Bango Plc · LSE:BGO
Bango — FY2011 Earnings Presentation
22 slides from Bango's earnings presentation, Jun 9, 2011
Slide 1: Bango Preliminary results for 12 months to 31st March 2011
Bango Preliminary results for 12 months to 31st March 2011 June 2011 www.bangoinvestor.com - Highlights - Business Progress - Financials - Outlook - Supplementary June 9th 2009 1
Slide 2: About Bango
About Bango Bango customers include: – Founded in 1999 to enable effective collection of payments from mobile device users – Focussed on collection of payments for content and services targeted at smartphone users – Bango technology, relationships and user data enable the highest billing conversion
Slide 3: Bango benefits for content providers
Bango benefits for content providers User Histories: Accurate Analytics: Dynamic generation and Revenues & Refunds, Campaigns,, history / data on 100M+ users Insight, Effectiveness Higher Sales Lower Costs Better Information Collect payments from mobile devices: Single technical and commercial integ
Slide 4: Smartphone Market Dynamics
Smartphone Market Dynamics US Mobile Content Market Mobile Apps Market 4.0 $3.5 35.0 $32.0 $3.1 30.0 Figures in USD billions $26.4 Figures in USD billions 3.0 $2.5 25.0 $21.7 $2.0 20.0 $17.9 2.0 $1.5 $14.7 $1.1 15.0 $12.1 $10.0 1.0 10.0 5.0 0.0 0.0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2
Slide 5: App Stores becoming strategic
App Stores becoming strategic LG launched China Mobile its App Store Verizon Mobile Web launched its App in July, 2009 BlackBerry Games and App Store in Aug 2009 App World 2.0 launched Store launched in June 2010 April, 2009 Sony Ericsson’s Orange App Store • Launched March 2011 launched
Slide 6: Bango is a powerful tool for App Stores
Bango is a powerful tool for App Stores • Technology to enable Mobile Operator billing (enables greater reach than credit cards alone) • Interfaces (API’s) and Analytics for Developers • Automated “back-office” processes • Extensive analysis and anti-fraud tools for the App Store operator • Clearing
Slide 7: App Store business model
App Store business model Standard Bango Model: Small share of end user revenues Monthly operating fee Additional capabilities: Special mobile operator integration work (accelerate new ones or dedicated connections) Customisation to meet Customer needs 7
Slide 8: BlackBerry App World
BlackBerry App World Powerful Leader: BlackBerry is highest volume US smartphone* 55% market share in North America* >161 mobile operator partners* >104m installed base* App World downloaded by >35m users >1.5m app downloads per day Available in over 70 countries* Number of transactions flowing thro
Slide 9: Bango focus on this high value opportunity
Bango focus on this high value opportunity • Created team to focus on BlackBerry App World - ensure success of BlackBerry App World - in-depth technical and developer support - ability to integrate ~100 new carriers in 2011 - ensure security, privacy, scalability • Strengthen Payment and Analytics “
Slide 10: Bango Analytics growth
Bango Analytics growth – March 2011 volume was 4.3 times higher than March 2010 – Revenues driven by customer sign-ups and transaction volumes – In App analytics developed and launched in October 2010 – Turner, Yahoo, Telefonica and others – Highly relevant to App Stores as they start to mature Jul-
Slide 11: Product development
Product development • Operational Scalability - Handle 100+ mobile operator billing integrations at low operational cost - Improvements to Risk Management and Refund Processing • Smartphone In-Application Technology - Identification and authentication of Android and other devices - Open source appli
Slide 12: FY11: Revenue by type
FY11: Revenue by type FY11 FY10 14 End user activity £m £m End user Content provider fees 12 +others activity 17.46 24.69 % of total 90% 94% 10 Content provider fees 1.86 1.44 GBP (million) % of total 10% 6% 8 6 Total revenue 19.32 26.13 4 • Increased High Margin Revenues • Decrease in end user acti
Slide 13: FY11: Gross Profit
FY11 : Gross Profit 1.6 FY11 FY10 End user activity £m £m Content provider fees 1.4 End user activity 0.64 1.23 % of total 26% 46% 1.2 Content provider fees 1.85 1.44 1.0 GBP (million) % of total 74% 54% 0.8 Total gross profit 2.49 2.67 0.6 • High margin earnings 0.4 improved significantly 0.2 • Sma
Slide 14: FY11: Operating Expenses
FY11 : Operating Expenses 2.0 • Opex includes spend on 1.8 RIM task-force / start-up 1.6 1.4 • P&L opex expected to remain GBP (million) at present levels in FY2012 1.2 1.0 • Capitalized £1.03m for: 0.8 – Operational Scalability 0.6 – In-App Technology 0.4 – Emerging market project 0.2 0.0 9 9 0 0 1
Slide 15: FY11: P&L
H1FY11 : P&L FY11 FY10 Revenue £m £m Total admin expenses ex Invest Gross profit Operating profit/(loss) Revenue 19.32 26.13 14 Cost of Sales (16.83) (23.47) Gross profit 2.49 2.66 12 10 Operating expenses 2.89 2.67 Dep’n and amortisation 0.32 0.17 GBP (million) 8 Share based payments 0.12 0.06 6 In
Slide 16: FY11: Cashflow
H1FY11 : Cashflow FY11 FY10 £m £m Net cash used by operating activities (1.16) (0.03) Cash flows from/ (used by) investing activities Purchase of property, plant and equipment (0.08) (0.16) Addition to intangible assets (1.03) (0.88) Net cash from/(used by) investing activities (1.11) (1.04) Proceed
Slide 17: FY2011 – Outlook & opportunities
FY2011 – Outlook & opportunities • Bango sees a big and exciting pipeline of prospective business ahead • Project to provide carrier billing for BlackBerry App World presents a significant business opportunity • App Stores promise to be new and increasingly important channels, and success with Black
Slide 18: Supplementary Slides
Supplementary Slides 18
Slide 19: Optimum Web or App user experience
Optimum Web or App user experience User browses Bango collects Confirmation and site the payment download App running In-app “Pay Confirmation on device now” button of payment 19
Slide 20: Components of Bango Platform
Components of Bango Platform BILLING COLLECTION OUTPAYMENT Identify / Locate Basics: Basics: - Reporting - Calculation - Reconciliation - Reconciliation BillRank™ - Refunds - Refunds - Chargebacks - Chargebacks Age Verification - Missing items - Fees / fines User RiskHistories: / Fraud - Incentives
Slide 21: Joined up App Analytics
Joined up App Analytics Link apps with marketing Link app and website use Measure goals Goals Websites In-app Measure campaigns campaigns Marketing campaigns Payments Measure billing / User 523673 sales information Consumers Downloads Apps Measure errors App Store Measure app usage Understand Track
Slide 22: Business Model: Fee + Percent of Transaction
Business Model: Fee + Percent of Transaction Revenue flow Biller keeps c. 20% - 40% Bango Bango collects Bango processes sends content payments earnings partner c. 60% - 80% Bango share based on Bango keeps biller type, transaction c. 2% - 5% size and volumes Settlement Month 1 Month 2 Month 3 Month