80. BNN Technology
Last October, Chinese lottery operator DJI Holdings dropped its name and remodelled its business as a technology platform provider. This followed on from a decision by authorities in China to suspend online lottery licences. The new incarnation BNN Technology (BNN) continued to operate land-based lotteries subsequent to the ban, but is now focusing on the mobile payments market. The ban on online lotteries has blown a hole in revenue, although the transformed platform has attracted substantive institutional support, no doubt partly predicated on expected growth rates for the smartphone market in the People’s Republic. Although year-on-year comparisons are largely meaningless, BNN delivered £2.1m in revenue in 2016 as its business mix changed. Investors will be focusing on the take-up for its services. With gross transaction volumes up from £79m in 2015 to £299m in 2016, hopes are high, but we need to see further evidence before upgrading our view. Hold. MR
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