Bango Share Discussion Threads

[kingbarolo] 11/2/2018 18:30

Agreed. As these high value revenue streams ramp up during the course of this year, and costs remain fixed, we should see this convert to a nice profit by the end of H2 (ST forecasting £3m, I believe). With regard to growing market share, the guys on London SE who attended the Strategy Day say the tie up with Amazon Japan has gone well and they expect to see further growth into other parts of Asia through Amazon. Massive if it happens!


Thanks for that link. A confident and pretty convincing performance by the Bango team, I thought. Not sure what's holding the share price at these levels at the moment but it has to come bouncing back, sooner rather than later.

[lentjes] 11/2/2018 05:46

Strategy Day

[lentjes] 10/2/2018 09:12

For me market share & land grab are priorities over margin although a balance is required to limit cash burn.

There were a number of potential high value revenue streams activated in H2 2017 and whilst H2 revenue at £179m was great news I suspect that as it takes 12 - 18 months for EUS to ramp up after first activation of a payment route there was very little contribution from these revenue streams. The same applies to the Amazon retail activation and the November Prime & Student membership activations so for H2 next year I suspect we will see a tremendous increase in EUS and as you say this all goes to the bottom line as the operating cost of the Bango Platform is mostly fixed.

[spawny100] 09/2/2018 20:42

Agree with other posters. Bango need to grow up if they want to be treated as a proper company worthy of investment. EUS and run-rate are fairly meaningless numbers by themselves and can obfuscate the real picture. Investors want turnover and margins for this sort of business.

[kingbarolo] 09/2/2018 20:37

Thanks for the clarification, Lentjes - if you’re saying the annualised figure was based on December’s figures, it’s easy to see how distorted this could be in a month when the sale of physical goods goes through the roof. It may also go a little way to explaining why H2 figures can be so much stronger, but I don’t see why this performance can’t be replicated or improved upon as Amazon and Bango grow in Japan, and other markets come into play. It would seem, also, that the increased December sales will drop straight through to the bottom line, albeit at reduced rate when sales reach the threshold set. Somewhere in the back of my memory I’m thinking the rate drops from about 1.8% to 1.4% (not too dramatic, especially as it’s virtually all profit!). Any thoughts?

[lentjes] 09/2/2018 13:14

kingbarolo

You need to be clear that the EUS at £450m mentioned / expected by the market is annualized exit run rate and not the year total. I actually think the annualized EUS at year end was far higher but we may never find out as if my thoughts are correct this could set a very high bar going forward although I don't see why Bango could not release the actual end December EUS caveated with a statement that this was a high seasonal EUS related to physical goods. This is not to say Bango may not do this at the Year end results on 13th March.

I actually do not give to much wait to the exit EUS although used in the correct way and explained could give a good indication that Bango continue to move in the right direction.

The 2017 year total EUS has already been stated in the Jan 8th trading update as £271m which is more than double 2016 (£132M) and which included £179m for H2 (almost double £92m H1). A nice trend although could have been better but for a slow H1.



The key financial figures that the market will judge Bango on at the year end results will be margin and cash burn looking to profitability and most importantly that Bango expect again to at least double the number of rice grains on the chess board in 2018

[kingbarolo] 09/2/2018 12:40

From memory forecast profit for 2018 is circa £3m, growing to circa £10m over the next three years. Provided Bango continues to grow EUS at forecast rate, these figures are attainable (factoring in reduced percentages as volume increases). My only concern is that this story doesn't change because Bango has a high valuation based on this (though this has reduced somewhat). But so far all the evidence is to the contrary. March 13th is a key date but if it confirms EUS at £450m + we're right on track. Growth forecasts will also be key, but there has been no evidence that market share is reducing. Quite the contrary, Bango's growing array of data tools is giving it the edge over its competitors. It's worth a look at the London South East Board for reports back on the Strategy Day - they confirm we're on course.

[lentjes] 09/2/2018 08:13

Or should I have said coconuts

[muffster] 09/2/2018 06:43

Ok I have this one. Look at turnover figures since 2011. Please just look. You'll see

[kingbarolo] 08/2/2018 17:24

Agreed, falling margins would impact but any analysis I’ve read in the last year or so has factored this in - increased volumes, reduced margins. ST’s analysis demonstrates, exponential growth in EUS, reduced margins as volumes increase, but impressive profit growth over the next 2 / 3 year never-the-less. Happy to be proved wrong but where is the contrary evidence coming from?

[muffster] 08/2/2018 16:08

It does king C, but delve deeper and EUS is meaningless on its own. You really need what the turnover is, what the gross and net profit is.......or loss.Just growing EUS on a falling margin, as I suspect is happening, doesn't do much for the buy case. In fact it supports the sellers.

[kingbarolo] 08/2/2018 13:43

In my opinion there's good reason to think the dip in share price is temporary. The placing didn't help but the rot started with the January update when the company casually announced total EUS "in excess of £400m" (leaving open the possibility that it could fall well short of market expectations). The market had been expecting £452m+ and responded accordingly. Since then Simon Thompson has reported that Cenkos Securities are comfortable in the belief that the latter figure is accurate - we'll find out on the 13th March when the full year's results are published. But if this is the case it will mean that Bango's growth is well and truly on track and the market will respond quickly in the way it always does with this stock! It's recent acquisition will further stimulate growth!

[cryptotrade] 08/2/2018 11:16

Of course paypal were more expensive, eBay owned them and the market. Now of course, they can start looking at options. I will use paypal anyway, no matter what, but if they don't evolve, they will end like the rest.

[thomas4billing] 08/2/2018 10:48

And you have been polite for the first time... I may then share the sweetie with you

[chimers] 08/2/2018 10:38

Actually you made a good post for the first time ever.
Go take a sweetie out of the jar.

[thomas4billing] 08/2/2018 10:37

If it reaches 80p...Boku may then swallow it to become Bogo... and reaches then 800p. Could it be an interesting scenario ? Your thoughts please with No 4-letter-words as I have sensitive ears

[muffster] 08/2/2018 10:10

In fact looking deeper into this Adyen offer cheaper processing than PayPal.When looking at Bango turnover it has fallen from 2011. Seems that the reason to buy Audiens is because of necessity due to higher volumes but huge margin reductions and cheaper competitors.

[muffster] 07/2/2018 23:20

PayPal dropped by Ebay in favour of Adyen.

[lentjes] 07/2/2018 05:56

Chimers

It’s now safe to come out from your hidyhole, Armageddon didn’t happen

[chimers] 06/2/2018 19:29

Its going to 80p
It has been written.

[whichwaynow] 06/2/2018 18:37

Nimrod. Likewise. Fantastic value at this price.

[nimrod22] 06/2/2018 16:37

Bought some this morning, and caught the rally. I wonder if its a dead cat bounce or will continue on an upward trend again tomorrow.......