Bango plc · LSE:BGO
Bango — H1 FY2010 Earnings Presentation
16 slides from Bango's earnings presentation, Dec 1, 2009
Slide 1: Bango Interims for 6 months to 30th September 2009
Bango Interims for 6 months to 30th September 2009 1 December 2009 www.bangoinvestor.com - Business Summary - Business Model - First Half Financials - Operational Review - Opportunities and Outlook June 9th 2009 1
Slide 2: Who is Bango?
Who is Bango? Company Products Customers include Bango provides the technology Bango Payment that enables commerce High efficiency collection of on the mobile web. payments from mobile phone users anywhere in the world Founded in 1999 to enable the marketing & monetization of digital Bango Analytics
Slide 3: Bango for websites selling content
Bango for websites selling content: (2) Bango collects (3) Content Provider payment (1) User browses provides for content to mobile site / app download page Marketing Campaign Payment Confirmed Viral, App or Bookmark Maximize number of payments Bango unique technology Bango collects payment by selec
Slide 4: Market drivers and opportunities
Market drivers and opportunities Infrastructure Commercial • Increasingly “content capable” devices • “offline” to online shift: mobile web marketing • More use of mobile internet • Move to “paid for” content as ad rates fall • Wifi growth alongside Operator networks • Leaders in mobile using Bango
Slide 5: End user spend model and cashflow
End user spend model and cashflow Revenue flow Biller keeps c.35% Bango system generates CP earns profit payment by phone after allowing for: user on billing system. Bango sends - Marketing Costs Content Bango share based on Provider - Cost of Service Delivery biller type, transaction size and volum
Slide 6: Financials for 6 months to 30th September 09
Financials for 6 months to 30th September 09 H1 FY10 Financials - Revenues & margins - Operating expenses - Profit & Loss - Cashflow & Balance Sheet Operational Review - Growing transaction volumes - Growing customer base - Sales and Marketing - Product development Opportunities & Outlook 6
Slide 7: Revenue by segment
Revenue by segment Revenues £M 14.0 12.3 10.9 12.0 10.0 8.0 6.8 6.9 6.7 5.8 6.0 4.6 4.0 2.0 0.0 07 07 08 08 09 09 10 H1 10 H2 09 H1 09 FY 09 1H 2H 1H 1H 2H 2H 1H £’000 £’000 £’000 £’000 End user activity 11,591 9,997 5,915 15,912 % of total 94% 92% 88% 90% Content provider fees etc. 724 864 831 1,69
Slide 8: Gross profit
Gross profit Gross profit H1 10 H2 09 H1 09 FY 09 £’000 £’000 £’000 £’000 End user activity 616 549 466 1,015 % of total 46% 39% 37% 38% Content provider fees 714 855 789 1,644 % of total 54% 61% 63% 62% Total gross profit 1,330 1,404 1,255 2,659 Margin % End user activity 5.3% 5.5% 7.9% 6.4% Conten
Slide 9: Operating Expenses
Operating Expenses • Opex down 15% YoY and expected to remain broadly at present levels to mid 2010 OPEX* £M 3.5 • Able to handle significant 2.8 2.7 3.0 2.4 transaction volume growth 2.5 2.0 1.9 2.0 1.5 1.6 Peak load of $4m/hour 1.5 processed successfully 1.0 0.5 0.0 £150-200K capex planned 07 08 0
Slide 10: P&L 6 months ending Sep 30th 2009
P&L 6 months ending Sep 30th 2009 £million Cost of Gross Revenue Sales Profit H1 09 End-user 11.59 (10.97) 0.62 5.30% 0.47 CP Fees 0.72 (0.01) 0.71 98.50% 0.79 Revenue 12.31 (10.98) 1.33 10.80% 1.26 OPEX Sales & Mktg 0.57 Overheads 0.84 (1.41) (1.71) EBITDA (0.08) (0.45) Depn & Amortization 0.10 0.1
Slide 11: Cashflow & balance sheet
Cashflow & balance sheet H1 10 H2 09 H1 09 FY 09 Cashflow £’000 £’000 £’000 £’000 Net cash generated / (used) by operations (265) 667 (1,043) (376) Cash from / (used by) investing activities (423) (391) (8) (399) (688) 276 (1,051) (775) Cash from financing activities 6 24 451 475 Net increase / (dec
Slide 12: Operational Review
Financials for 6 months to 30th September 09 H1 FY10 Financials - Revenues & margins - Operating expenses - Profit & Loss - Cashflow & Balance Sheet Operational Review - Growing transaction volumes - Margins on end user spending - Content Provider sign-ups - Product development Opportunities & Outlo
Slide 13: Growing Payment Transaction Volumes
Growing Payment Transaction Volumes • Grow transactions from current large customers - Continuing the migration of transactions in our biggest customers from SMS aggregators to Bango Payment - Most large customers start with ONE US operator Example: Start with AT&T (#2) mobile web billing Add Sprint
Slide 14: Margin from payment transactions
Margin from payment transactions Margin on end user spend stable (H1 FY10 5.3%, H2 FY09 5.5%) Activity underway to improve margins: Program Impact Potential result Operator Wi-Fi Additional incentives of 5-10% for adding Linked to Wi-Fi growth incentives transactions from Wi-Fi connected devices e.g
Slide 15: Content provider sign-ups and analytics momentum
Content provider Sign-ups Content provider monthly fees– c.100% GM - pricing now stable after 2008/9 changes - good signup rate with lowered attrition / churn - added “enterprise options” for larger customers Analytics products gaining momentum - up from £6K/month in Mar09 to £12K/month in Sep09 - r
Slide 16: 12 months ahead – outlook & opportunities
12 months ahead – outlook & opportunities • Significant transaction volume & revenue growth - existing customer revenue transfer - new customer activity - new mobile operators (e.g. T-Mobile USA) • Possible margin improvements with US carriers • Stable Opex • Application Stores (BlackBerry, Nokia, M