Bango Share Discussion Threads

[aleman] 20/9/2016 11:28

For anyone else new, like me. I think this is the key bit:

The revenue from EUS more than doubled to GBP0.77m in 1h2016 compared to GBP0.39m in 1h2015 due to the corresponding growth of EUS between the two periods.

The platform fees in 1h2016 were GBP0.08m, down on 1h2015 (GBP0.23m) as there was less customized development work in the period, partly due to Bango developing tools such as Project Jarvis to speed up the time to activate a connection and reduce costs. Overall, revenue in 1h2016 grew 39% to GBP0.85m from GBP0.61m in 1h2015.

Ignore the overall figure as reducing platform fees were a drag but they are now negligible. Revenue from EUS will drive things from here and growth there was very strong - strong enough to start making inroads into the 2.5m overhead costs each half. I agree that it looks possible the company might start generating cash around H2 2017/H1 2018 and it looks likely that existing cash will suffice until then. So how much should a leading direct carrier billing platform be worth if is growing like mad and very close to breaking into rapidly rising profitability? HHHmmm ...

It's a bit of a gamble on continuing rapid growth in its markets (very likely) and staying ahead of the competition (very hard to say for someone with my knowledge) although there may well be room for several players attacking different sectors. There's lots of positive noise here and the numbers do seem to back it up if they can keep costs under control in the short term. I've taken a modest punt. I suspect analyst write-ups will be good.


The thread seems fairly quiet and sensible, given the blue sky potential and rapid growth, but that is usually a good sign in my experience..

[smallcapinvestor1] 20/9/2016 11:01

https://news.bango.com/2016/09/20/payment-executive-robert-payne-joins-bango-to-develop-us-partnerships-from-new-silicon-valley-office/

[smallcapinvestor1] 20/9/2016 10:04

For me concerns over margin are missing the point.The company have decided to go for a land grab and become the dominant platform globally. The investment case here is based on if you believe they will dominate carrier billing in the app stores and if you believe carrier billing and app store growth will continue. If you do believe these things then what the company will be in two to five years is why you buy the shares today.If you don't want to play this theme then move on to another stock.

[oshy92] 20/9/2016 08:54

Morning. A selection of short TV clips on Bango below including; results interview with CFO, overview interview with CEO and a short animated film explaining Bango's platform.

hxxp://fmp-tv.co.uk/company/bango-plc-investor-video/

[amt] 20/9/2016 07:37

On current trends should use another 3m of cash before profitable a year from now.

[lentjes] 20/9/2016 07:33

Great progress but not happy with the reduction to in margin to 1.67% and not sure how they can say this is inline with market expectations when at 2015 results they said they would maintain 1.8%. BANGO will be offering the service for free if this keeps going although hard for our competitors with higher overheads to compete against us and as long as we have the volume increase to suit drop in margin then all is well.

Also EUS only grew 8.4m since June so hardly a significant impact by Pokémon Go but as stated overall great progress.

[smallcapinvestor1] 20/9/2016 07:15

Excellent results Very happy

[smallcapinvestor1] 20/9/2016 07:14

· End User Spend (EUS) increased 150% YoY to £46.17m (1h2015: £18.45m)o Annualized EUS in June 2016 was £159m, 250% more than June 2015(143% excluding BilltoMobile)· Gross profit on EUS increased to £0.85m (1h2015: £0.61m), up 39% YoY· EUS margin of 1.67% (1h2015: 2.06%), in line with forecasts· Improved Adjusted LBITDA* -£1.64m (1h2015: -£1.82m)· Opex stable at £2.49m (1h2015: £2.43m)o Over 5x EUS growth confirms platform scalability· Cash balance of £7.24m at 30 June 2016 (30 June 2015: £4.04m; 31 Dec 2015: £12.14m), sufficient to fund the group through to profitability

[lentjes] 19/9/2016 09:36

Having carried out a bit of research over the weekend the activations in the announcement on Friday are not new activations ( with the exception of Xbox)as the trading update on 11th July had already stated the we had new app store activations in Finland, Hungary and Norway and the Microsoft carrier billing availability web page has been showing these activations for several months. Bango did the same last year recycling the same activations in Latin America during June and July via several RNS & blogs.


However what is new ( and very interesting)in the RNS on Friday can be seen in the footer About Bango in which it states in the last para

Bango also partners with leading payment providers around the world to drive new users and revenues through its industry leading mobile payment solutions.

This would fit with PayPal now appearing on the new web page as one of our partners and with comments made by Bango over the last 12 months that they were involved in developing alternative payment methods.

This in itself could be massive for Bango

[lentjes] 16/9/2016 15:23

Yes another positive RNS although I think this is more about announcing DCB availability for Xbox One users more than the Windows 10 and MNO activations themselves.

In the last year BANGO only tend to issue RNS when they have a new area / market they have moved into ( which in this case is the Xbox) rather than day to day MNO App store activations.

Anyway all looking well and fingers crossed for Tuesday

[smallcapinvestor1] 16/9/2016 08:26

Nice news today. New Microsoft routes opened to in Scandinavia including xbox one for the first time.

[lentjes] 15/9/2016 13:10

We have updated website at last. No major changes but interesting that PayPal are now listed as one of our partners.

That's a new one on me

[lentjes] 12/9/2016 11:28

Correction of my post 7th September. Pokemon Go revenue now US$500m in first 63 days.

We could be in for an interesting H1 & TU RNS next Tuesday and I hope BANGO have not given the market too higher expectations of the impact of PG on EUS although Raymondo has always been careful in the past not to promise anything he can not deliver so the fact he has gone public on the impact PG gives me some confidence we could be in for good news.

However, an EUS of anything above GBP180m entering September, keeping margin above the 1.8% and overheads around the annual GBP5m (excluding M&A's) would put BANGO ahead of the curve

PS

Looks like a bit of a tree shake going on this morning although the market is down across all sectors. Spread also reduced by the MM's to 2p

[lentjes] 09/9/2016 07:24

Latest share holding as 7th September, Some big movers

Lion Trust down 100k
Herald up 500k
Sneller up 50k
Wellington now below 3%
Schroders now below 3%

Looks like Sneller and Herald have taken up the dump by Wellington & Schroders. Question why no RNS from Wellington & Schroder going below 3%

LIONTRUST ASSET MANAGEMENT: 11,013,724 (16.93%)
HERALD INVESTMENT MANAGEMENT: 9,281,267 (14.26%)
ODEY ASSET MANAGEMENT LLP: 7,088,000 (10.89%)
MR RAYMOND ANDERSON: 6,628,949 (10.19%)
MR ANIL MALHOTRA: 3,986,815 (6.13%)
HARGREAVE HALE: 3,291,500 (5.06%)
INFLECTION POINT INVESTMENTS LLP: 3,135,139 (4.82%)
MR RICHARD SNELLER: 3,050,000 (4.69%)
CAVENDISH ASSET MANAGEMENT: 2,126,033 (3.27%)

[smallcapinvestor1] 08/9/2016 11:21

Apple app store growth 106% y.o.y.That's an incredible indicator for the whole industry and therefore bango's platform. According to techcrunch this is largely down to pokemon go.

[haozhen] 07/9/2016 15:53

I thank Mr Lentjes for some useful wisdom.
As ened user spending comes on as Pokemon and more other stuff grows, Bango will go soon to rapid profit and cash genetaror. Very nice.
I am very interested in China and Japan activity - such a hot market and getting hotter - and Bango stealthy but very good position with biggest app stoires and maybe Danal games companies.
I am so pleased with my buy at 40's pence level - but thank much more to come now

[smallcapinvestor1] 07/9/2016 07:58

Large seller cleared yesterday. Hence the big volume and move up.

[j777j] 06/9/2016 12:18

Mobile streams up nearly 200% today.Methinks Bgo has far greater potential.

[lentjes] 06/9/2016 07:01

20th September BANGO H1 Results. Will Raymondo spring a surprise ?

2 weeks from today BANGO will announce H1 2016 results and based on the info we know in relation the M & A of BilltoMobile and the end June EUS as already posted I expect cash in bank to be around £8m give or take 100k either way so no surprises in relation to H1 results.

However, after reading various articles, interviews and the increasing EUS could Raymondo spring a surprise in that we have reached or within touching distance of month on month break even

To support this possibility I summarise the following

Organic annualised EUS @ end June 2016 £101m as per trading update
Add 2 months increase on EUS lets say £117M
Add BilltoMobile (£58m lets assume no increase)gives total annulised forecast EUS £175m
which gives approx £14.6m per month EUS
BANGO breakeven = approx £20.8m
So BANGO need to find approx £6m per month

The BANGO end June EUS was pre Pokemon GO (PG) launch which has now earned total US$440m with US$120 coming in the first month so in August PG had US$320 incoming. The question to ask is that BANGO reported a significant increase in EUS following the launch of PG so what is significant you ask ?

Well at today's exchange rate US$320m would give £246m so if only 2.5% has gone via the BANGO platform we would have our £6m

Wishful thinking but not impossible

[lentjes] 31/8/2016 16:21

Looks like the big Apple carrier billing band wagon has just rolled into Suadi Arabia

Maybe the see carrier billing as a way to get their US$ 14 billion back from the EU LOL

[lentjes] 30/8/2016 17:58

Great read, may give the share price a kick

[lentjes] 28/8/2016 08:39

Article from 13th July. Strong carrier billing growth makes up for falling voice revenues across UK PRS sector

Despite MNO issues with actually turning carrier billing into a viable service in the UK, carrier billing revenues now account for a third of all UK PRS revenues – but voice revenues are in decline.

So finds this year’s Annual Market Review from PhonepayPlus, the UK phone-paid services regulator. Soon to be renamed The Phone-Paid Services Authority (PPSA), the review finds strong growth in operator billing revenues, which have increased by 55% from 2014/15 to 2015/16 and account for almost one-third of total PRS revenue. This has contributed to an overall stabilising in the market after five successive years of dropping revenues. Operator billing revenues are projected to grow still further in 2016/17.

Sectors including games on social media, gambling, music and video content have experienced substantial growth. Revenues from music or video content have risen by 47% from last year as the trend for purchasing digital content to a phone bill is predicted to continue its rise.



hxxp://www.telemediaonline.co.uk/strong-carrier-billing-growth-makes-falling-voice-revenues-across-uk-prs-sector/

[lentjes] 25/8/2016 18:45

Just listened to the interview again and thought I would sum up the highlights

- we have deals with all operators in Indonisia (I was not aware BANGO had deals with all operators in Indonisia)
- our partner DANAL has relationships to help the Chinese spend on apps with BANGO
- further acquisitions planned ( although she said that not Ray)
- lots of cash in the bank (I expect approx 8m end H1)
- 5 minute into interview Ray stated we are still spending a little bit of cash (little being the important word although lets see in the H1 results but if true then great)
- EUS 1/4 billion which is halfway to profit at end June ( as per trading update)
- capacity at 1 billion ( we already knew this)
- capacity can expand to 2 billion at little cost ( I expect this to be confirmed in H1 results)
- and then a further billion at little cost ( total 3 billion now that would be nice)
- new payment routes to light up during remaining 2016
- content in App stores to grow during remaining 2016

What's not to like about that !

I'm sure Ray had a lot more to say but that annoying woman cut him off at the end.

[lentjes] 25/8/2016 08:05

Yes great interview and I think he wanted to say a lot more but that annoying woman with the false smile couldn't keep her gob shut

[amt] 25/8/2016 07:51

The recent proactive interview with Raymond was excellent. He was talking about break even in the next year and upgrading to billions of user end spend at minimum cost. So potential is for tens of millions of income as and if things go to plan. All very exciting. Suprised the share price hasnt gone to all time highs.