Bango Share Discussion Threads

[chimers] 22/9/2017 12:48

You really must get the IC Online.............YOUR WAY BEHIND THE GAME if you dont


Todays IC Podcast HOT OF THE PRESS A FEW MINS AGO



Quote from ST "what I didn't mention in my article is that during my convo with the CEO they pointed out that they expect BGO to be in profits not within the next 6 months but in a few weeks time!!!"

[chimers] 22/9/2017 12:45

OK lads my next post is going to be the best heads up you ever get in your entire life ok!!

[chimers] 22/9/2017 12:23

Shows over for today folks , some prudent topslicing dragging it back.

Let it drift then lump in again for the next leg up.

May take a week or so or it may just keep rising.

Off to throw £1 coins at poor folk outside the benefits office.

Hey............you never seen a fight until you seen two pregnant chavs fighting over a Primark voucher!!

Lateroonies.

[lentjes] 22/9/2017 11:03

J77J

I can't see any of the big boys Amazon, Google etc buying us out as Bango would loose the independence which is what is attractive about the Bango Platform.

This will only go to one of the major payment processing companies and even then only with agreement from the likes of Amazon etc.

I'm would be happy if the Take Out takes another few years yet

[j777j] 22/9/2017 10:53

Global Amazon roll out and or Amazon buys Bango are in my thoughts going forward.

[chimers] 22/9/2017 10:40

WHOOOOOOOOOOOOOOOOOOOOOOOOOSH!!!!!!!!!!!!!!!

[chimers] 22/9/2017 10:40

Dontcha just love it when a plan comes together :)

Stand back and make some space this is gunna get a lot bigger!! (said the Bishop to the ....)

[chimers] 22/9/2017 10:06

It will be the classic path/trajectory of a well run well funded growth stock.

Probably destined to grow for the next 10 yrs in a row at least.

It will step up.

There will be lots of dips along the way.

But the trend will remain upwards towards £10.

Buy the dips.

Higher highs = lots more pies ...nom nom nom

This is what they call a "dripping roast"

[qs99] 22/9/2017 10:03

may touch Simon T's IC £3 initial target at this rate today! blimey...DYOR etc

[nimbo1] 22/9/2017 09:55

I am not buying more into this rise but am going to buy the dips on the way when it becomes apparent where they are!

[nimrod22] 22/9/2017 09:52

SP may touch may touch 290 today with a bit of luck, though it will drop back to take a breather if it does

[nimbo1] 22/9/2017 09:38

Some of these presentations are interesting. if the link doesn't work google 'slide share + bango'



'over 70% of app store spend comes from fewer than 20% of the customers' - all about looking after them! Which as the very good post about the big data above points out is what their offering is all about.

[gersemi] 22/9/2017 07:48

'10 times my estimate of 2020 net profits'...

Hold on, 2020 is over 2 years away ffs. How about focusing on 2017 or indeed 2018 net profits? Or maybe, let's focus on 2050 net profits?!!!

BGO is a great little company but it's illiquid and sometimes ST gets a tad carried away with and allows his imagination to run wild

[chimers] 22/9/2017 07:41

Hits the streets this morning.
If you subscribed you could have had the juice 3 days ago.
IC online, subscribe and become a know it all rather than a know it ...........LATER.

"Aim-traded Bango (BGO:248p), a provider of a state-of-the-art mobile payment platform that enables smartphone users to charge purchases made in app stores straight to their mobile phone account, produced an eye-catching set of first-half numbers this week.

The directors also reiterated guidance that the business will hit operating profitability on a monthly basis in the second half. Profits will accelerate sharply thereafter given the company’s high operating leverage: operating costs are stable at around £5.4m a year, and Bango has already invested over £30m in its payment platform and stress tested it to take transaction levels of around £5bn. This means that having hit an inflexion point then a high percentage of incremental fees earned from processing payment transactions will now drop straight down to the bottom line.

The exit run-rate of end-user spend (EUS) processed through its payment platform hit £300m at the end of June, up from £195m at the start of the year, and has since accelerated to over £400m at the end of August, or 42 per cent ahead of analyst Ian McInally’s forecast at house broker Cenkos Securities. This prompted him to raise his end-2017 and 2018 EUS forecasts by 8.8 per cent and 19 per cent, respectively, to £452m and £913m, but even those numbers could prove conservative given the strong drivers behind the ongoing growth.

For example, chief executive Ray Anderson told me during our results call that two Middle Eastern mobile operators who migrated their Google Play routes to Bango’s platform in the first half saw a 35 per cent increase in their EUS immediately, highlighting the benefits of the company’s big data product, Bango Boost, which enables more cost effective and targeted marketing programmes of a client’s content and services. This can only lead to further migration of established Google Play routes to the Bango Platform. Mr Anderson has identified “sources of migrations that can bring in billions of dollars of EUS”.

The groundbreaking direct carrier billing agreement (DCB) with Amazon Japan, which started in June, is also noteworthy. Firstly, it enables customers with a KDDI or NTT DOCOMO mobile phone account to pay for goods purchased from Amazon.co.jp by charging the cost of them to their mobile phone account. These two carriers account for three-quarters of the Japanese market, and have a combined 123m customers, so this is potentially a transformational deal for Bango. That’s because over half of all e-commerce transactions in Japan are currently completed by a mobile platform, reflecting low levels of credit card penetration, and highlighting the potential to tap into Amazon's e-commerce revenue of ¥999bn (£6.7bn) in 2016. It’s only reasonable to expect Amazon to enter into similar agreements with Bango in other territories if the Japanese arrangement works out.

Furthermore, following the announcement of the Amazon deal, other online international retailers who want to tap into the huge Japanese retail market have been in contact with Bango with a view to using its mobile payment platform. Bango is also targeting the payment platform in other similar mobile centric countries in the Asia Pacific Rim, Singapore and Taiwan being notable areas.

The other key take for me was the closing cash position of £5.6m which will be sufficient to fund the business without the need to tap shareholders, according to finance director Rachel Elias-Jones, who is also comfortable with analyst forecasts that point towards Bango generating cash profit of £3m on a total EUS of £591m in 2018. But that could be a drop in the ocean if Bango continues to double EUS year on year, as it has done for the past three years.

To put the growth potential into perspective, industry experts believe that the DCB market could generate transactional value in excess of $25bn (£18.4bn) by 2020. Based on a market share of 8 per cent this would give Bango an annualised end-user-spend of $2bn in three years time. Assuming its gross margin declines from 1.79 per cent in the first half of this year to 1.4 per cent by 2020, reflecting the lower fees earned on high volume routes, then on £1.5bn-worth of transactions its gross profit could soar to £20m and generate north of £10m of post-tax profit, a chunky sum relative to Bango's current market capitalisation of £155m. I would also point out that Bango has accumulated tax losses of £35m to offset against future profit, reflecting the substantial spend in its platform and marketing channels, so shareholders can expect a chunk of future profit to be tax free.

Admittedly, Bango’s shares have risen 166 per cent since I first advised buying at 93p ('Bang on the money', 26 Sep 2016), so investors are now cottoning onto the growth potential. However, I feel that my target price of 300p, valuing the equity at £200m, or 10 times my estimate of 2020 net profits, is not unrealistic. So, having last advised buying at 225p (‘Repeat buying opportunities’, 29 Aug 2017), I continue to rate Bango’s shares a strong buy."

[simonsaid1] 21/9/2017 20:29

Great posts here. Bango Boost is exciting indeed, and still being actively developed. It's Bango's 'Big data' project and a very clever use of their system. I recall seeing a presentation about it somewhere, will try to track the slides down.

[egrid1] 21/9/2017 20:01

One part of the Bango platform that does not seem to get enough coverage is the Bango Boost. If, as reported, the system can achieve up to 35% increase in business, that is a tremendous benefit to the company that uses Bango, with a value way beyond the 1.5% that they have to pay for the transaction to Bango.

On a game, or app, where the marginal cost to the seller of an extra unit is practically zero, and so nearly all of the income is profit, paying 1.5% and getting a 35% uplift in sales is a tremendous value.

The same is true for tangible goods, if a similar uplift in sales is being achieved. Just for comparison, take a look at eBay fees for a sale on their site... companies can easily be paying eBay 5% - 10% of the sales price for the sale, and Paypal fees on top.

[nimbo1] 21/9/2017 17:46

You would have thought if japan goes very well they would do just that - it would make sense to do it before rolling it out to other territories if that is ever on the cards.

[simonsaid1] 21/9/2017 15:25

Simon Thompson in the comment section under his article:

'Bango's mobile payments platform helps to drive traffic to Amazon, so it's a win win situation for all parties. Moreover, if it all works out, then the easiest way for Amazon to create its own mobile payment platform is to buy Bango, small chain for a billion dollar giant.

Regards

Simon'

NOTE: 'Chain' seems to be a typo for 'change'.

[chimers] 21/9/2017 08:30

Every time you see someone using a mobile phone the chances are they are busy making you richer :)Ahhh So

[nimbo1] 21/9/2017 08:26

really pleased with the higher volumes and the price action.

[lentjes] 21/9/2017 08:17

I thinks that bit is clear to everyone but what happened to the remaining 472k shares Hargrave Hale were holding ?

[markie7] 21/9/2017 07:40

Hargreave Hale was sold to Cannacord. So, there were several RNS's yesterday which updated the name. Hargreave Hale as an independent business is no more