Bango Plc · LSE:BGO
Bango — Investor Presentation (February 2013)
23 slides from Bango's investor presentation, February 2013
Slide 1: Bango overview
Bango overview February 2013 © 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 • 59 employees • List
Slide 3: The smartphone opportunity
The smartphone opportunity… (1) Smartphone base growing fast: (2) Driving app and advertising revenues: (3) With much more growth to come: 3
Slide 4: What Bango does
What Bango does ….. Streamline One-click the user payment payment increases experience sales Pay For thousands of digital merchants 4
Slide 5: Already at scale
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 5 Sample of Bango transactions from a sampled minute:
Slide 6: User experience can be life or death
User experience can be life or death … Warrior needs a sword during game-play (mobile payment example) Pay with PayPal (Zong) Pay with Bango 1. Choose your sword 1. Choose your sword 2. Click & type phone number 2. One click to pay 3. Click to continue 3. Get the sword 4. Wait for a text message 5.
Slide 7: Facebook – Operator billing examples
Facebook – Operator billing examples 7
Slide 8: Bango business model
Bango business model 5¢ 100¢ 75¢ Bango net revenue 70¢ 5% 25¢ User Biller Content $1.00 buys $1 cost Provider gross revenue item 25% earns 70% Notes: e.g. (1) Illustrative Numbers Only e.g. (2) % may vary by biller and CP (3) Taxes excluded for simplicity (4) Bango net revenue typ 2-5% Month 1 Month
Slide 9: Bango has a unique edge
Bango has a unique edge Common user identity across multiple services / apps Direct operator billing gives 300% - 1,000% sales uplift. Bango ID boosts that further by enabling one click even on Wi-Fi Bango Payment Platform User identity: Single technical and commercial Bango ID merges multiple ident
Slide 10: Bango is gaining momentum
Bango is gaining momentum Platforms Smartphone users iTunes Store 10
Slide 11: 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 12: 9m2012 Operational progress
9m2012 Operational progress • Mobile operator integrations Direct billing relationships completed into >90 MNO • Payments & analytics new releases and £1m upgrade of primary datacentre • COO David Keeling and CFO Gerry Tucker joined leadership team 12
Slide 13: 9m2012 Results (unaudited)
9m2012 Results (unaudited) • Unaudited management accounts show that gross margin on end user spend has remained stable at around the 3.7% level which is within Bango’s longer term target range of between 2% and 5% • Loss for the period of approximately £2.4 million (as advised in market update) • O
Slide 14: 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 Store integration underway in the initial countri
Slide 15: 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 16: Emerging market opportunities
Emerging market opportunities • Brazil - New Telefonica Relationship Opening up LATAM - Opportunity for activity with other MNO in LATAM • India - Breakthough with BlackBerry World – now integrating - Google and Facebook engaged • Other Asia - BlackBerry interest based on BB10 opportunities - High i
Slide 17: £6.5m fundraise
£6.5m fundraise • Underwrite emerging market opportunity • Boost sales/business development to win further MNO partnerships - Telefonica partnership is real coup for Bango - Want to repeat with other major MNO groups • Balance sheet to enable datacentre financing if needed 17
Slide 18: 2013 outlook and opportunities
2013 outlook and opportunities • Continued adoption of Bango technology by leading industry players with Facebook and Amazon progressing • BlackBerry BB10 launch 30th January BlackBerry World to be more than apps • Potential for significant growth from mobile operators partnering with Bango to provi
Slide 19: Appendix
Appendix
Slide 20: 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 21: 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
Slide 22: 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 22
Slide 23: 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