Upload
dominque23
View
1.010
Download
4
Tags:
Embed Size (px)
Citation preview
13/04/23
1
Jumbuck Entertainment Ltd
Leading the creation of wireless, global,user-driven, communities.
BBY Limited TMT Conference
November 2nd 2006
2
Company Overview
Market Overview
Outlook
Financial Overview
3
Founded in 1999, was the first company to offer wireless chat services globally
Today is the world’s leading provider of user driven, mobile community and social networking services
June 2006 announced acquisition of wap3 community business out of Germany
Direct Agreements with over 70 carrier customers across 6 continents
Strong Revenues of $11.2m FY06 – up 59.6% on previous year
Forecasted Revenues $17m FY07
Over 15 million unique users across all of its services
Today we transmit average 3 billion page impressions per month globally
» UK generated approximately 2 billion WAP page impressions in January 2006, of which Jumbuck accounted for 19%.
Employee base of 60
Offices in Melbourne, San Francisco,Cologne, London, and Ukraine
About Jumbuck
4
An empowered and ‘always on’ generation
Aged: 14 – 35
Initially known as the ‘click and go’ generation, ‘C’ can stand for any and all of the following:
Community Connected Creative
- Extrovert - Want to be star
Content
Device: mobile phone – anytime/ anywhere
Communication: Chat, Instant Message, SMS and email
Don’t just use one – but many!
Network: local and global
Target Market – Generation Y &C
5
Core business is development and support of 4 key mobile community brands:
Power Chat (SMS; WAP; JAVA; BREW) Fast Flirting Jumbuck Island Chat Del Mundo
Success is based on the following principles:
Integration of carriers globally (connecting local & global communities) Large community 24*7 Ease of Use – simple User Interface Fun & safe services Viral Marketing – users spreading the word on our behalf
Products – Jumbucks Global Communities
6
Products - Jumbuck Global Communities
Fast Flirting- Wireless flirting service – based on speed dating concept- Average session time 30 minutes- Average growth in users per month 5%
LIVE CHAT
Power Chat- Wireless chat service- Supports WAP/ SMS/ JAVA/ BREW/ MMS- Average session time 20 minutes- Available in English, French, German, Italian, Polish and Russian
Jumbuck Island - Jumbuck Island is the worlds first mobile 3D java chat application. - Merges gaming and messaging technologies - Average session time 30 minutes- Live on Sprint; Cingular; Optus; T-mobile and O2
7
Competitive Advantages
Competitive Advantages / Barriers to Entry
- Large community - maximize user 24*7
- Direct Agreements - Moderation Services 24*7 - User Ownership - not a brand
Handset Agnostic
- Platform supports over 10,000 mobile configurations
- No alliances with handset manufacturers
- Built for Mobile
IP
- Company owns its own industry-leading software IP
8
Business Models are divided in to two categories depending on region and dictated largely by a carrier’s billing capabilities:
USA – Monthly Subscription e.g. $1.99 per month
(Rev Share to Jumbuck between 50-70%)
UK/ AUS/ Europe/ Sth America – Flat fee or fee based on data (Scaled structure)
Pricing
low price to encourage more users to join community and reduce barrier to entry is essential
Operator Cooperation important factor in success
Eliminates need for billing aggregator
Most users still discover content via the carriers portal
Provides customer support
Provides marketing support
Ensures a higher quality debtor v. end user
Jumbuck Business Model
End User (participates in
community – has content published)
Carrier (Billing; Distribution
through portal; Access)
Jumbuck (Application/ Brand/
Community/ Moderation)
9
10
SOME OF OUR CUSTOMERS
11
Market Coverage
AUS/ NZ JM B ADDRESSABLE M ARKET
- 90%
NORTH AMERICA JMB ADDRESSABLE MARKET -
95%
EUROPE (UK) USERS ADDRESSABLE
MARKET-33%
LATIN AM ERICAN USERS ADDRESSABLE M ARKET - 25%
12
Overview of Market 2 billion mobile subscribers – growing at 8.8% pa Mobile Communities to reach US$13.1 billion by 2010 (Informa Telecoms)
Includes communities interacting around;
Gaming
Music
Video
IM ; and
User Generated Content
Forecast Mobile Communities
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
1 2 3 4 5
Years 2006 - 2010
Bil
lio
ns
13
Increase in number of mobile phone users from 2 billion to 3 billion by 2010 Specifically increased number of Generation Y&C
Carriers increasing need to increase ARPU Looking to data services - non-traditional areas Need to differentiate Need to recoup investment in 3G
Mobile users moving up the value chain to use wireless content services Faster 3G networks- Still only 10% of global accessing 3G networks- Users on 3G networks - 50% increase in data in usage Enhanced Handsets (Image and Video capabilities)- MMS interconnectivity between carriers and enhanced handsets making it easier to
access wireless community services with richer interfaces:- Current global average of video phones is 15% (est. 26% in key market of USA)- More than 33% have posted images/ videos to web site – mobile makes it easier to
share in real time!
Increased penetration in emerging markets i.e. Latin America, Russia and Asia Pacific
Increased usage of SMS in USA - $3billion market today “5% of all text messages sent will relate to social network interaction in 2007” (Gartner Group)
Global trends contributing to this growth
14
What does this mean for Jumbuck?
More market growth expected in future, organic growth to continue
Jumbuck is exposed to a large number of different regions
- more likely to keep growing consistently in future compared to single-carrier/ single-region companies.
Video and 3G devices boost data usage, boost subscriber downloads and usage of Jumbuck related services
New features to increase ‘stickiness’ of users
Emergence of New business models e.g. MMS price points
15
Organic Growth - Upgrades to existing products and vertical selling of other services- Service translations i.e. Fast Flirting in Spanish; German; Italian- Integration of image and video capabilities – currently rolling out
New Customer acquisition (UK, Europe and Latin America)
- Recent contracts signed with Virgin Canada, Movistar Panama & Venezula, TIM Italy, and Kyvistar Russia.
Expanded Product Portfolio
- SMS and MMS Chat Rollout – Virgin USA recently launched
- Chat Del Mundo – launch world’s biggest Hispanic community service 'Chat Del Mundo’ in USA.
- 12.5% of USA market is Spanish speaking - Contracts signed with Sprint and Cingular
USA Presence
Acquisition
- Technology Gap
- Geographical Gap
Demo - http://kevin.s.wap3.com.ua/wchat2/worldchat.html
Outlook FY07
16
and beyond that ….. advertising Advertising will come to a mobile phone near you… soon
Advertisers recognise the power of the network and the truly connected individual is the hub of their own network
Truly targeted market, based on recognised behaviour, results in a relevant, welcome offer, not a sales pitch
Jumbuck ideally placed 3 billion page impressions
Understanding of user base – critical to relevant brand
Data on user trends
Location specific e.g. even at country level – more targeted offers likely to be even more welcomed by users and appealing to brand owners
BUT ……
Some time away
Carriers will need to be on board
Must not impact user experience or RISK community numbers falling
17
Financial Highlights
18
Sales Revenue $11.2m FY06 up 59.3%
EBITDA up 71.6%
NPAT up 51.9%
EPS up 49.2%*
Operating cashflow strong at $6.33 million
Acquisition of wap3 Community business June 2006 enhances presense in Europe/ South America.
Financial Highlights
19
INCREASED ANNUAL REVENUE
SALES REVENUE ($000's) ACTUAL: JULY 2002 - JUNE 2006
0
2,000
4,000
6,000
8,000
10,000
12,000
2002/03 2003/04 2004/05 2005/06
Financial Year
20
EBITDA MARGIN NET PROFIT AFTER TAX
EBITDA MARGIN (%)ACTUAL: JULY 2002 - JUNE 2006
0
10
20
30
40
50
60
2002/03 2003/04 2004/05 2005/06
Financial Year
NET PROFIT AFTER TAX ($000's)ACTUAL: JULY 2002 - JUNE 2006
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2002/03 2003/04 2004/05 2005/06
Financial Year
21
FINANCIAL STATISTICS
Year Ended 30 June 2001/02 2002/03 2003/04 2004/05 2005/06$000's $000's $000's $000's $000's
Prospectus Prospectus Actual Actual ActualProforma Proforma
EBITDA Margin (%) (172.6) (15.7) 30.5 52.2 56.2
EBIT Margin (%) (180.9) (19.9) 28.2 44.1 48.7
Profit Before Tax Margin (%) (181.1) (20.0) 28.2 45.0 51.0
NPAT Margin (%) (181.1) (20.0) 30.0 38.3 38.2
EPS (cents) (5.28) (1.43) 2.60 6.30 9.40
22
The Australian, July 26th, James Dunn ‘HighTech Focus on Generation Y’ “one of the best - but least known - exposures to Generation Y on the Australian share market is Jumbuck Entertainment, a mobile entertainment company that provides games and messaging services to mobile users globally. I don't know of any company that would have a better handle on Generation Y than Jumbuck”.
BRW, 03/08/2006, Brad Howarth ‘Going Mobile’ “mobile chat-room technology developed by Jumbuck Entertainment in Melbourne is now used by 40 carriers. In May 2006, Jumbuck acquired a German company, wap3, bringing the number of networks to 70, with 14.5 million users, and it plans more international acquisitions”.
Moconews.net, August 30th, Australian company Jumbuck has signed up UK operator, T-mobile, to its “suite of community services”, the flagship being Jumbuck Island, which is a 3D virtual world that acts as half massively multiplayer game and half chat function, as players walk around a virtual island and interact with each other. It’s already on Sprint, Nextel, Optus, O2 and Cingular, and this paragraph from the press release jumped out at me:T-Mobile UK, Content Manager Lenka Horakova, commented, “The real advantage with Jumbuck is that T-Mobile customers have been able to benefit immediately as they are able to communicate instantly with Jumbuck’s large established global community. We’ve already had great feedback on their services from our customers.”
Posted By james On 18th July 2006 “Last year, Jumbuck alone accounted for 19% of wap traffic in the UK, which totaled 2 billion page impressions. 30% was accounted for by other mobile community sites, with 51% being “the rest”.” Almost half of the WAP content was for mobile communities….
Thank You
23
CONTACT DETAILS
Paul G ChoiselatManaging DirectorTel: 61 3 9691 4900Fax: 61 3 9600 1500Mobile: Local - 0414 232 143
Int. - 61 414 232 143 Email: [email protected]
For Share Enquiries: Tamira HerbstCompany SecretaryTel: 61 3 9691 4910Fax: 61 3 9670 7932Email: [email protected]
For Commercial Enquiries:Olivia Hilton Chief Executive OfficerTel: 61 3 9620 3839Fax: 61 3 9620 3846Email: [email protected]
Website: www.jumbuck.com
24
Intention of this Document
This document is intended to be provided by Jumbuck Entertainment Ltd (JMB) to the Australian Stock Exchange (ASX) for public release in the spirit of full disclosure and in accordance with the Company’s continuous disclosure obligations.
It is intended that this document be read in conjunction with all other announcements made to the ASX and in particular, the statements of financial performance by JMB.
Investors should not act or refrain from acting in sole reliance on this presentation material. This overview of JMB does not purport to contain all information which investors may require in order to make an informed assessment of JMB’s prospects.
The presentation may contain certain financial forecasts and other material of a forward looking nature in relation to JMB (Forward Looking Material). Such Forward Looking Material is based on many assumptions and is subject to uncertainties and contingencies many of which are outside the control of JMB.
DISCLAIMER
This document may be used in and form part of a presentation given by Beconwood Corporate Finance Pty Ltd (Beconwood) in its capacity as an authorised representative of Falconer & Bellomo Co Ltd AFSL 244 315 in respect of Jumbuck Entertainment Ltd (Company).
Where used in a presentation or otherwise circulated, this document will be provided to a limited number of persons or investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.
Beconwood may derive fees as a result of the presentation or for assisting in the compilation of this document.
This document should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the Company. Beconwood and affiliates or any of their directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this document .
Prospective investors should make their own independent evaluation of an investment in the Company.
Nothing in this document should be construed as financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. This document consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product.