Bango Plc · LSE:BGO
Bango — FY2006 Earnings Presentation
25 slides from Bango's earnings presentation, June 2006
Slide 1: Bango plc Annual Results
Bango plc Annual Results Year ended 31st March 2006 www.bango.com investor@bango.com 1
Slide 2: Bango FYE 31st March 2006
Bango FYE 31st March 2006 • Strong financial performance demonstrates sound business model • Wide range of customer wins • Expansion into 3 new countries with strong growth in content provider sign-ups • Powerful position starting new financial year • Market continues to evolve in Bango’s favour but
Slide 3: Contents
Contents • What Bango does • Financial Highlights • Operational Highlights • Financial Review - P&L, Margins, Expenses, Margins, Cashflow • Business Review - Key Business Drivers - Customer wins and end user activity - Product mix - Regional Sales Expansion - Key agreements announced - Product Devel
Slide 4: What Bango Does
What Bango Does Businesses with valuable content and services Content Providers of all sizes pay Bango to use its unique “browse & On-Portal Direct to Consumer buy” platform, enabling Commercial Relationship with Promote and engage each Mobile Operator directly with phone users them to offer content
Slide 5: Financial Highlights FYE 31st March 2006
Financial Highlights FYE 31st March 2006 • Revenues up 121% to £7.53m (FY05: £3.41m) • Gross Profit up 125% to £2.19m (FY05: £0.97m) • Opex up 92% to £3.72m (FY05: £1.93m) due to planned expansion • Pre-tax loss £1.33m down to 17.7% t/o (FY05: £0.92m, 26.9%) • UK operation profitable & cash generati
Slide 6: Operational highlights
Operational highlights • Strong progress during the year: - Major Customer Wins - Number of sign ups from high value customers increased by 250% • Solid base for continued growth - USA, Spain, Germany operations established and productive - Partner Program grew from 3 to 14 accredited partners at ye
Slide 7: Financial Review
Financial Review 7
Slide 8: Revenue (£ '000)
Revenue Chart 5,000 4,325 4,500 4,000 3,500 3,175 Revenue (£ '000) 3,000 2,500 2,162 2,000 1,500 1,264 1,068 1,000 641 500 209 103 0 1H03 2H03 1H04 2H04 1H05 2H05 1H06 2H06 8
Slide 9: P&L
P&L £000’s FYE 31 March YE 2006 YE 2005 Total revenues 7,533 3,414 % growth on FY 2005 121% Total gross profit 2,191 975 % gross margin 29.1% 28.6% Total operating expenses 3,643 1,891 Other operating income 0 26 EBITDA (1,452) (890) Depreciation 76 43 Interest receivable 195 15 Earnings before tax
Slide 10: Operational Efficiency
Operational Efficiency 8 Approx. £1.5million of FY06 7 Opcost invested in: 6 5 £ M illio n s Regional sales and marketing 4 presence: USA (East & West) 3 Germany 2 Spain 1 Product 0 FYE2004 FYE2005 FYE2006 Development. Revenue 2.03 3.41 7.53 Opcost 1.41 1.93 3.72 Gross Margin 0.54 0.97 2.19 10
Slide 11: Results of New Country Investment
Results of New Country Investment UK annual turnover 8,000,000 GBP excluding VAT 7,000,000 UK 6,000,000 Turnover outside UK is 5,000,000 4,000,000 starting to grow more 3,000,000 2,000,000 rapidly as: 1,000,000 0 FY 2004 FY 2005 FY 2006 - overseas sales teams win non-UK content Non-UK annual turnove
Slide 12: Balance Sheet
Balance Sheet 31 Mar 31 Mar £000’s 2006 2005 Fixed assets Tangible assets 343 88 Current assets Debtors 2,267 1,048 Cash at bank 4,863 320 Creditors - amounts falling due within one year 2,186 1,211 Net current assets 4,944 157 Total assets less current liabilities 5,287 245 Capital and reserves Cal
Slide 13: Cash Flow Statement
Cash Flow Statement Year Year £000’s 2006 2005 Net cash flow from operating activities (1,652) (583) Returns on investment and servicing of financing 195 15 (1,457) (568) Taxation 0 0 Capital expenditure (334) (62) Financing (net of costs) 6,334 805 Increase/(decrease) in cash 4,543 175 13
Slide 14: Business Review
Business Review 14
Slide 15: Growth strategy
Growth strategy • Signing-up more content providers to the Bango Platform (high margin monthly recurring package fees) By continuing to develop our products and services By direct sales and marketing activity By enabling and supporting partners to sell our products • Increasing the number of premium
Slide 16: Sales and Marketing Activity
Sales and Marketing Activity • UK: – Leverage “thought leader” position in the UK market. – Maintain stable costs associated with proven model. Business is accelerating with many new customer wins. • USA: – Established US focussed sales & mktg team is twice size of UK operation – Global base for lar
Slide 17: End User Activity
End User Activity • Established Markets: UK, Germany, Scandinavia, Spain, Belgium, Netherlands : Bango has strong position for shift to mobile internet in these markets and operator support • Emerging Market: USA 40% relatively open (Cingular). Others slower to open Slow to implement “adult policies
Slide 18: Product Development
Product Development • New products introduced - Bango Target: maximize revenues by geo-targeting - Bango Identifier: more flexibility for smaller customers - “MaxPay” upgrade deliver benefits of no VAT and PayPal • IP Protection - Second European patent granted - Protected Bango brand in UK - Secure
Slide 19: Key Agreements
Key Agreements • Formed Unique D2C Alliances with Mobile Operators - Cingular (number 1 US operator) - Proximus (Belgium) - Orange (France and UK) - Telefonica (Spain) • Other Payment Providers - Strengthened Global P-SMS coverage with mBlox deal - Unique PayPal mobile relationship - Rationalised an
Slide 20: Summary
Summary Sales, Support & Marketing Doubled in Size - focussed on new markets - leveraging strong network of partners 4 Times more medium or large content providers “live” - more marketing of premium content to end-users - Reference customers won in USA, Germany, Spain Enhanced “bango.com” goes live
Slide 21: Supplementary Slides
Supplementary Slides 21
Slide 22: Benefits of the Bango Service
Benefits of the Bango Service For Content Providers For Mobile Operators • Quickly and easily create a • Content Provider promotions money making mobile internet site get people using their mobiles → more data revenues • Increase revenues using • Share of charges billed pre-integrated billing servic
Slide 23: Unique Bango Technology
Unique Bango Technology af z s ic o a > = 5 i) 23
Slide 24: The Bango Service - Architecture
The Bango Service - Architecture Bango Admin W orkbench Secure XML Interface SMS Trigger Interface Anti-fraud System Content User Payment Register Database System Pricing Bango Number User Financial Payment Payment Database Information Processor • Location • Collects payment from B ILLING Usage end
Slide 25: Browse & Buy
Browse & Buy • Simplifies selection and purchase • Only show user content that they can use, so much less support overhead • Ts&Cs on screen – no subscriptions User navigates Bango takes user content Bango collects Content provider 1 to mobile site & identifies them 2 provider’s mobile site 3 paymen