[Raj]

Dear Logan, Action speaks louder than words.. Same happened with Tanla. When bcg start it’s journey, all the naysayers will vanish.. Also please understand they are here for some reason/benefit..looks like we have reached the climax..please ignore the noise and keep writing for the sake of long term investors. Happy investing. Cheers..

[Raj]

Dear Logan, most of the long term investors are here since 2015. According to you, what’s the definition of long term from here for bcg. Regards.

[Raj]

Dear Logan, Market is always the king and will definitely reward the best. Currently the market is punishing bcg for its past performance.. Unless the horse doesn’t open his mouth, nor you nor I can do anything in this regard. Till then, we can only express our views 😊. Rgds.

[hw_tw]

BCG’s MC board is like a haunted house. The ghosts over there ensure that no one enters the board. The picture painted over there is that it is not safe to stay invested and not safe to newly invest in it. You are allowed to stay in the board only if you join them and keep shouting at SKR.

There are few people who also join these and satisy themselves by shouting at SKR. We think these people are all long term investors who have lost heavily in BCG. The recent rally would have given them ample opportunity to exit with profits, but looks like they have not done that and still cursing themselves and cursing SKR.

It has gone to such a lowest level that, someone is wishing death of SKR and the ghosts supporting this guy.

I would request @Logan to continue your fight against these with your facts. Let the individuals take informed decision and decide their course of action.

[Raj]

I am totally with you.. Yes the Mgmt is very active since six months. I hope things will sort out sooner than expected this time.. Cheers.. 😊

[odysee]

Absolutely right @Raj. Good question. Have been here since 2014. Patient. Hopeful. Optimistic. Impressed. Encouraged after every conference call. But still poor as a church mouse. Wonder when that will change. The market may not understand BCG or its business as often mentioned. But at the end of the day the market will have to determine the price when you and I and many others can choose to either hang on to a great (not properly understood) business, or to take some money off the table if that opportunity presents itself. At one point of time, a few years ago, the market thought a 3 digit price was fair. Now it would appear that even a 2 digit price is a struggle. And this is when the turnover and profits have almost doubled. How frustrating is that? Mr Reddy has a great advisory board when it comes to the business of ad tech. But it is beyond high time that professional help is sought to woo and wow the market and bring some cheer to the shareholders.

[VALUEBUYER001]

Dear odysee ji y(our) pain is quite understood and true but soon say in 3 months daum settlement,loc will happen and we will be rewarded be happy

[allenasrini]

Dear Odysee I am in a similar position as you are. I have started investing in BCG from 2013 onwards at a price of Rs.2.75 to Rs.56. I still have a high conviction that it will realize its full potential. Around the same time as investment in BCG, I have also invested in Tanla and now it is well on course to realize its potential. I have never lost faith in both these stocks and stay invested. The reward for long wait is handsome. If you believe in BCG please stay invested and hope that the wait is not long.

[VALUEBUYER001]

From money times book
Premium: Brightcom Group Ltd.: Low Priced Bargain!

(BSE Code: 532368) (CMP: Rs.7.24) (FV: Rs.2)
Incorporated in 1999, the Brightcom Group (BCG), formerly known as Lycos Internet, is an Indian service company engaged in providing digital marketing services and development of computer software and services. It is also a global information technology (IT) implementation and outsourcing services provider. It has a presence across India, USA, Australia, Israel, Brazil, Argentina, Uruguay etc. and has 463 employees and consultants working in 22 offices spread across the world. Its software development services are based in India. It has 2 Indian subsidiaries and 14 subsidiaries.
BCG was renamed as Ybrant in 2000 by the then promoters, Suresh Reddy and Vijay Kancharla, who started. It offers digital marketing solutions to businesses, agencies and online publishers around the world. Over the next twenty years, it became a global player in digital marketing and related platforms by successfully acquiring and integrating 10 acquisitions. One of these was Lycos Inc., formed in 1995, which was spun out of Carnegie Mellon University and was a pioneer in internet search. It holds the record as the fastest IPO from inception to listing on NASDAQ in 1996.
Lycos was first acquired by Terra Networks for $12.5 billion in 2000 and later sold to Daum Communications for $95 million in 2004. It was acquired by Ybrant in 2010 for $36 million and renamed as Lycos Internet Ltd. In 2016, Lycos launched Lycos Life, a programmatic video platform and Apollo Lycos JV. In 2018, Lycos Internet was renamed to Brightcom Group Ltd. It was ready with changes required to conform to the European General Data Protection Regulation (GDPR). It increased its service offerings in Artificial Intelligence and Machine Learning. Brightcom Group was featured among Fortune India 500 for the year 2019.
BCG provides enterprise solutions and specializes in enterprise resource planning (ERP) solutions, Microsoft and open source systems development. Its Media product is a network of community and social sites. Its products and services include tools for blogging, web publishing and hosting, online games, e-mail and search. BCG’s Network of sites and services include Tripod, Angelfire, HotBot, Gamesville and WhoWhere. Life is its consumer products division. It offers them access to the billions of Internet consumers that visit its network of name brand publishers spread across the world.
BCG achieves this by selling targeted and measurable online advertising campaigns and programs for advertisers and advertising agency clients, generating client leads, online sales and increased brand recognition on their behalf with online consumers. Its digital marketing services involve marketing through various methods including video ads, display ads, search marketing, email marketing, lead generation, affiliate marketing, social media marketing and mobile marketing.
It has 22 offices worldwide with 463 employees and consultants and ranks 442 among Fortune 500 Indian companies. BCG is divided into three major divisions: (i) media (Ad-Tech and digital marketing), (ii) software services and (iii) future technologies. Its primary clients are end advertisers, agencies and publishers, but also include ad exchanges and networks. It has fourteen operating technology companies that provide services that harness the complexity, interactivity and dynamic nature of the internet to deliver technology solutions and the most successful advertising campaigns for its clients.
BCG offers affiliate marketing wherein a publisher joins an advertiser’s affiliate marketing program and agrees to distribute the advertiser’s advertisements in exchange for commissions on leads or sales generated. It offers mobile marketing to advertisers that enable brands to provide location-specific advertising to consumers on their mobile devices by using location-tracking technology. Advertisers currently implement mobile marketing through voice, internet and SMS and are looking at marketing through other value-added services shortly.
BCG offers social marketing through popular sites such as Facebook, Twitter, or website review sections, to create content that attracts attention, whether through online conversations, reviews, or other participation from consumers. The consumers then spread the advertiser’s message to other consumers, with the message resonating because it comes from another consumer, who is presumably impartial and has tried the product or service, instead of the advertiser.
BCG consolidates Ad-tech, New Media and IoT based businesses across the globe, primarily in the digital eco-system. Clients include leading blue-chip advertisers like Airtel, British Airways, Coca-Cola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever. Publishers include Facebook, LinkedIn, MSN, Twitter, and Yahoo! Brightcom works with agencies like Havas Digital, JWT, Mediacom, Mindshare, Neo@Ogilvy, Ogilvy One, OMD, Satchi & Satchi, TBWA and ZenithOptiMedia, to name a few.
BCG clients include Tremor, AoI, AppNexus, Smar+, BrightRoll, Criteo, Google, Improve Digital, CBS, MediaMath, Publir, PubMatic, Reckitt Benckiser, Spotx, Wnd, phily.com, ClarinX, OpenX, Ooyala, Fyber and Microsoft. Brightcom works with BBC, Coca-Cola, Citi Bank, Jaguar, Disney, Viacom, Western Union, Visa, MacDonald, Sony, San Miguel, Toys R Us, Toyota, Samsung, MoneyGram, Emaar, Mahindra Group, Maruti Suzuki, Levi’s, Snickers, HBO, Land Rover etc.
BCG uses various marketing techniques to develop niche campaigns for clients, including campaigns that target consumers by geography, demography, or behavior (also known as predictive or psychographic targeting), allowing clients to overlay multiple variables, such as finding customers who speak a certain language, gender and browsing history. Its niche campaigns tailor its clients’ advertisements in addition to its target consumers.
Campaign Analysis and Optimization: Throughout running client campaigns, the Company provides data to its clients in online, real-time performance reports that evaluate campaigns along several dimensions, including sales, leads, registrations, and downloads. BCG’s digital traffic management involves evaluating the client’s objectives, outlining media strategy, developing a media plan and executing the plan by negotiating rates for the desired placements.
BCG remotely stores and delivers digital advertisements to website visitors. Its ad serving system allows its clients to adjust their advertising campaigns quickly because it makes the changes on its ad serving systems and not individual websites. It collects and stores all information generated in client interactions in a data warehouse, which allows users to review and structure campaigns to improve the effectiveness of services. BCG generates real-time reporting to ensure that its clients can receive information as fast as it is generated. Real time reporting allows the Company to tailor campaigns for its clients with flexibility and efficiency.
During Q4FY20, BCG posted a consolidated PAT of Rs.107.6 crore on 11% higher sales of Rs.628 crore of EPS Rs.2.3. For FY20, it posted a 1% higher PAT of Rs.440 crore on 4% higher sales of Rs.2692 crore and an EPS of Rs.9.2.
With an equity capital of Rs.95.3 crore and reserves of Rs.2731 crore, BCG’s share book value works out to Rs.59.3. Cash stood at Rs.119 crore, loans given stood at Rs.653 crore. The value of the net block including Rs.135.8 crore of capital work-in-progress stood at Rs 158.1 cr. as at FY20. Debts were Rs.36 crore whereas other current liabilities were Rs.228 crore. The promoters hold 36.7% of the equity capital, FIIs hold 3.6%, NRI holds 11.3%, overseas corporate bodies hold 4.7%, PCBs hold 27.6% which leaves 16.1% with the investment public.
One form of affiliate marketing is co-registration, which involves an arrangement between an advertiser and an affiliate for opt-in traffic, typically taking the form of a checkbox for registrants to opt-in to receive future email announcements from the advertiser. Co-registration is a particularly effective way for advertisers to generate business because consumers choose to receive the advertising.
BCG uses affiliate management software to track high volumes of impressions, clicks, or other specified actions that could come from different publishing sources, including websites, emails, search engines, and newsletters. Recently it launched a new product ‘B-local’, a service to provide ad opportunities in local markets by working with news agencies that publish authentic news. It launched B-local in the US early this year and is beginning to see traction during the Covid-19 period.
BCG’s future technologies division consists primarily of its LIFE product and developments in artificial intelligence, machine learning and Digital Out-of-Home (DOOH) advertising. Header bidding (selling) auction was introduced with SSP ‘Compass’ – sell traffic more efficiently with lesser overload to the users and improved yield. Header Bidder- Buying: BCG’s bidder was implemented by several publishers and allows BCG to reach and compete for new traffic sources. Prebid JS adapter – Officially approved as a partner of Prebid.JS initiative and BCG is now one of the Prebid official partners in the market.
Global digital advertising spend, which is currently at ~$300 billion is estimated to cross ~$500 billion by the year 2025 at a CAGR of 15%. Globally there are over 4.38 billion internet users with a growth of 1000% from the year 2000 to 2019. Acceptance of mobile and wireless devices has enabled the growth of new digital marketing platforms and digital marketing software solutions.
With a presence in the US, Latin Americas, EU, EMEA (Member Countries of the European Economic Area (EEA) and the Asia Pacific regions, BCG works directly with publishers, advertisers, or anyone in between, providing a platform that allows commerce to take place.
BCG is expected to notch an EPS of Rs. 9.5 in FY21. At the CMP of Rs.7.33, the share trades at a P\E of just 0.8x. The share is expected to double from the current level. The 52-week high and the low of the share has been Rs 13.02\2.46.

[sateanna]

As per the latest SHP, SKR & Vijay Kancharla listed as NRIs under promoter holding. That’s the reason probably SKR is taking his salary from the US Subsidiary and not disclosing it in the financials.

[odysee]

Thank you @Logan for this clarification. It would be interesting to compare the the financial results then (when the stock traded at a high of 95) versus the financial performance for 2019-20. I understand that only financials will not determine market perception and price, but, nevertheless, it would provide some perspective on how sentiment and expectation of future performance can influence market cap. With regards.

[Shivashankar]

Huge shares transfer happening at rs 6.65.i assume from here on move on to double digit at least.

[hw_tw]

Huge jump in AdAuth figures. BCG share has increased from 2.6 to 3.1%.

I read in MC board that it could be because of increased adoption of ads.txt. If so, it should have increased for all other companies.

Organic growth at this rate is impractical. I feel either a acquisition or merging / rename of its subsidiaries or increased coverage by adauth to newer geographies would have led to such a huge jump in short span.

[sateanna]

@hw_tw Has the ranking gone up ??

[hw_tw]

@sateanna – AdAuth is different from Adzerk. They publish no.of sites / publishers and the overall percentage of sites using brightcom platform.

This information is available in public. They update it on daily basis. We can check it under AdAuth.com and search for Brightcom

[Raj]

Logan Sir, you are still cursing that fellow? They don’t understand the business model. They only know to curse others.. Please ignore the noise and let’s celebrate the jump of Bcg share in AdAuth figures..Regards.. 😊

[Logan]

Like Adauth, please check publishers list on BuiltWith also. BCG works with reputed clients and BuiltWith provides details like publisher’s contact number, Alexa ranking etc.

They give details about country wise publisher list also, most of BCG’s publishers are in the US.

[hw_tw]

Another day of high growth for Brightcom. As per AdAuth records 1500+ publishers added in a day and the market share has grown up by 0.1% to 3.2%.

One more thought of this rapid growth. Brightcom might have tied up with hosting providers with default ads.txt. Similar to default apps we get when we buy a mobile phone.

[sateanna]

Could be because of US elections ..but doubt whether these numbers will reflect in the Q1 results.

[Logan]

My guess is it’s because of labor day weekend in the US. It’s on September 7. Holidays like 4th of July, labor day, Thanksgiving, Christmas are all very important in the US and BCG’s publishers count increases in that period. Last year also there was an increase.

Q1 and Q3 will always be better for BCG because during that period there’s holiday season in the US. In Q1 there’s summer in the US and in Q3 there’s Christmas. This year it’ll be more interesting to see what happens because of the elections.

[Author]

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