Bango Share Discussion Threads

[mad foetus] 15/1/2018 07:33

But if the prime membership is free, I wouldn't have thought Bango would be receiving much for facilitating subscribers getting something that they are not paying for. More detail needed imo.

[chimers] 15/1/2018 07:10

Bango launches resale technology with Amazon in India

Delivering Amazon Prime memberships to customers through Airtel





Bango (AIM: BGO), the mobile payments company, announces that it has expanded the use of its platform to provide resale and bundling technology to Amazon, enabling customers to sign-up to Amazon Prime in India through resellers that offer product bundles.



India's largest mobile network operator, Bharti Airtel, is the first to make Amazon Prime available as part of a bundled package offered to its customers. Eligible customers can activate the offer through the Airtel TV app, entitling them to enjoy the benefits of a free one-year Amazon Prime membership.



The Bango Platform ensures that the moment the customer accepts the service it becomes active and they receive uninterrupted access for as long as they continue to subscribe. This launch represents a new application of the Bango Platform to enable reselling at scale.



"Bango partners have identified another way to meet customer needs for instant, uninterrupted access to the best content and services. Bundles and resale are a natural business model extension for merchants wanting to increase customer reach", commented Ray Anderson, CEO, Bango. "This launch highlights the versatility of the Bango Platform and strength of relationships that have seen Bango take partners into new territories, for new types of goods and services, through one, standard platform."



This launch follows the successful launch of Direct Carrier Billing (DCB) for Amazon retail customers in Japan (June 2017), which then expanded to customers of Amazon Prime and Prime Student membership programmes (November 2017).

[haozhen] 15/1/2018 01:01

Is BGO.L in here? Seem like Operator Billing in India. BGO hotbed with GOOG and AMZN

hxxps://gadgets.ndtv.com/telecom/features/airtel-free-amazon-prime-subscription-how-to-claim-offer-1799204?pfrom=gadgetstop

[amt] 12/1/2018 22:15

Yes they can get up to 5 billion eus without a major upgrade I believe.
At that level the margin would perhaps be lower than current 1% not unrealistic
I dont have concerns about margin.
The key is the rate of growth of eus which needs to keep doubling year on year for the next 3 years to get the share price moving forward. Until confidence in that metric is restored I dont see much upside.

[simonsaid1] 12/1/2018 16:50

To address your latter point first, the state of UK tech stocks is moot as Bango does the vast majority of its business overseas.

Bango's portion of each transaction varies depending on the details of the contractual arrangements they have with each retailer. They do give approximate figures sometimes, I haven't anything to hand (I can't recall it, perhaps somebody here can), but this month's Strategy Day usually yields a presentation with some of this kind of information present.

Of course, that figure only tells part of the story. Due to the way the platform works, adding new retailers and increased transaction flow does not significantly increase the platform's running costs, hence all growth after going run-rate positive last year becomes highly-geared toward profit. That is one of the key points in the investment case here.

[bookbroker] 12/1/2018 16:38

That’s what I am doing, but the rate of growth is subjective, EUS may have doubled over the last twelve months, but what exactly is BGO receiving per transaction, I’m not going to argue, the success of the company in the long run will confirm all, perhaps you would like to enlighten me as to why tech stocks in the UK are firmly in the red this year on the whole, the odd exception being WAND. And TAP.!

[simonsaid1] 12/1/2018 16:28

That is just utter nonsense and I can only assume since you took the time to write and share it that you desire a lower buy-in price or wish to see the price deflate to justify your decision to sell.

What's this about 'consistently cash flow positive'? Revenue is demonstrably increasing (see last RNS) and costs are relatively static. And the company's cash burn was considerably lower than expected, which obviously points to early profit building. They confirmed a turn to positive EBITDA on a monthly run rate basis back in the autumn and revenue has risen since then. Doesn't take an accounting qualification to work out what that means.

The last 'statement' was merely a trading update they do each January. Don't confuse this with full year results which will come in March with all of the usual accounting figures.

As for the current valuation, it's very difficult to put a number on a tech business in its growth phase. It's anyone's guess how big this will get, but many of us believe this is a very well-aligned business that has a product that taps into something that is increasingly in-demand in the developing world in particular. I have no trouble believing it will grow to the size of its current market cap, and even then it would attract a P/E premium like any growth stock.

If you don't believe that then you simply don't believe the business case, so you best stay away.

[bookbroker] 12/1/2018 16:00

I think this will head back to a 150p until it can demonstrate that it is consistently cash flow positive, it looks a rich valuation frankly right now, the last statement was very thin on detail as far as actual revenue was concerned!

[egrid1] 12/1/2018 11:00

I recall that Bango, in response to questions about risk, stated that no money was passed to the retailer until Bango had themselves received the money.

This leads me to assume that Bango would deduct the fee from the proceeds passed to the retailer (much like Paypal does). If so, it is more of a case of how long it takes for Bango to receive the funds from the phone carrier. Does the phone carrier pay immediately, or do they wait until the phone bill has been paid (assuming it is not pre-paid).

Most payment systems pay the retailer within a matter of days. If the retailer had to wait potentially a month, or 6 weeks, it would make this payment method unattractive compared to credit cards.

Who is carrying the risk in these transactions - particularly for tangible goods. Apparently, it is not Bango, so is it the retailer or the phone company?

[simonsaid1] 12/1/2018 10:08

Good point Lentjes - one would expect invoices to allow 30 days for payment or something similar.

Nonetheless I continue to suspect the number was very high and they don't want to release it and set an EUS standard that is not replicable in latter months. Users here like 'AMT' have already shown they are trying hard to place a negative spin on anything the company says, so if they put out a high EUS run rate these people will just use that to insinuate that the company is failing when standard seasonality means January etc are more modest.

[lentjes] 12/1/2018 09:28

What a sad and twisted man

[lentjes] 12/1/2018 06:54

Does anybody know according to accounting rules if the 4.8m cash figure at year end includes yet to be invoiced or outstanding payments against invoices.

The reason for the question is that if it doesn't then with the EUS for H2 circ 180m and annualised EUS above 400m and we are unclear what the actual December EUS run rate was (could be far higher than 400m ) then there could be (1) out standing cash of invoices for November and (2) cash yet to be invoiced for December either of which could be substantial amounts.

[amt] 11/1/2018 14:39

It all sounds very good. I just wish the interviewer had asked about that EUS at December which for me is casting a shadow over proceedings. If that gets sorted and they confidently forecast say 500 EUS for 2018 I would buy back the shares I sold.
I am a bit cautious given what happened in 2013 when things went wrong and the share price collapsed from 3.09 to about 40p if I recall correctly over a couple if years.

[milly17] 11/1/2018 13:27

I tried a dummy trade online as well, negotiated trade only!

[tombulgin] 11/1/2018 13:24

Milly17 - I saw that too and rang my broker immediately. he said a MM had entered a trade at 425 in error. Was ready to sell half my holding....

[milly17] 11/1/2018 13:15

A buy trade has gone through at 12.35 at a price of 425.50, thick thumbs I presume otherwise we have hit pay dirt :)

[chimers] 11/1/2018 11:37

He is the sort of man who doesn't realise he has been wearing the same shirt for 3 years.
More interested in the game than the result.
Would go to the park with the dog to watch amateur football but never once consider paying to see a premier league game.
Spends hours in the shed trying to fix the strimmer instead of going to argos and buying a new one for £39.99.
Owns 3 pairs of shoes.

[arab3] 11/1/2018 11:36

describing yourself chimers ?

[lentjes] 11/1/2018 11:29

Chimers

Not meant to suggest he was talking the bullsh*t and totally agree

[lentjes] 11/1/2018 11:19

Who said he was wearing a shirt ?

I'm sure I heard him flush the bog halfway through the interview

[egrid1] 11/1/2018 11:10

AMT, I thought the use of the words "due course" was in connection with the old fable about grains of rice on a chess board...

Doubling each square "it gets to... it should get to significant volumes in due course".

I suspect he corrected himself for fear of making forward-looking statements.

Earlier, in relation to the previous doubling of EUS, raised by the interviewer, Ray replies, "That's right, there are a lot of factors driving Bango forward" and then goes on to say, "We have hardly scratched the surface"

I don't think he was resiling from the idea of very high rates of growth of EUS going forward.

A positive interview... just wish I could see what shirt he was wearing!

[nimbo1] 11/1/2018 10:54

well I've just topped up. Like the recent news flow.