BNN Technology (BNN) reported mixed results for the first half, with revenues rocketing, but pre-tax losses more than doubling due to a jump in costs (see table). The China-based technology company underwent a makeover last year, transforming itself from an online lottery operator into a payments and digital content business. A £25m placing in April, at 80p a share, served to support growth in payments, and to fund the launch of a student and credit services platform.
Widening losses were the result of growing administrative expenses. These included costs relating to BNN's deal to provide payment services for news agency Xinhua's mobile app, as well as growing headcount, and professional fees accrued while pursuing a listing on Nasdaq.
Contracts with Manchester City, Arsenal and Barcelona football teams led registered user numbers for BNN’s sports platform to grow by more than a third to over 350,000. Users have access to football microsites, and can participate in competitions and online training camps.
Meanwhile, sales for the payments division were largely driven by the legacy lottery business, but there was growth in the mobile top-up business and a pre-paid petrol card was launched in July, on a test basis. Related revenues are expected to "grow steadily" in the second half.
| BNN TECHNOLOGY (BNN) | ||||
| ORD PRICE:44.75 | p | MARKET VALUE: | £107m | |
| TOUCH: | 43-46.25p | 12-MONTH HIGH: | 174p | LOW: 45p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 22p | NET CASH: | £10.1m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax loss (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016* | 0.54 | -6.5 | -4.36 | nil |
| 2017 | 4.63 | -15.5 | -7.08 | nil |
| % change | +762 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *2016 figures restated to reflect an additional £2.4m loss from cancelled loan notes | ||||
