Bango Plc · LSE:BGO
Bango — FY2015 Earnings Presentation
21 slides from Bango's earnings presentation, Mar 15, 2016
Slide 1: Bango FY2015 results presentation
Bango FY2015 results presentation Highlights Financial review Business update & outlook 15 March 2016 Ray Anderson CEO Rachel Elias-Jones CFO © 2016 Bango plc Version bango.com
Slide 2: Financial highlights FY2015
Financial highlights FY2015 • EUS exiting FY2015 over 100% higher than FY2014 ‒ EUS strong growth in End User Spend (EUS) in line with expectations ‒ Increase of 78% to £44.7m • Stable cost base ‒ Reduced in year due to operational efficiencies ‒ Total gross profit stable at £1.3m ‒ Cash balance of
Slide 3: Momentum increased during FY2015
Momentum increased during FY2015 • 1h2015 – First Google Play DCB launches in South America – All five app stores launched with du (UAE MNO) in under nine months • Exit run rate: £42m/yr • 2h2015 – First Google Play DCB launch in Africa – Declared No.1 for app store carrier billing – Bango Boost tec
Slide 4: Strong growth drivers entering 2016
Strong growth drivers entering 2016 Market expansion • Smartphone penetration and adoption continuing to grow ‒ More users will have access to content • Growth in content sales from app stores with DCB becoming increasingly important ‒ The range of app store content expanding Activity through the pl
Slide 5: Financial review FY2015
Financial review FY2015 Rachel Elias-Jones, CFO © 2016 Bango plc bango.com
Slide 6: Principal model
Principal model • Bango agility enables app stores to select either agency or principal model 15¢ Biller fee $1 content Bango receives • Bango acts as content seller purchase from purchase amount store 100¢ 2¢ Bango fee • Bango collects entire EUS, 100¢ + tax net of tax 100¢ 13¢ Store fee • Purchase
Slide 7: Agency model
Agency model • Increasing percentage of agency EUS has led to decreasing turnover 15¢ Biller fee $1 content Store receives • Store acts as content seller purchase from purchase amount store 100¢ 2¢ Bango fee • Store receives EUS and 100¢ + tax distributes fees 100¢ 13¢ Store fee • Bango receives tra
Slide 8: Profit & Loss FY2015
Profit & Loss FY2015 FY2015 FY2014 • EUS £44.7m Audited Audited (FY2014: £25.2m) + 78% growth YoY £m £m End user spend 44.68 25.17 • Margin on EUS £0.81m (FY2014: £0.60m) Sources of Margin End user 0.80 0.60 • Platform fees Platform fees 0.46 0.73 Total Margin 1.26 1.33 – Reduced to increase access
Slide 9: End User Spend accelerating
End User Spend accelerating • Growth accelerating as expected • 2h2015 EUS grew to £26.2m (1h2015: £18.5m) • Half year rate equivalent EUS 2016 Week 10 x 26 £40m (Week 10 x 26) 9
Slide 10: End User Spend 2016 outlook
End User Spend 2016 outlook • Historic data to model the EUS from the activations live in Dec 2015 P • Model predicts EUS from these activations will grow 100% by Dec 2016 End User Spend £million GBP S • Too early to predict EUS from: S • >30 scheduled activations • P >200 more activations in pipeli
Slide 11: Operating expenses 2015
Operating expenses 2015 £5 • Stable cost base - FY2015: £4.4m slightly lower than FY2014: £5m ‒ service insourcing £1.7 £4 £0.9 ‒ cost reduction program Running the platform • 24/7 team educating MNOs on Bango Boost Annual Opex £m £3 £1.2 £1.3 Sales & marketing (shown as sales and marketing) Other £
Slide 12: Balance sheet FY2015
Balance sheet FY2015 FY2015 FY2014 Audited Audited • Cash invested: £m £m – to support activity in India, Japan, Nigeria and Brazil Non-current assets 3.95 4.27 • Healthy cash balance following November 2015 Trade and other receivables 1.13 1.11 fundraise R&D tax credits 0.22 0.24 Cash and cash equi
Slide 13: Cash flow FY2015
Cash flow FY2015 FY2015 FY2014 Audited Audited • Cash raised in November 2015 to strengthen the balance sheet £m £m Net cash used by operating activities (3.25) (3.18) • £11m raised in placing with new and existing shareholders Net cash generated investing activities used by (1.02) (0.99) (£10.4m ra
Slide 14: Business update & outlook
Business update & outlook Ray Anderson, CEO © 2016 Bango plc bango.com
Slide 15: Bango in the mobile payment industry
Bango in the mobile payment industry Other Store cards Carrier Charge billing bill to phone MNO direct Wallets Cash register 15
Slide 16: Bango is #1 for app store carrier billing
Bango is #1 for app store carrier billing 43% 12% 45% Total app store carrier billing activations Source: Progressive Research September 2015
Slide 17: Why app stores and MNOs partner with Bango
Why app stores and MNOs partner with Bango More revenue More launches Operators gain up to 70% growth in App stores fast-track carrier billing revenue from Bango Boost technology activation using Bango Grid
Slide 18: Strong app market growth
Strong app market growth 2014 • App download market US$27bn • 83bn apps downloaded • 7% directly billed to mobile customers, global addressable DCB provider market $1.3bn 2019 forecast • Volume of app downloads to rise to 286bn • Market will reach US$79bn annually • DCB segment will contribute $11.8
Slide 19: The future of carrier billing
The future of carrier billing 2014 2019 Market value USD$2bn Market value USD$19bn Physical goods Apps and games Media (video / music / books / magazines) Other (gift cards / ticketing / parking / transport etc) • Entertainment categories dominate the market • Significant growth in media category dr
Slide 20: Summary & outlook
Summary & outlook 2015 2016 • Increased market • Continue doubling share of EUS run rate • Doubled End User • Greater contribution Spend run rate from emerging markets • Cost base • EUS growth on stable stable cost base • Balance sheet • Maintain strong strengthened cash position • Trialed Bango Boo
Slide 21: The Bango pedigree
The Bango pedigree Powering the major app stores: • Number 1 for app store carrier billing • Founded in 1999 to enable effective collection of mobile payments • Chosen by the worlds leading app stores and mobile operators Over 140 mobile operator relationships: • Bango technology delivers a superior