RE: Simon Thompson/IC20 Sep 2017 16:29
Some interesting stuff in that column:
'Furthermore, following the announcement of the Amazon deal, other online international retailers who want to tap into the huge Japanese retail market have been in contact with Bango with a view to using its mobile payment platform. Bango is also targeting the payment platform in other similar mobile centric countries in the Asia Pacific Rim, Singapore and Taiwan, being notable areas.'
'To put the growth potential into perspective, industry experts believe that the DCB market could generate transactional value in excess of $25bn (£18.4bn) by 2020. Based on a market share of 8 per cent this would give Bango an annualised end-user-spend of $2bn in three years time. Assuming its gross margin declines from 1.79 per cent in the first half this year to 1.4 per cent by 2020, reflecting the lower fees earned on high volume routes, then on £1.5bn-worth of transactions its gross profit could soar to £20m and generate north of £10m of post-tax profit, a chunky sum relative to Bango's current market capitalisation of £155m. I would also point out that Bango has accumulated tax losses of £35m to offset against future profit, reflecting the substantial spend in its platform and marketing channels, so shareholders can expect a chunk of future profit to be tax free.'