BNN Technology Share Discussion Threads

[andy] 07/7/2017 13:23

ssc857 Jul '17 - 12:27 - 5812 of 5817 1 1
Great post PC, your insight is invaluable here.

I notice JK creeping back in, trying to twist and pivot to find any inconsistency in statements between completely different posters to create a narrative of uncertainty that simply isn't there.
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A couple of thought about your post quoted above.


It's a "great post" because you hold, and therefore his positive musings coincide with your hopes for a higher share price.


Regarding your second point, JK "creeping back in", did he ever "creep out"? And if so, when?


Surely as an investor you want someone to highlight the "inconsistencies"? Else why bother coming here?


"a narrative of uncertainty that simply isn't there."

If it's "not there", why do you mention it?


Seriously, JK lays out an argument in a lucid fashion, if you disagree, why not debate the points in the same way?

He may be right, you may be right, and that makes for a good discussion!

[perfect choice] 07/7/2017 13:22

You are in the right area nurdin on commission rate in fact I calculate it slightly higher but only a little for "standard mobile top-ups"

What I think I am noticing in posts is that 2016 and H2 revenues are not "new digital" revenues only but contain "old digital" services and also land revenues, both at much higher margin. If you work through the interim and full 2016 results detail and comments, you can work out the legacy figures, which I make out to be £0.71M of the £1.527M of H2 2016. So these items are relatively static, but command much higher margins (see H1 2016 interims for margins as new digital mobile top-up wasn't launched until October). So with so little new digital revenues (£0.826M)in H2 2016 figures at their lower commission margin, if you consider the total revenues then you would see the margins overall reducing. Once we start talking of new digital revenues being £10M+ then the impact of the old digital and land revenues becomes irrelevant.

[astralvision] 07/7/2017 12:49

I will have a stab at it.

1.2.
Revenue guidance is , from the agm statement, 'net revenues will be of a similar order to 2016'. The annual results give £2.1m as revenues, so revenue guidance is surely £2.1m, not £1m? I take your point, which remains whether you take £1m or £2m, the margins seem to have dropped compared with 2016. Who knows,there are plenty of possible reasons for it. I don't view it as important, what is important is the GTV and margins going forwards on mobile top ups should increase very significantly in the second half due to the new enhanced margin Telco contract starting.

3. Perhaps not, sample not large enough to say, as already pointed out advertising, due to contribute significantly, is not a GTV income stream, afaiaa.

4. depends on your take on the likely speed of adoption of advertising and petrol payments. I would suggest if £30m was a 'given', then the shares wouldn't be at 50p+

[pj 1] 07/7/2017 12:40

''broadly in line'' that means Below imo

[nurdin] 07/7/2017 12:39

I thought margins for mobile top ups have been agreed at 0.25% or something like that.So why are the margins lower now? Hard to fathom

On £900m net revues should be around £2.25m

[perfect choice] 07/7/2017 12:34

Just filter JK, posts are irrelevant now and an unnecessary distraction.

For my take, H1 revenues I make at £3.23M in H1 2017 versus £1.527M in H2 2016 (deduct H1 interim results figure from full year and that is the H2 number). We should know in August the real number. Such is the uplift from the new Telco, advertising and motorist app (as Astral went through I note), the Board repeatedly confirmed they are relaxed with the forecast figure for the whole of 2017 which I've pencilled in at £30M, with some contingency against the higher broker figure for 2017.

[ssc85] 07/7/2017 12:27

Great post PC, your insight is invaluable here.

I notice JK creeping back in, trying to twist and pivot to find any inconsistency in statements between completely different posters to create a narrative of uncertainty that simply isn't there.

We're all now sitting back and waiting for the results to feed in, quite tedious seeing the usual best posters having to repeat their words just to bury the negative scare-mongerers who don't even have a position (as far as they'll admit...)

[astralvision] 07/7/2017 11:58

Cant see revenues for H1 of £5.7m as they have already said revs will be similar to 2016, which was £2.1m for the whole year. Your £5.7m strikes me as unrealistic and flies in the face of what they said a few weeks ago.

Re second half figures, you can't extrapolate like that as there are three strands:

1) mobile top ups, so will have a GTV figure

2) Petrol card payments, will have a GTV figure but margins expected to be sig higher than mobile top ups

3)Advertising. I do not think this is subject to a GTV figure. The expectation is for >£10m revenue from advertising, a fair chunk.

[astralvision] 07/7/2017 11:17

BNN have already indicated the revenues likely for the first half in the AGM statement:

'Gross revenues for the first half will be of the order of GBP900 million, although margins are modest and net revenues will be of a similar order to 2016. Accordingly, the half will show an operating loss broadly in line with expectations. '

The revenue in 2016 was £2.1m, the forecast revenues for the year are £34m, therefore we are looking at £32m revenues in the second half, to come from mobile top ups, advertising and petrol payments. The last two effectively launch in 2nd half, so will need to hit the ground running to make the forecast figures.

[and11] 07/7/2017 11:05

PC were there any discussions regarding advertising revenues & data capture numbers?

[perfect choice] 07/7/2017 10:41

I'm also expecting BNN to hit £30M revenues in 2017 versus £2.06M in 2016. It was repeatedly stated at the AGM that the Board are comfortable with the Mirabaud broker reports revenues and earning forecast, so that is why I quote this figure. It could be more as the broker figure is higher but giving a 10% contingency on that 2017 revenue number. There will be gross profits for H2 and EBITDA net loss with that figure (but hitting profit into 2018 as run rate gets accounted for as a full year). So all down to execution now and to publish to show the size of this turnaround.

[topazfrenzy] 07/7/2017 08:55

Very exciting times ahead PC, people will more than likely kick themselves in a year or two, to have failed to buy at these levels!

[neurolodger] 07/7/2017 06:09

He could run foot ball training camps for BNN - for paid share options that way he can improve revenue for BNN and his increase investment

[cheshire pete] 07/7/2017 01:27

Might not be a bad idea. Could do with some new PR.

[customise] 06/7/2017 21:59

Best thing we can do is tell Wayne Rooney to invest his transfer feeBNN !!! Go on Wayne Don't think he's even that naive ?????

[customise] 06/7/2017 21:55

Another good day trading on the march towards £2Dreamers head in the clouds

[charlesdarcy] 06/7/2017 17:42

Yeah ok PC looks like a quite spell coming up for a couple of weeks .

[perfect choice] 06/7/2017 14:37

Think that relates to last trade Charles, its how ADVFN works when low volume. As you say we are in a static situation right now. AGM statement mentioned some B2B deal expected in coming weeks so they may be next key RNSs we want to see.

[charlesdarcy] 06/7/2017 14:13

Offer price has not moved last 48 hours but stock marked down , 3p split ...