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Microsoft is using the Bango Platform to bundle Xbox cloud gaming
subscriptions for telco partners to include in their subscription packages.
The latest announcement contains no financial details and consequently we
make no changes to forecasts at this time. Nevertheless, we believe gaming
represents a potentially significant opportunity for the group. In our view,
the release signals the deepening of the existing strategic relationship with
a tech industry titan (Microsoft) beyond payments, and also demonstrates
further commercial expansion of Bango’s bundling and resale offering into
the leading cloud gaming service, including physical goods such as consoles.
? Opening up access to Xbox subscriptions and console sales: In time for
the key year-end buying season, Bango has expanded its relationship with
Microsoft to enable telcos to bundle Xbox Game Pass Ultimate and Xbox
All Access in their consumer subscription packages. This heralds a new
application of Bango’s technology to hardware subscriptions. Telcos can
leverage the power of gaming, and the launch of a key ninth-generation
gaming platform - Xbox Series X - to grow their subscriber bases, reduce
churn and increase customer engagement. Unlike a traditional monthly
subscription, which Bango has a track record of powering for the likes of
Spotify, Google and Amazon, a hardware subscription has a 24 month
minimum commitment– like a mobile phone contract, bringing a solid
foundation for Bango and the telcos future revenues.
? A potentially significant opportunity: Industry sources forecast Microsoft
to ship 37m Series-X consoles in the four years following the November2020 launch (source Ampere Research). However, we believe the real
opportunity for Bango is to leverage the ongoing commerce shift to a
subscription-based business model, following the successes of movie and
music players such as Netflix and Spotify. The inclusion of hardware
bundling opens-up gaming to millions more people who are either
unwilling or unable to buy a console. Microsoft’s cloud gaming model
means the consumer doesn’t even need the Xbox to subscribe to
unlimited monthly gaming – a smartphone or PC is sufficient.
? Further validation of Bango’s bundling & resale technology: The group is
continuing to gain commercial traction with the global tech giants for its
bundling and resale offering. We note the group has previously
announced bundling and resale contracts with the likes of Spotify, Amazon
and most recently BT and BritBox.
In addition to the RNS for the scale up in Asia looking at the careers page on the Bango website it looks like the MEA is the next region for scale up
https://bango.com/bango/careers/
Nothing to confirm Bango are involved and Disney have so far stayed schtum as to who they are partnering with but we know Bango are working on promoting Disney and Airtel are are partner in India
https://telecom.economictimes.indiatimes.com/news/airtel-offering-disney-hotstar-vip-with-postpaid-and-broadband-plans/79018841
You have to give credit to the Bango founders Ray & Anil to have the vision many years ago to target APAC as there key market rather than lower hanging fruit on shores closers to home. They also then had the vision to trailblaze into Latin America and Africa with both markets booming.
https://www.consultancy.uk/news/25975/global-market-size-of-digital-payments-industry-soares
Just posted by Bango
-In the United States, paid for premium video streaming is up by well over 100% since January.
Since February, Asia has seen online payments for physical and digital goods increase by over 30%.
Countries in Africa have seen in-app spending rise by almost 50% compared to the start of the year.
Indonesia has seen in-app payments increase by over a 40%.
https://bango.com/2020-the-year-to-find-new-paying-app-users/
Reading the attached and considering Bango’s main markets are in the US, Japan, South Korea & Latin America and that Android has the biggest growth and market share in these regions you can understand their confidence in EUS growth forecasts for years ahead
https://www.appannie.com/en/insights/market-data/mobile-game-consumer-spend-exceeded-20-billion-in-q3-2020/
Good for Bango future growth in subscription EUS if Netflix get it right especially with BAngo agreements with MTN
https://www.bloombergquint.com/business/netflix-bets-on-mobile-content-blitz-to-strengthen-africa-grip
NHN increasing their skin in the game and looks like they picked the shares up from ODEY
Interesting development
Reading the attached you can understand why the Bango BoD are confident of hitting their full year target
https://venturebeat.com/2020/08/17/app-annie-why-mobile-advertising-is-a-must-during-the-pandemic/
Interesting read and Nexon using the Bango audiences is a great validation of the Bango Marketplace
https://bango.com/news/general/post/three-minutes-with-nexon?utm_source=twitter&utm_medium=presser&utm_campaign=BM&utm_content=180820&utm_term=bango
https://disruptive.asia/direct-carrier-billing-dcb-growing-revenue-stream/
Now over 75 audiences available
https://bango.com/news/general/post/more-countries-more-categories-more-paying-users?utm_source=twitter&utm_medium=blog&utm_campaign=BM&utm_content=300720&utm_term=bango
To hit 2020 full year £2b EUS which requires H2 EUS to be circ £1.3b and which Bango appear to be confident of achieving the EUS run rate for December would need to ramp up to circ £250 - £300m, that's unless they had higher monthly EUS peaks in other months due to EUS kicker events such as such as Prime Day & Black Friday although Bango have always stated the December holiday season is the major EUS kicker for the year in which case December EUS could be even higher than the £250 - £300m stated above
Bango appear confident of hitting the £2 billion EUS for 2020 which would give an end of year exit run rate of approx £250m for December.
That’s without any revenue from Market place that appears to be gaining traction
Looking forward to a positive TU and an interesting week for the SP
Some things are worth the wait, never like RNS on a Friday. anyway
Lets hope so Pen90,
Ray Anderson interviews in the past have always been very measured and did not over promise, Paul Larbey has put his credibility as an honest / trusted CEO on the line with his latest interview