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BGO Bango Plc

141.00
0.00 (0.00%)
21 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Bango Plc LSE:BGO London Ordinary Share GB00B0BRN552 ORD 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 141.00 137.00 145.00 141.00 141.00 141.00 17,973 07:46:18
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Radiotelephone Communication 46.1M -8.83M -0.1149 -12.27 108.3M
Bango Plc is listed in the Radiotelephone Communication sector of the London Stock Exchange with ticker BGO. The last closing price for Bango was 141p. Over the last year, Bango shares have traded in a share price range of 95.60p to 210.00p.

Bango currently has 76,808,193 shares in issue. The market capitalisation of Bango is £108.30 million. Bango has a price to earnings ratio (PE ratio) of -12.27.

Bango Share Discussion Threads

Showing 11201 to 11225 of 11450 messages
Chat Pages: 458  457  456  455  454  453  452  451  450  449  448  447  Older
DateSubjectAuthorDiscuss
10/4/2024
08:17
Once set up they both operate at over 90% Gross margin. So only costs are updates to software and new products which going forward will only apply to DVM since DCB will only require a little investment.
Appart from admin costs the main effort is on marketing and advertising.
The beauty of the model is that costs are fixed and with a 95% GM from 2025 all additional sales mostly drop down to profit. Hence if they can build DVM at about 40% growth per annum and DCB at 5% they get to 100m turnover in 5 years and thus 50m net profit.

amt
10/4/2024
08:06
thanks amt. So they'll be spending a lot of capex on it but has low opex
vespasianthesubugest
09/4/2024
22:12
DVM investing heavily.
DCB not much investment required

amt
09/4/2024
20:15
So which is it; a) they're investing loads of cash into DVM or b) DVM needs little investment?
vespasianthesubugest
09/4/2024
17:17
I'd take Stocko info with a degree of caution. Algorithms are fine to a point, but!
hastings
09/4/2024
17:01
kaos3 - i have just taken my figures from Stockopedia. It may be that these figures are adjusted or perhaps might be out of date. When i loooked i had it in my head they had updated figures but cross checking i am not so convinced as the 2023 revenue figures dont match the accounts figures released - i have also noticed they have 2 brokers flagged so it seems like that data will need updating.
rmillaree
09/4/2024
16:50
I completely agree, DCB is now a huge cash cow business that will grow organically with little required investment in either sales or R&D.

DVM is an amazing business where Bango have already captured a huge part of the market and are becoming the dominant provider. The network effect here is strong, as many streamers/providers will not want to work with multiple firms, so are already just directing telco clients to Bango. The income potential is huge, just look at the big US telco contract where the 'lowest' tier is $2m pa, once they get people using it at scale they will climb to higher tiers.

Audiens is the dud of the bunch and has been for a long while. It was purchased for the technology, but never generated any significant revenue itself and should have been shut a long time ago. At least it's been done now.

6gr
09/4/2024
16:36
Thanks Martin, nice summary.
jasperlachat
09/4/2024
16:21
Egrd1 I would say DCB has been a huge success. 32 million turnover with 95% margin on the Bango platform with about 10 billion EUS access to hundreds of millions of users and supporting the biggest telecoms companies in the world. 5% growth with virtually no further investment. Now out of that DVM already at 10 million per annum after 2 years.
Audiens yes, a disappointment but still might have potential further down the road but DVM is where the focus is now.
Businesses need to be dynamic and flexible and seize the opportunities.
Boku has similar EUS but is now focusing on Digital wallets and their business has taken off.

amt
09/4/2024
15:58
what would be their tax credit ... after all those years of loses/developments

why the projected diff profit vs after tax profit

cash is still king

sorry to be ignorant

kaos3
09/4/2024
15:14
Ref "Where is R&D money invested?"

Pages 15,16,17 provide a lot of information on that topic.

weblinkman
09/4/2024
13:36
Cheers Hastings most approciated you taking the time to q

Thanks for that - onto a more positive note if they are only expecting just over 12% sales growth this year and have booked 20% growth in h1 - i would agree there ios posibility that the sales forecasts could perhaps be conservative. Whats really what we want to come in on costs and get some sort of beat on revenue and then everyone is happy. So lest hope thye have learnt their lesson. It shouldnt take too long for numbers to firm up ref curent year revenue expectations - so perhaps there is hope for good news on next trading update.

On the flip side if they only expect revenue growth of 12% and they booked 20% q1 that would suggest that growth is slowing down - at some stage though growth rates had to mederate but that would be a material slowdown below 12% growth to end up there come year end.

So hopefully cause for optimism here ref sales if you take glass half full plus viewpoint.

I will remain neutral and simply be guided what broker forecasts are for now.

ref the halving of brokers from 2 to 1 straight after the fact they have had to eat their words ref expectations - for £90 mill plus market cap growing strongly - seems an odd choice to sack broker to save a bit of cash - one would expect the hard work with brokers in onboarding them in the fisrt place ? is it normal to reduce brokers wehn everything is growing nicely?

rmillaree
09/4/2024
13:32
Cheers Hastings most approciated you taking the time to q

Thanks for that - onto a more positive note if they are only expecting just over 12% sales growth this year and have booked 20% growth in h1 - i would agree there ios posibility that the sales forecasts could perhaps be conservative. Whats really what we want to come in on costs and get some sort of beat on revenue and then everyone is happy. So lest hope thye have learnt their lesson. It shouldnt take too long for numbers to firm up ref curent year revenue expectations - so perhaps there is ho
pe for good news on next trading update.

On the flip side if they only expect revenue growth of 12% and they booked 20% q1 that would suggest that growth is slowing down - at some stage though growth rates had to mederate but that would be a material slowdown eblow 12% growth to end up there come year end.

So hopefully cause for optimism here ref sales if you take glass half full plus here.

I will remain neutral and simply be guided what broker forecasts are for now.

rmillaree
09/4/2024
13:30
6gr "They are investing much more cash into the DVM business to grow"
What specifically are they investing all this cash in? The DVM is a developed system, what they are doing is looking to increase customers... They already have 3 of the major 5 US Telcos on board, along with many other major users...
What worries me is that Bango seem to buy business, but only ever break even on the return from that business, before pretty much exhausting the low hanging fruit and then having to pivot to the next big thing.
DCB
Audiens
and now the DVM?

egrid1
09/4/2024
13:18
"rmillaree- I appreciate your concerns, but it's notable that the broker yesterday did re-iterate the target financials for '24 as:

Revenue $53.5m
Adjusted Ebitda $16.8m
PBT $5.7"

thoss numbers are consistent with my expectation of post tax profit of $3.5 mill and capital investment of $13.5 mill

rmillaree
09/4/2024
12:59
Hastings Thanks for the write up which is good confirmation of consistent reporting of what has been going on.

It confirms to me that the 2024 bald numbers will not be exciting but there will be strong cash flow. Its only in 2025 when all the cost savings come through that I believe we will see transformational numbers and that will propel the share price to multiples of where it is now.
Further ahead the levels to which Bango can grow will depend on DVM which could get very exciting indeed.

amt
09/4/2024
12:50
egrid1 - They are investing much more cash into the DVM business to grow, which is then capitalised and amortised over time in the P&L. So when you accelerate investment the cashflow is usually worse than the P&L.

Cashflow is where you make the choice on what to spend, P&L is merely an accounting consequence.

6gr
09/4/2024
12:47
Hastings - thanks for the write-up.

rmillaree- I appreciate your concerns, but it's notable that the broker yesterday did re-iterate the target financials for '24 as:

Revenue $53.5m
Adjusted Ebitda $16.8m
PBT $5.7

I also believe that both the management and brokers are now intentionally being conservative after the debacle in January.

6gr
09/4/2024
12:44
Hastings, thank you for your write up.
I noted:
"Indeed, the CFO said that they feel they are in a good place now on the cash front where they have an as yet unused Barclays facility which is very much there as a buffer, but which might be tapped into at the end of the year."
Have I missed something, were we not being told to expect profits for this year, and if so, why do they not flow through to positive cash flow? Why might it be that they are "tapping" into another as yet unused credit card?

egrid1
09/4/2024
12:41
You wrote "Note the elephant in the room her is the trade and other payables at over $30 mill the total massively exceeds receivables"

You don't state how much of that is trade payables, Its only 10m so trade receivables are only a couple of million lower. You are jumping to conclusions based on superficial research.

amt
09/4/2024
12:04
Write up for interest. Not as in depth as when I chatted with Anil, but hopefully something that is useful. https://martinflitton1.wixsite.com/privatepunter/post/stand-and-deliver-09-04-24
hastings
09/4/2024
12:03
The good part here is that they don't need any cash, either to survive or to pursue their strategy. At circa $50m of revenue and with the integration complete the level of investment/costs and therefore profits are almost a choice at this point ie they can easily turn down the expenses (at the expense of growth) if they needed to.


errrr perhaps but perhaps not - i have seen it posted here that develpment spend this ytear is expected to drop by $4 million compared to last year. Last year they capitalised over $17.5 mill od develkopmnet spend - does that not mean that they still have $13.5 mill of developmnet spend this year that wont be reflected in the profit numbers other than pro rata reduction - for company making $3.5 mil bottom line profit and with debt that is materially high level of "expected spend" - and thats the stuff that they can capitalise. My rough calcs based on lkast years depn/amortisation charge ($9 mill) - suggest the cashflow could be tight - i am not saying cashflow is a problem but i wouldnt say they have much safety net here for unforseen events. Ok they can pimp up cahsflow if needs.

Note the elephant in the room her is the trade and other payables at over $30 mill the total massively exceeds receivables - i suspect they have already been pimping out cashflow anyway. They dont want suppliers getting over twitchy ref providing credit.

I may nolt be as negative as some ref cashflow prsopects but imho i would say they are possibly in marginal cashflow position here ref ability to invest quickly to grow business as they clearly need to do with the planned capital spend.

my calcs i admit are quickly compiled and sketchy - again its noce nice when we get decvent broker notes confirming the expectations as that avoids us having to make up assumptions

rmillaree
09/4/2024
11:02
6gr, although H1 numbers will help a bit we won't get a clear picture until 2025 in the financials
amt
09/4/2024
10:42
I think we'll just have to wait for the H1 results to see a clearer picture on costs, though they should decline from lower Capex investment and from the cost-savings.

I have no doubt that revenues will just keep climbing on both DCB and DVM. DCB is growing at 5% organically and DVM grew at 37% organically alone and new customers will add to that as they come on stream.

It's just annoying to be sat here nervously looking at the share price, down about 40% from my average entry. The good part here is that they don't need any cash, either to survive or to pursue their strategy. At circa $50m of revenue and with the integration complete the level of investment/costs and therefore profits are almost a choice at this point ie they can easily turn down the expenses (at the expense of growth) if they needed to.

The fact that the board own 11% of the company means they are hopefully unlikely to sell cheaply, as they genuinely believe in a £1bn valuation in time (as do I).

6gr
09/4/2024
10:37
It's not easy forcasting and one blunder, although a bad one, i think over the years their forecasts have been quite good though. Not many misses over the years from memory
amt
Chat Pages: 458  457  456  455  454  453  452  451  450  449  448  447  Older

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