 34% 46% 0.8 Content provider fees 0.80 0.71 0.7 % of total 66% 54% 0.6 £m 0.5 Total gross 0.4 profit 1.21 1.33 0.3 0.2 • High margin earnings 0.1 continued to improve 0.0
Slide 15: H1FY11: Operating Expenses
H1FY11 : Operating Expenses Operating expenses • Opex includes spend on (before dep'n & sbp) RIM task-force / start-up 3.5 • P&L opex expected to remain 3.0 at present levels in 2nd half 2.5 • Capitalised £0.48m for: 2.0 £m – Mass outpayment 1.5 – In-App Analytics – Emerging market project 1.0 0.5 0
Slide 16: H1FY11: P&L
H1FY11 : P&L H1FY11 H1FY10 £m £m Revenue Revenue 10.61 12.32 16 Gross profit Total admin expenses exc capitalized R&D Cost of Sales (9.40) (10.99) 14 Operating profit/(loss) Gross profit 1.21 1.33 12 10 Operating expenses (1.47) (1.41) 8 Dep’n and amortisation (0.15) (0.10) £m 6 Share based payments
Slide 17: H1FY11: Cashflow
H1FY11 : Cashflow H1FY11 H1FY10 £m £m Net cash used by operating activities (1.10) (0.27) Cash flows from/ (used by) investing activities Purchase of property, plant and equipment (0.02) (0.05) Addition to intangible assets (0.48) (0.37) Net cash from/(used by) investing activities (0.50) (0.42) Pro
Slide 18: FY2011 – Outlook & opportunities
FY2011 – Outlook & opportunities • Bango sees a big and exciting pipeline of prospective business ahead • Project to provide carrier billing for BlackBerry AppWorld presents a significant business opportunity • App Stores promise to be new and increasingly important channels, and new services develo
Slide 19: Supplementary Slides
Supplementary Slides 19
Slide 20: Optimum Web or App user experience
Optimum Web or App user experience User browses Bango collects Confirmation and site the payment download App running In-app “Pay Confirmation on device now” button of payment 20
Slide 21: Components of Bango Platform
Components of Bango Platform BILLING COLLECTION OUTPAYMENT Identify / Locate Basics: Basics: - Reporting - Calculation - Reconciliation - Reconciliation BillRank™ - Refunds - Refunds - Chargebacks - Chargebacks Age Verification - Missing items - Fees / fines User Histories: Risk / Fraud Added Value:
Slide 22: Joined up App Analytics
Joined up App Analytics Link apps with marketing Link app and website use Goals Measure goals Websites In-app Measure campaigns campaigns Marketing campaigns Payments Measure billing / User 523673 sales information Consumers Downloads Apps Measure errors App Store Measure app usage Understand Track
Slide 23: Business Model: Fee + Percent of Transaction
Business Model: Fee + Percent of Transaction Revenue flow Biller keeps c. 20% - 40% Bango Bango collects Bango processes sends content payments earnings partner c. 60% - 80% Bango share based on Bango keeps biller type, transaction c. 2% - 5% size and volumes Settlement Month 1 Month 2 Month 3 Month