Bango Plc · LSE:BGO
Bango — FY2007 Earnings Presentation
21 slides from Bango's earnings presentation, June 2007
Slide 1: Preliminary Results for 12 months to 31st March 2007
Preliminary Results for 12 months to 31st March 2007 © 2007 Bango plc www.bango.com June 2007 1
Slide 2: Contents
Contents • Bango: Quick & easy mobile web • Highlights • Revenue & Margin by Business Segment • Revenue by Geography • Sales to Content Providers • End user spending • Operating Expenses, P&L • Cash • Product Development • Market trends • Summary • Supplementary Slides 2
Slide 3: Bango: Quick & easy mobile web
Bango: Quick & easy mobile web +3,500 others Traffic, Information, Payment Mobile web 1,000 million mobile internet browsers 3
Slide 4: FYE Mar 07 Highlights (vs 06)
FYE Mar 07 Highlights (vs 06) • Revenues up 38% to £10.43m (£7.53m) • Content provider revenues up 53% to £1.54m (£1.00m) • Gross profit up 12% to £2.47m (£2.19m) • New customer wins MTV, Capcom, Daily Telegraph, FT.com, Agent Provocateur, Jamba, Flycell, Betfred, Yamaha Music, EA mobile, Rascal Fla
Slide 5: Revenue & margin by segment
Revenue & margin by segment Revenue £000's 2007 2006 H2 2007 H1 2007 H2 2006 H1 2006 Content access fees 8,860 6,470 4,968 3,892 3,686 2,784 % increase on previous period 37% 28% 6% 32% Content provider fees 1,536 1,003 837 699 611 392 % increase on previous period 53% 20% 14% 56% Services to MNOs 3
Slide 6: Revenue by geography
Revenue by geography FYE March 31st 2007 Content Content FYE FYE access provider Services to Revenue £000's Mar2007 Mar2006 fees fees MNOs United Kingdom 8,473 6,755 7,555 906 12 81% 90% 85% 59% Rest of EU 741 324 439 282 20 7% 4% 5% 18% USA & Canada 934 312 686 248 0 9% 4% 8% 16% Rest of World 280
Slide 7: Sales to Content Providers
Sales to Content Providers • Direct sales - improving productivity per sales head • Partner program (Integrated & sold by Bango partner) - starting to generate sales • Web sign-up at Bango.com - ~1,000 “starters” activated March-May 2007 • Attrition / bad debt among small customers in US - early cus
Slide 8: End user spending: Thousands of Pounds per Week
Thousands of Pounds per Week 0 50 100 150 200 250 300 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 End user spending Dec-04 Mar-05 Jun-05 1H06 Sep-05 Dec-05 2H06 Mar-06 July/Aug 06 Jun-06 1H07 Sep-06 Dec-06 2H07 Mar-07 to FY07/08 Strong Start 8
Slide 9: Opex and P&L
Opex and P&L £'000's FYE 31 March 2007 2006 Q4 2007 Q3 2007 Q2 2007 Q1 2007 Operating expenses 5,341 3,670 1,229 1,363 1,517 1,232 Change in accounting estimate 0 0 0 115 (58) (57) re staff bonuses 5,341 3,670 1,229 1,478 1,459 1,175 Depreciation 187 76 56 57 40 34 5,528 3,746 1,285 1,535 1,499 1,20
Slide 10: Cash
Cash • £1.93m cash at 31st March 2007 • Cash burn reduced to around £100K/month by year end (from around £300K in mid 2006) • Drive growth in gross margin and opex control to move to cash positive trading in FY2008 • Significant capex spent on new equipment in 2006 should sustain 5-10X revenue growt
Slide 11: Cashflow & balance sheet
Cashflow & balance sheet FYE March 31st £000’s 2007 2006 Net cash flow from operating activities (2,821) (1,666) Cash flows from investing activities (218) (136) (3,039) (1,802) Cash flows from financing activities 118 6,334 Net (decrease)/increase in cash (2,921) 4,532 FYE March 31st £000’s 2007 20
Slide 12: Product development
Product development • New Bango.com deployed • Simplifies use and sale of Bango products and services • Reduced “learning curve” • Opened up “web services” access to Bango platform • Business partners can leverage the power of Bango from their own site • on-demand subscriptions and user information
Slide 13: Market Conditions
Market Conditions • Move to “open” continues • Move to “off-portal” continues • Slowing Factors: Improving technology • Handsets more connected Slow pace of MNO’s • Connections getting faster making changes • Data costs coming down Scams & Schemes • Music and video handsets damage confidence Bill-sh
Slide 14: Summary
Summary • Market opportunity remains large • Product and technology unique, proven, desirable and scalable • Increasing pace of customer sign ups • Reducing customer acquisition costs • Strategic relationship with Yahoo! • Transition to profit (cashflow positive) progressing well • Strong technology
Slide 15: Supplementary
bango Supplementary
Slide 16: Summary of Bango benefits
Summary of Bango benefits • Connects you to your market: Gives you revenue generating traffic immediately. Enables investment of your marketing $ with solid return Harness the power of Yahoo! and Google Leverage traditional print, radio, web, marketing Unique benefits - one time integration • Enable
Slide 17: Bango BillRank Technology
Bango maximizes revenue Your mobile website Factors: Operator Bango BillRankTM Technology Aggregators Operator Billing Alternates Premium SMS billing Direct connect to operator to expand coverage User Info. U/R/G rating Billing cost Min margin >13,000,000 user profiles Antifraud across Trusted statu
Slide 18: Example payment flows
Example payment flows Choose Pay Download Direct on-bill 1-click payment Currency and language auto conversion Credit/debit card Download You customize the look and feel PayPal 18
Slide 19: Growth Strategy
Growth Strategy • Leverage early global advantage: - Technology already deployed world-wide - Content Providers in over 30 countries - Millions of users in over 120 countries - Excellent reputation with Vodafone, Orange, Telefonica, Cingular, O2 - Multiple language capability • Focussed Geographical
Slide 20: Yahoo! agreement
Yahoo! agreement User selects search channel 1 Invest in search terms Analyze revenues 4 Measure Users • Yahoo gets more mobile CP’s 2 • Bango CP’s get more traffic response respond • Users get better results • CP’s get better analytics • CP’s monetize sales Users Sale made 3 select content 20
Slide 21: www.bango.com
www.pdan 3 Bango.com - Microsoft Internet Explorer o.com » Drive people to your site ¥ Harness the mobile web to drive your business forward . Use our promotional tools to drive traffic . Leverage mainstream print, TV, radio and web marketing . Harness the world’s leading search and advertising comp