Bango plc · LSE:BGO
Bango — FY2014 Earnings Presentation
24 slides from Bango's earnings presentation, Mar 10, 2015
Slide 1: FY 2014 Final Results
FY 2014 Final Results Highlights • Presentation topic #1 Financial Review • Presentation topic #2 • Presentation Business topicOutlook Update • Presentation topic #4 Ray Anderson CEO Gerry Tucker CFO Anil Malhotra CMO 10 March 2015 © 2014 Bango plc bangoinvestor.com www.bango.com © 2015 Bango plc
Slide 2: FY2014 Financial highlights
FY2014 Financial highlights • End user spend up more than 60% to over £25m • End user spend gross margin increased to 2.4% • Stable cost base • £6m placing and open offer in October 2014 2
Slide 3: 2014 – solid foundations established
2014 – solid foundations established Bango now chosen by the leading app stores that use DCB New activations accelerating end user spend Secure Bango Platform capable of transacting 20x FY2014 levels • Tested systems at transaction rate equivalent to $1bn pa end user spend • Virtualized resilient da
Slide 4: 2015 expectations
2015 expectations • Digital content sales through leading app stores will continue growing – with DCB becoming increasingly important • Strong predictable growth from existing activations: End user spend from activations live in December 2014 will grow by 100% by December 2015 • Additional growth fr
Slide 5: Financial review 2014
Financial review 2014 • Presentation Gerry Tucker, topic CFO#1 • Presentation topic #2 • Presentation topic #3 • Presentation topic #4 © 2014 Bango plc www.bango.com 5
Slide 6: Growth in end user spend and margin
Growth in end user spend and margin End user spend Turnover Gross profit £25.2m £5.1m £1.3m (+62%) (-42%) (-35%) £4.1m as Principal £4.4m End User £0.6m end user Turnover (-42%) (-62%) Spend margin 2.4% End (+71%) user spend margin (2.3%) £21.1m as Agency £0.7m £0.7m Platform fees (+147%) Platform f
Slide 7: 2014 P&L
2014 P&L FY2014 FY2013 • End user spend £25.2m Audited Audited (2013: £15.6m) £m £m + 62% growth YoY End user spend 25.17 15.55 Sources of Margin • Margin on end user spend 2.4% End user 0.60 0.36 (2013 2.3%) Platform fees 0.73 1.71 Total Margin 1.33 2.07 Within 2-5% medium term range End User Spend
Slide 8: 2013 & 2014 End user spend progression
2013 & 2014 End user spend progression 18 16 Strong growth in end user 0.5x Annualized Feb 2015 14 spend – up 62% YoY End user spend £million GBP 12 Feb 2015 spend data indicates accelerating growth 10 8 New Amazon and Samsung integrations went live at end of 6 2014 - no significant end user spend i
Slide 9: 2015 end user spend outlook
2015 end user spend outlook Sufficient historic data to model the end user spend from the activations live in Dec 2014 P Model predicts end user spend S from these activations will grow approx 100% by Dec 2015 Too early to predict end user spend from: S >30 scheduled activations P >100 more activati
Slide 10: FY2014 operating expenses
FY2014 operating expenses £5 Other • FY2014 cost base stable £0.8 as planned £4 • Low cost of activation and new £1.0 Technology Annual Opex /m Development integrations to enable expansion of use of platform £3 Sales & • Infrastructure tested to £1.2 Marketing >20 times Dec 2014 levels £2 with no pr
Slide 11: Balance sheet FY2014
Balance sheet FY2014 FY2014 FY2013 • Cash invested: Audited Audited £m £m – Infrastructure upgrades to support capacity and resilience Non-current assets 4.23 4.09 – Product development to Trade and other receivables 1.09 1.99 accelerate and grow R&D tax credits 0.23 0.19 new activations (Bango Grid
Slide 12: 2014 cash flow
2014 cash flow FY2014 FY2013 Audited Audited • Cash raised in October £m £m Net cash used by operating 2014 to strengthen the (3.18) (2.53) activities balance sheet Net cash generated used by (1.50) (1.58) investing activities • £6m raised in firm placing Net cash generated from and open offer (£5.6
Slide 13: Business update & outlook
Business update & outlook • Presentation Ray Anderson,topic CEO #1 • Presentation topic #2 • Presentation topic #3 • Presentation topic #4 © 2014 Bango plc www.bango.com 13
Slide 14: Bango in the mobile payment industry
Bango in the mobile payment industry MOBILE AT MOBILE AS THE THE MOBILE CLOSED LOOP DIRECT CARRIER POINT OF SALE POINT OF SALE PAYMENT MOBILE BILLING (DCB) PLATFORM PAYMENTS THE THE THE CHARGE IT TO MY THE STORE WALLET CASH REGISTER “EVERYTHING ELSE” PHONE BILL CREDIT CARD Carrier direct Adapted fro
Slide 15: Bango enables sales to mobile users
Bango enables sales to mobile users 1. App Store integrates with Bango Platform for Direct Carrier Billing Delivering a 2. Bango technology simple, smooth, automatically identifies mobile payment the mobile operator experience and user 3. Bango makes charges to the 4. On any device connected operato
Slide 16: Bango chosen by the major app stores
Bango chosen by the major app stores 16
Slide 17: Bango drives 100x sales in some markets
Bango drives 100x sales in some markets Bango Direct Carrier Billing delivers dramatic increases in sales by reaching many more mobile users than credit cards alone 2x – 3x 3x – 10x 20x – 200x 17
Slide 18: Activations enable end user spend
Activations enable end user spend Telstra illustration • Trust built with app store • Reliability proven with MNO • Capacity to grow: 400,000 users billed in 18mths - 15,600,000 (97.5%) to go 18
Slide 19: The growing digital content market
The growing digital content market DCB used for traditional mobile services - Chat, vote, donate, bid $4Bn Bango DCB used for “OTT” Internet services $1bn - Games, in-App Items focus - Music, Video, Entertainment MNO Portal Mobile Operator “own services” Digital content and services market excludes
Slide 20: Why Bango is important
Why Bango is important The giants of mobile choose the Bango Payment Platform to provide a delightful and immediate payment experience that maximizes sales of digital content. For MNOs: For app stores: a single integration to the giants of a single integration to reach more mobile, and lightning spe
Slide 21: The path ahead
The path ahead Existing activations will grow end user spend New activations in 2015 will accelerate user spend growth MNO Bus.Dev Activate or migrate to Bango App store sales team Activate MNO 21
Slide 22: Accelerating activations
Accelerating activations • Momentum Increased during 2H2014 • June: Group-wide partnership with • August: Group partnership with • September: First live market with • October: Global partnership with • Technology deployed to accelerate MNO to App Store engagement – Bango Grid 22
Slide 23: Summary & Outlook
Summary & Outlook 2014 Increased market share and end-user spend, while All major app stores that The digital content market is maintaining a stable cost have offer direct carrier moving towards purchases base billing have now chosen to from app stores paid on work with Bango mobile operator bills 2
Slide 24: About Bango
About Bango Bango customers include: • Founded in 1999 to enable effective collection of mobile payments • Chosen by the worlds leading app stores and mobile operators • Bango technology and industry Over 140 operator relationships include: relationships enable a superior user experience that increa