Bango Plc · LSE:BGO
Bango — FY2010 Earnings Presentation
15 slides from Bango's earnings presentation, Jun 16, 2010
Slide 1: Bango Preliminary results for 12 months to 31st March 2010
Bango Preliminary results for 12 months to 31st March 2010 16th June 2010 www.bangoinvestor.com - Highlights - Financials - Operations - Market Opportunity - Outlook June 9th 2009 1
Slide 2: FY2010 Financial Highlights
FY2010 Financial Highlights • Growth in revenues and profits – Revenues increased by 48% to £26.1m (FY2009: £17.6m) – Maiden profit after tax of £10k (FY2009: loss of £478k) – Cash balance of £2.74m as at 31 March 2010 (£0.83m at March 31 2009) – January 2010 fund raising of £2.994m net from the iss
Slide 3: FY2010 Operational Highlights
FY2010 Operational Highlights • Key new partner and customer wins – Mobile Network Operators: T-Mobile USA, Virgin Mobile USA – Content Providers: RIM, Fox Mobile, Turner Broadcasting, Yahoo • Product development – Bango Payments: one click with Wi-Fi, Mobile Applications (App) functionality – New e
Slide 4: Bango's market position
Bango’s market position • Bango has a significant competitive advantage – Bango’s system is unique and benefits from years of development – More than 70 million user profiles improve usability – The Company is an established leader in the market – Bango technology is embedded in Mobile Network Opera
Slide 5: Market status
Market status • The worldwide mobile content market is expected to surpass $64 billion by 2012, up from $20 billion in 2007 (Juniper Research) • Mobile web browsing on an increasing number of smart phones will drive demand • The iPhone is developing a mass market appreciation for downloadable conten
Slide 6: FY2010: Revenue by segment
FY2010: Revenue by segment 16 FY 10 FY 09 End user activity 14 £m £m Content Provider Fees End user activity 24.69 15.91 12 % of total 94% 90% 10 £m 8 Content provider fees 1.44 1.69 6 % of total 6% 10% 4 Total revenue 26.13 17.61 2 0 H1 FY07 H2 FY07 H1FY08 H2FY08 H1FY09 H2FY09 H1FY10 H2FY10 • Overa
Slide 7: FY2010: Gross profit
FY2010: Gross profit 1,000 Content provider fees 900 End user activity FY 10 FY 09 £m £m 800 End user activity 1.23 1.02 700 % of total 46% 38% 600 £000's 500 400 Content provider fees 1.44 1.64 300 % of total 54% 62% 200 100 Total gross profit 2.67 2.66 0 H1 FY07 H2 FY07 H1FY08 H2FY08 H1FY09 H2FY09
Slide 8: FY2010: Operating Expenses
FY2010: Operating Expenses P&L operating expenses • P&L opex down 15% YoY to (exc dep'n & sbp) £2.68m 3.0 2.5 • P&L opex expected to remain at 2.0 GBP present levels in FY11 1.5 1.0 • Capitalised £0.88m (25% of total opex) for: 0.5 – 100x traffic processing 0.0 H1 FY07 H2 FY07 H1FY08 H2FY08 H1FY09 H
Slide 9: FY2010: P&L
FY2010: P&L • Maiden profit after tax of £10k Revenue, gross profit, costs & operating loss FY10 FY09 Revenue 14 Total admin expenses exc capitalized R&D £m £m 13 Gross profit Revenue 26.13 17.61 Operating profit/(loss) 12 Cost of Sales (23.46) (14,95) 11 Gross profit 2.67 2.66 10 Total administrati
Slide 10: FY2010: Cashflow
FY2010: Cashflow FY10 FY09 £m £m Net cash used by operating activities (0.05) (0.38) Cash flows from/ (used by) investing activities Purchase of property, plant and equipment (0.16) (0.06) Addition to intangible assets (0.88) (0.35) Interest received / payable (0.01) 0.01 Net cash from/(used by) inv
Slide 11: Operations: Grow Transaction Volumes
Operations: Grow Transaction Volumes • Grow transactions from current large customers – Continuing the migration of transactions in our biggest customers over from SMS aggregators to Bango Payment • Continue to add new larger customers – Fox Mobile, Yahoo, Cellfish, Turner Broadcasting – Go-spoken,
Slide 12: Margin from payment transactions
Margin from payment transactions • Margin on end user spend stable at 5% (H1 FY10 5.3%, H2 FY10 4.7%) • 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 d
Slide 13: Content provider sign-ups
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 per month in Mar09 to £19K per month
Slide 14: Jan 2010: Fundraising
Jan 2010: Fundraising • Rationale: – Strengthen balance sheet – improve customer perception – Payment acceleration: margin enhancement transaction growth • Funds raised: – £3 million (net of expenses) at 43p/share • Usage: – Starting to advance funds to key Content Providers in FY 2011 14
Slide 15: FY2011 – outlook & opportunities
FY2011 – outlook & opportunities • Increasing revenues, maiden profits, stable opex and improving quality of earnings • Unique competitive positioning in a growing market • Increasing transaction volumes & revenue growth opportunities, through existing customers, new customers and new mobile operato