Bango plc · LSE:BGO
Bango — H1 2015 Earnings Presentation
19 slides from Bango's earnings presentation, Sep 15, 2015
Slide 1: 1H2015 Interim results
1h2015 Interim results Highlights • Presentation topic #1 Financial review • Presentation topic #2 • Presentation Business topic update outlook • Presentation topic #4 Ray Anderson CEO Gerry Tucker CFO Anil Malhotra CMO 15 September 2015 © 2014 Bango plc bangoinvestor.com www.bango.com © 2015 Ban
Slide 2: Key financial highlights
Key financial highlights • End user spend growth accelerating as expected – 1h2015 up 72% vs 1h2014 to £18.45m – Despite significant strengthening of sterling (end user spend up 82% in local currencies) • Margin on end user spend 2.1% - within 2-5% range – Gross profit on end user spend increased 36
Slide 3: End user spend growth
End user spend growth 30.0 • Growth accelerating as expected • 1st half end user spend 25.0 grew to £18.45m – Growth of activity from operators active at end mid September weekly spend x26 End User Spend £m 20.0 of 2014 – Added growth from new 15.0 activations during 1st half 10.0 • Sept 2015 annual
Slide 4: End user spend drivers
End user spend drivers 1h2015 • Majority of growth from established activations • Success of Bango technology and Bango Boost product in driving growth • Wave of significant new activations late in the period • New activations already driving end user spend 2h2015 outlook • Further growth – as expec
Slide 5: Interim financial review 2015
Interim financial review 2015 • Presentation Gerry Tucker, topic CFO#1 • Presentation topic #2 • Presentation topic #3 • Presentation topic #4 © 2014 Bango plc www.bango.com 5
Slide 6: Bango operates as agency or principal
Bango operates as agency or principal • Bango agility enables app stores to select either agency or principal model Turnover End user spend £1.7m £18.5m Gross profit £1.5m End User Turnover £0.6m £0.4m end user £1.4m as Spend margin Principal 2.1% End user spend margin £0.2m £0.2m Platform fees Plat
Slide 7: Analysis of 1H2015 financials
Analysis of 1h2015 financials 1h2015 1h2014 FY2014 Unaudited Unaudited Audited • End user spend £m £m £m growth rate accelerating to End user spend 18.45 10.74 25.17 £18.4m (1h2014: £10.7m) Sources of Margin End user 0.38 0.28 0.60 • Margin on end user spend Platform fees 0.23 0.44 0.73 2.1% (1h2014
Slide 8: FY2015 annualized cost base
FY2015 annualized cost base £5 • 1h2015 cost base stable as £0.8 £0.8 planned £4 £1 £1 • General efficiencies and automation lowering cost of datacentres and personnel £3 Other to deliver services GBP in millions £1.2 £1.4 Technology development Sales & marketing • Infrastructure successfully £2 tes
Slide 9: Balance sheet 1H2015
Balance sheet 1h2015 30 June 2015 30 June 2014 • Reductions in trade receivables £ £ and payables due to increased Non-current assets 4,008,712 4,594,069 Trade and other receivables 1,088,952 1,599,423 agency business Research and development tax credits 100,000 313,904 Cash and cash equivalents 4,0
Slide 10: 1H2015 cash flow
1h2015 cash flow 30 June 2015 30 June 2014 £ £ • Cash invested: Net cash used by operating activities (1,957,538) (1,723,085) Net cash generated used by investing activities (483,953) (1,105,556) – Secondary data centre with additional Net cash generated from financing activities 6,701 334,861 testi
Slide 11: 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 11
Slide 12: #1 for app store carrier billing
#1 for app store carrier billing 43% 15% 42% Total app store carrier billing activations Source: Progressive Research September 2015 12
Slide 13: Bango Grid for app stores
Bango Grid for app stores bango grid . Filter options 4mobie operate: Senea a as optus A Bel | ORocerRs = TELUS Oe » Search 5 Sort order Optus Telstra A Zain Bell Rogers Telus Virgin Mobile usa auswata ‘usta Bahan canaca canaoa canada canada - poweey poweey powoes vowoes powoe Kk RRR KKK KKK KK ~ In
Slide 14: Platform effect case study
Platform effect case study • Oct 2014: du, one of the largest UAE operators integrated into the Bango Payment Platform • Jun 2015: carrier billing launched with 5 app stores 14
Slide 15: Initiatives with active billing routes
Initiatives with active billing routes Bango 24/7 & Bango Care Dashboard Bango Platform Monitoring and Satisfaction and Bango Boost Measurement risk management Revenue optimization Bango Grid Bango Promote Launch Customer management + + growth and and acceleration engagement Revenue Customers _ Impl
Slide 16: 2015 end user spend outlook
2015 end user spend outlook • Model predicted end user spend from Dec 14 activations will P grow approx 100% by Dec 2015 Early Sep 15 EUS On track showing on track S • Additional end user spend from: S – >40 scheduled activations (+15 extra since Jan 15) P – >100 more activations in pipeline – Amazo
Slide 17: General outlook: 2H2015 and 2016
General outlook: 2h2015 and 2016 • Material growth of Microsoft, Samsung and Amazon - positive contribution to end user spend margin - diversification beyond Google and BlackBerry • Proportion of agency likely to rise: higher gross margins • End user spend margin similar - higher growth of large act
Slide 18: Summary
Summary • On track with end user spend growth Maintaining initiatives to increase activation EUS and supporting initial growth of new activations • Launching new activations in emerging markets establishing leading market position in these key geographies where DCB expected to be high growth • Manag
Slide 19: The Bango pedigree
The Bango pedigree Powering the major app stores: • Number 1 for app store carrier billing • Founded in 1999 to enable effective collection of mobile payments iOS & Android • Chosen by the worlds leading app stores and mobile operators Over 140 mobile operator relationships: • Bango technology deliv