Bango plc · LSE:BGO
Bango — 9M 2012 Earnings Presentation
27 slides from Bango's earnings presentation, 2013
Slide 1: Bango 9m2012 Final Results
Bango 9m2012 Final Results Nine months to 31 December 2012 Ray Anderson CEO Gerry Tucker CFO Anil Malhotra CMO © 2013 Bango plc www.bango.com
Slide 2: Introduction
Introduction Bango customers include: • Founded 1999 to enable effective payment for content and services by users of mobile internet devices • World leader in mobile operator billing for smartphones 90+ Operator relationships include: • Offices in Cambridge UK and New York USA • 60 employees • List
Slide 3: What Bango does
What Bango does ….. Streamline One-click the user payment payment increases experience sales Pay For thousands of digital merchants 3
Slide 4: The smartphone opportunity
The smartphone opportunity… (1) Smartphone base growing fast: (2) Driving app and advertising revenues: (3) With much more growth to come: 4
Slide 5: Bango has a unique edge
Bango has a unique edge Extensive direct operator billing connectivity gives 300% - 1,000% sales uplift. Bango’s Common user identity across multiple services / apps boosts that further by enabling one click - even on Wi-Fi This “platform effect” drives sustained competitive advantage. Bango Payment
Slide 6: Operator billing example: Facebook
Operator billing example: Facebook 6
Slide 7: Bango is gaining momentum
Bango is gaining momentum Platforms Smartphone users iTunes Marketplace 7
Slide 8: 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 9: Change in reporting period
Change in reporting period • Changed reporting period to align with calendar year. Now ends 31 December (Announced March 2012) • Current financial statements cover a nine month reporting period from 1 April 2012 to 31 December 2012 • ‘pro-rata’ comparisons are with previous 12 month value * 9/12 (no
Slide 10: Turnover and Margin
Turnover and Margin • Turnover for the 9 months was £7.4m a reduction of 37% on a pro-rata (£11.7m pro-rata) • Reduction in end user activity to £6.0m (down 42% pro-rata) • Other fees increased to £1.4m (up 1% pro-rata) • End user activity reduction caused by managed change away from services from f
Slide 11: Operating Loss
Operating Loss • Loss after taxation £2.4m (year ending 31 March 12: £0.9m) • Additional investment in operating costs of £0.8m (year ended 31 March 2012: nil) to under-pin growth of the business. • £0.4m exceptional personnel costs (year ended 31 March 2012: nil) relating to key hires and contract
Slide 12: Income statement
Income statement For the 9 months ending 31 December 2012 Pro rata 9 months to 9/12 x prior 12 months to 31 Dec 2012 period 31 Mar 2012 £000s £000s £000s Turnover 7,352 11,696 15,595 Attributable to content providers (4,156) (6,491) (8,654) 3,196 5,206 6,941 Cost of sales – payment providers (1,614)
Slide 13: Balance sheet
Balance sheet As at 31 December 2012 31 Dec 2012 31 Mar 2012 £000s £000s ASSETS Non-current assets Property, plant and equipment 639 319 Intangible assets 3,278 2,798 3,9167 3,117 Current assets Trade and other receivables 2,191 2,854 Research and Development tax credits 359 413 Cash and cash equiva
Slide 14: Cash flow statement
Cash flow statement For the 9 months ending 31 December 2012 9 months to 12 months to 31 Dec 2012 31 Mar 2012 £000s £000s Net cash generated / (used) by operating activities (1,581) 123 Cash flows used by investing activities Purchases of property, plant and equipment (360) (248) Addition to intangi
Slide 15: 9m2012 Operational Highlights
9m2012 Operational Highlights • 200+ million billable identities, total reach 1+ billion mobile phone users, connected to 90+ global mobile operators • Strong momentum with industry leaders: – Facebook - USA, UK, France, Germany – Google Play - Telstra in Australia – Microsoft’s Windows Phone Store
Slide 16: 9m2012 Key Performance Indicators
9m2012 Key Performance Indicators • Billing reach >1 billion mobile users - increasingly in emerging markets • Analytics Transaction volume doubled again over 2012 - building user ID database - generating significant margin • End User Spend growth resumed - new smartphone now >80% of spend - Dec 201
Slide 17: 9m2012 Commercial success
9m2012 Commercial success First Blackberry 50 operators July 2012 Global Framework Agreement Telefonica Digital 1st Google Play MNO live Facebook rollout across USA, UK, France and Germany PayPass Wallet integration underway Microsoft’s Windows Phone App Marketplace integration underway in the initi
Slide 18: Post Period Highlights
Post Period Highlights • Global Framework Agreement with Telefónica Digital in January 2013 – Telefonica partnership is real coup for Bango – Want to repeat with other major MNO groups • Powering BlackBerry with > 50 operators BlackBerry 10 launched in January 2013 - seeing transaction volume growth
Slide 19: Emerging market opportunities
Emerging market opportunities • Mobile operators in Colombia, Indonesia, and Egypt integrated during the nine month period • Brazil - New Telefonica Relationship Opening up LATAM - Opportunity for activity with other MNO in LATAM • India - Blackberry World entering India - Google and Facebook opport
Slide 20: Outlook and opportunities
Outlook and opportunities • Unique technology platform, extensive MNO relationships, industry- leading partners at the forefront of developments in the market • Continued adoption of Bango technology by leading industry players with Facebook and Amazon progressing • Potential for significant growth
Slide 21: Appendix
Appendix
Slide 22: A fraction of a second
Already at scale Billing reach >1 billion mobile users - increasingly in emerging markets A fraction of a second Sample from millions of Sample from billions payment transactions of analytics transactions from round the world from round the world 22 Sample of Bango transactions from a sampled minute
Slide 23: Bango Analytics synergy
Bango Analytics synergy • Significant analytics customers include: Total NBA, CNN, Thomson Reuters, Telefonica Growth Trend • Android, iOS, BlackBerry, Windows, HTML5 and other devices all driving traffic • Volumes more than doubled again Y on Y driven by mobile websites & app downloads • Adding mil
Slide 24: Bango Security Strategy
Bango Security Strategy A 1-way hashing with salting B Protection from Minimize value external attack to 3rd Party Bango.net arriving from partners Valuable information and customers Bango.com C D Protect against 3rd Party Audit internal attack Check Personnel 24
Slide 25: Bango's View of Competitive Options
Bango’s View of Competitive Options Aggregators Apple iTunes Offer “carrier components” with Strong iOS position – apps barred little or no value add for website from using Bango Payment. owners HTML5 Opportunity Internal Development Teams Mobile Operators Bango Potential Partner Customer Limited re
Slide 26: Board & Senior Management
Board & Senior Management Ray Anderson – Chief Executive Officer Ray co-founded Bango in 1999 after realizing that the convergence of the internet with the ubiquity of mobile phones could open up huge opportunities for content and service providers. Ray positioned the company to benefit from the ope
Slide 27: Board & Senior Management
Board & Senior Management David Sear, Non-executive Director David Sear is Divisional Managing Director at Travelex Global Business Payments, a company which provides international payment services to 35,000 businesses across 14 countries. David joined Travelex in March 2006 from Voca Ltd (previousl