Bango Plc · LSE:BGO
Bango — H1 FY2009 Earnings Presentation
19 slides from Bango's earnings presentation, Nov 25, 2008
Slide 1: Bango Interims for 6 months to 30th September 2008
Bango Interims for 6 months to 30th September 2008 © 2008 Bango plc www.bango.com November 25th 2008 1
Slide 2: Bango focus: Enabling mobile web
Bango focus: Enabling mobile web Traditional: On-portal Commercial relationship with each operator Direct-to-mobile You promote and engage directly with the whole market Hundreds of millions of users 2
Slide 3: H1 FY2009 Operational Highlights
H1 FY2009 Operational Highlights • Strong growth in revenue from USA & Canada • Large content provider customers increasing use of platform • UK summer slowdown was compounded by mobile search providers’ teething problems in the UK • Successful Analytics launch: - Over 350 active Analytics webmaster
Slide 4: End user spend
End user spend • Strong growth in USA as that market starts to take off • Problems arising from changes to UK operator search advertising added to summer “lull” during H1 • Expect operators to resolve these problems in next six months 4
Slide 5: H1 FY2009 Financial Highlights
H1 FY2009 Financial Highlights H1 FY09 H2 FY08 H1 FY08 £’000 £’000 £’000 Net loss 592 754 1,081 Operating expenses 1,855 2,147 2,521 Gross revenue 6,746 6,923 6,836 Gross margin 18.6% 19.8% 20.4% • Reduced loss driven by reduction in opex and maintained revenue • Close to breakeven at half year - Se
Slide 6: Revenue by segment
Revenue by segment • Revenue broadly stable, end-user spend proportion increasing H1 FY09 H2 FY08 H1 FY08 £’000 £’000 £’000 End user activity 5,915 5,935 5,789 % of total 88% 86% 85% Content provider fees 831 921 1,047 % of total 12% 13% 15% Services to MNOs & other revenue 0 67 0 Total revenue 6,74
Slide 7: Revenue by geography
Revenue by geography Revenue (£'000) H1 FY09 H2 FY08 H1FY08 H1 FY09 End Content user provider • UK is main region. United Kingdom 3,785 5,739 4,942 3,354 431 (i) seasonality % of total 56% 83% 72% 57% 52% (ii) teething issues USA & Canada 2,363 532 909 2,134 229 for search providers % of total 35% 8
Slide 8: Gross margin
Gross margin Gross margin H1 H2 H1 FY09 FY08 FY08 £’000 £’000 £’000 End user activity 466 435 581 % of total 37% 32% 42% Content provider fees 789 905 816 % of total 63% 66% 58% Other (1) 0 28 0 _____ _____ _____ Total margin 1,255 1,368 1,397 Margin % End user activity 7.9% 7.3% 10.0% Content provi
Slide 9: Gross Margins
Gross Margins CP Fees Margin • % margin from end user 2.0 spending stable, increasing End User Spend Margin 1.8 part of revenue mix. Objective is to provide best 1.6 Other Margin payout rates to CP’s 1.4 • Month-on-month package fee 1.2 GBP (Millions) revenue now rising after UK 1.0 search teething
Slide 10: Operating Expenses
Operating Expenses Sales & mktg 3.0 • Expenses down 11% vs 2H R&D, Support, Fin&Admin FY08 and 24% down 2.5 Depreciation vs 1H FY08 • Expected to remain at present levels for rest of year 2.0 GBP (Millions) and continue to be tightly managed 1.5 • System costs can handle 10X current transaction 1.0
Slide 11: Opex and P&L
Opex and P&L H1 FY09 H2 FY08 H1 FY08 • October 08 Opex £'000 £'000 £'000 Operating expenses 1,708 1,927 2,262 less than £20K Depreciation 104 109 112 EBITDA loss 1,812 2,036 2,374 Share based payments 43 111 147 1,855 2,147 2,521 Income statement Revenue 6,746 6,923 6,836 Cost of sales 5,491 5,554 5
Slide 12: Nearing Profitability
Nearing Profitability CP Fees Margin 3.0 End User Spend Margin Other Margin Depreciation 2.5 Sales & mktg R&D, Support, Fin&Admin 2.0 GBP (Millions) 1.5 1.0 0.5 0.0 H1 FY07 H2 FY07 H1FY08 H2FY08 H1FY09 3x(Sep+Oct) 12
Slide 13: Cashflow & balance sheet
Cashflow & balance sheet H1 FY09 H2 FY08 H1 FY08 Cashflow Net cash used by operations (1,043) (706) (167) • £400k extra cash used in operations due to Cash from investing activities (8) 13 32 shorter “cash hold” time in (1,051) (693) (135) USA vs UK Cash from financing activities 451 0 23 • Extra wo
Slide 14: Bango Payments
Bango Payments • Steady stream of product enhancements • Credit card problems in USA resolved in May 2008 • Added Virgin Mobile to Sprint and AT&T in USA Best transaction network 2008 • Major overhaul of self-care systems, live in September 08 • Several major US content aggregators signed late summe
Slide 15: Bango Analytics Progress
Bango Analytics Progress • Bango Analytics Launched Feb/March 2008 • Now more than 350 mobile websites integrated • Partnerships: Decktrade, Admoda, MetaTXT, Adversitement, etc. • 3.0 release in September – Unique Visitor data • Developing new 4.0 release in Jan/Feb 09 • Favourable reviews and indus
Slide 16: Summary
Summary • Focus on driving to profitability and cash generation • Market opportunity expanding • Google, Yahoo and other internet companies driving the opening up of the mobile web • Large customer sign ups with lower cost of sales • Analytics product is very complementary and starting to gain reven
Slide 17: Supplementary
Supplementary www.bango.com 17
Slide 18: Bango has key role in enabling mobile web growth
Bango has key role in enabling mobile web growth Share of internet traffic through MNO’s Internet / Web to mobile devices is growing fast: - Mobile broadband becoming reliable and cheap Mobile Web Traditional Web - Mobile devices getting more capable connected connected by - Already 1 billion mobile
Slide 19: Payment Choices on Mobile Web
Payment Choices on Mobile Web MNO billing Non-MNO billing + All age ranges + Familiar to PC users + Broad reach + Good cash-flow and low costs + Ideal for small amounts + Relatively hassle free + Single click spending + 95% Credit Card, new entrants (PayPal etc.) Ringtones Sideloading (iTunes) Music