Bango Share Discussion Threads

[lentjes] 21/2/2018 10:51

Its like stinky garlic bread & kebabs in the 80s, its the future

[muffster] 21/2/2018 10:46

My puzzle here is that this is valued on a PE of 96 ish.It will record results of probably a 2 million loss.Even if EUS doubles in next 2 years to 500 million it will have a turnover of circa 7.5 million. Net profit maybe 1 million.So to command a market cap of 120 million now?

[muffster] 21/2/2018 10:40

Good analysis.. Like it

[lentjes] 21/2/2018 08:47

haozhen

Agree with you all the way, many people do not understand what the Bango platform does / can do and just think it is a payment aggregator simply allowing payments to be made where in fact the Bango platform is far more powerful.

I view the Bango Platform like the London underground only all travelers are digital payment transactions and the stations and retails outlets as the MNO / Merchants. The Bango platform then tracks all payments from cradle to grave through the system (underground) recording all data including frequency, value of spend etc etc. Even if they stop at Starbucks for a coffee in the underground they record / store the data related to the spend profile. They can then process this data which is then useful to the MONO's and Merchants to enable them to target the audience as they travel through the system to increase EUS. The fact that the Bango platform has tools such as Bango Boost / Deep attracts more and more MNO's and Merchants to use the Platform so they can have access to the data which you can then just plug in like adding more underground stations and coffee shops which then adds further traffic through system increasing EUS and further data gathering.

[haozhen] 21/2/2018 07:56

EUS must be most important factor.
It show how BGO customer are using the Bango system for their success.
If Amazon Google Samsung Microsoft use BGO a lot - it get more valuble.
Of course cost to do EUS is zero if many billion capacity already made.
So that is good - a nice 100% margin busness.
And the DATA oilmine is maybve very nice extra revenue source but only if high EUS.

[lentjes] 21/2/2018 07:08

Somewhere in that ball park but slightly less. Maybe £3.7 revenue from EUS and £100k from platform fees. I expect a slight increase in operating costs ( inflation & additional staff) to approx £5.4m resulting in an LBITDA for the year approx £1.7 (Y2016 £2.8) although we may have some 1 off non recurring cost so for me anything below LBITDA £2m is progress and a growing company

[muffster] 20/2/2018 22:49

So circa 4 mill turnover

[lentjes] 20/2/2018 22:33

Just for the record I’m anticipating margin to be around 1.4% on £272m EUS for Y2017 to be announced on 13th March although long term I’m happy for margin to drop further as EUS builds.

My view this would also be inline with market expectations

[lentjes] 20/2/2018 13:03

Your opinion noted

For me I'm happy for margins to drop as part of the Bango global land grab, not many companies can survive on the low operating cost that Bango have so eventually they will put their competitors out of business and swallow up their EUS.

My view remains increased EUS demonstrates a growing company.

[muffster] 20/2/2018 12:37

Disagree. Because EUS growth could be amazing, but they've had to sacrifice margin to get it. That's the picture at the moment, falling margins and growing EUS

[lentjes] 20/2/2018 08:14

Actual EUS growth is a good indicator of how the business is growing

[muffster] 20/2/2018 06:59

So forget EUS growth. It's turnover that counts, which is a margin of EUS.

[muffster] 20/2/2018 06:58

Bango current estimated PE ratio of 95.

[muffster] 20/2/2018 06:56

2016 Bango changed the accounting for revenue and moved to a new way of reporting.Previously Bango's turnover reflected 100% of the transaction where Bango was merchant of record and Bango profit only where Bango was the agent. From 2016 Bango's revenue is 100% profit as the growth in the business has been from the agency part.

[eezymunny] 19/2/2018 23:40

cryptotrade

BGO used to report the full value of customer purchases as revenue. Now they just report the fee they collect from the sale (1-2%?). Try doing some research.

[cryptotrade] 19/2/2018 14:25

The only thing I;m keen to understand is how did their revenue go from 30m in 2010 to now 2.6m. How was that revenue lost over 7 years? Was their model different then. I always though they did DCB.

[cryptotrade] 19/2/2018 13:19

Len, King, thanks for that.

I'll needs to see when the results are out.

Still feels to high because if they don't hit those numbers it will fall. So one could say the future is currently priced in which means is not a great but with huge upside at the mo.

[kingbarolo] 17/2/2018 17:20

Good point - everything heading in the right direction!

[lentjes] 17/2/2018 07:29

Agree with everything you have said but would add that in addition to the big corporations the global MNO’s are desperate to increase or in fact just maintain their revenue as their traditional revenue generating streams related to voice and data packages are declining. DCB. wallets and the related marketing opportunities are the way they see they can increase their revenue so will be scrambling to get onboard the mobile payments gravy train.

Remember it’s the MNO.s are the gate keepers to everything in the modern world

[kingbarolo] 16/2/2018 19:47

The valuation may look a "little" high at the moment, but maybe not so high if you buy into the story. Total EUS for 2017 was £271m and the forecast for 2018 is £592m; 2019 & 2020 exponentially higher(Cenkos Securities). But the point about this company is costs are fixed so once revenue has reached a threshold of around £533m all costs are covered and all additional income drops straight into the bottom line. So if total EUS estimates for 2018 are accurate we can expect a profit circa £3m, and for two years time a profit of £10m is forecast, potentially valuing the company at £200m (ST, Investors Chronicle). Of course there's risk but this is increasingly being mitigated by its growing market share; its association with the world's biggest corporations (Microsoft, Amazon, Netflix, etc); its market leading software with data analysis features; and a market that's only just waking up to the potential of DCB - who knows how big this market will grow? Bango is in a great position to capitalise on all of this and achieve its aim of becoming the "Standard Model". Whilst much of this is unproven yet, the "noise" around Bango is growing and the question is whether to get in now or wait until the company is more established? I guess the valuation is high because alot of us think its going to fly - You pays your money and you takes your chance!

[cryptotrade] 16/2/2018 15:03

does this really have just 2.6 million turnover? I don't get the valuation.

In 2010 they had 30m revenue, now 2.6m.

[lentjes] 16/2/2018 13:49

New interview with Grahame Riddell Microsoft Director of Carrier Billing (supported by Bango).

Last 30 seconds very encouraging for future activations in nearly all Bango key markets.

[lentjes] 15/2/2018 13:24

Whilst not directly mentioned the Bango / Amazon deal gets a mention

hxxps://which-50.com/eretail-sales-pass-3-3-trillion-2018/