[Rishi_life]

@logan please share your question…I will also raise the same and email it to company so that we can get our answers…

[Logan]

@Admin, these are my queries. Please review them once and mail them to the IR department.

To the CFO

1) What constitutes other income of Rs.18.92crs for this quarter?

2) What are other receivables mentioned in the balance sheet? Are these receivables different from account receivables? For FY20 the amount was Rs.150crs and for FY19 it was Rs.530crs.

3) In the non-current assets – loans are 97crs, other financial assets are 14.5crs. In the current assets – loans are 728crs, other current assets are 170crs. Under current liabilities – other current liabilities are 227crs. There’s no proper information on these items in the balance sheet of the annual report also. In the notes section you have just mentioned these items as “Other”. It would help everyone if you could provide proper details of these items in the notes section.

We have requested the company several times to provide complete details of these items in the annual report but you haven’t taken our request seriously. It is very difficult for new investors to understand what these items are. We would really appreciate if you could provide proper details in this year’s annual report.

To the CEO

1) Congratulations on a great quarter. Can this growth rate be maintained in the coming quarters?

2) What is the update on LOC? Is it put on hold?

3) Privacy concerns related to Online Advertising is a hot topic these days. How does it impact BCG’s business going forward?

4) What is the impact of Apple changing its privacy policy (on BCG’s business)?

5) Google has announced that it would phase out third-party cookies on Chrome in the coming years. How does it affect BCG and how reliant is BCG on third-party cookies?

6) How big is BCG’s CTV business? Are there plans to grow the CTV business big or are you taking a conservative approach? Recently Magnite Inc bought SpotX to grow the CTV business. Do you have similar plans?

7) How will you utilize the PW and PO funds?

8) When are you planning to start the audio ad business?

9) We appreciate the issuance of bonus shares but we have a concern too. Because of the bonus shares (and PW shares), the free float will increase and more importantly, the EPS will come down (below 5). What are your thoughts on this?

10) Are there plans to revive the parent company’s business (standalone)? And when will you start scaling up the adtech business in India and other Asian countries?

11) Because of the PW issuance, the holding of the promoters will reduce by almost half of what it is now. Are all promoters okay with that reduction?

12) Many shareholders still haven’t received their dividends yet. What’s the reason for this?

13) Still there’s no improvement in communication with investors (wrt investor relations). You said it’d be improved by now but that has not happened. Why is it taking so much time?

14) Update on Lycos-DAUM issue.

[admin]

@Logan – Thanks so much. I have sent the questions to IR.

[Rishi_life]

@Logan…. I too shared these questions to BCG IR team..

[Follower of Logan Sir.]

@ Logan Sir,very well framed questionnaire. I for one think that if we get LOC at this juncture, It will help the company immensely. Funds hai to Dhanda hai, Nahi to manda. I wish & Pray that our company gets the LOC at the earliest.

Request you to give your inputs after the concall is over. Thank You.

[admin]

@Logan Sir, most of questions that you beautifully framed were taken in the call. Thanks so much for your contributions and continued support 🙏.

[Follower of Logan Sir.]

Adminji, Pls can you post the highlights of today’s concall. Thanks in advance.

[admin]

@kris – There is no better thing than to hear it straight from the voice of our vibrant CEO and feel the vibe.

If someone posts it on YouTube we can share that here.

Having said that I will try to post the highlights. I would request Logan, DH and other seniors to share their post conference update if any.

[nitin_asce]

I attended the concall. SKR was brimming with confidence and I could sense that a well laid plan is already in place. The highlight of the call is when being asked on nasdaq listing, Mr SKR mentioned that he meant that only when he replied to last question. To the last question he replied that there may be some dilution at subsidiary level by diluting the stakes (my interpretation on answer provided by CEO).

I am very excited from today’s call. Would wait for posts and reviews of today’s call from senior boarders.

[admin]

Sharing some of the update from Investors Conference Call – July 03 2021

About Results & Sustainability
Spectacular march end results. One thing which some investors may have missed is on comparing with last year same quarter, the revenue has grown 11% and profits grown by 30%. This is due to great job by the sales team by bringing business and the operations team have done phenomenal job by optimizing profit. Partly also due to debt reduction. Going forward would like to do the things in same way in optimizing profit.

“BCG Family”
We are seeing continuous growth in the BCG family, the investor count reaching closer to 80000 mark at the end of June.

History & The Future (For the knowledge of new family members)
Briefly touched upon the history of the company from the time of USA Greetings till where we are now. From 2010 to 2014, we have grown the business from $10 million to $100 million. We are at about similar phase today, for the next leg of growth. $390 million business currently, 14 subsidiaries, 40 countries, 60-70 billion impressions per month.

Questions received by email
1. Can this growth rate be maintained in the coming quarters?
Definitely will be looking for similar growth rate. Industry growth is also there and will be focusing on improving efficiency on sales and operation to continue this kind of growth rate. All the ducks have been lined up.

2. LOC (line of credit) Status
Very cashflow required kind of business and LOC will be required at some point of time. Almost signed in January last year but felt the terms could have been better. So had to step back, to fix few of the things, to make the company better valued as a business in order to get a better terms. That was the reason to postpone the LOC, will be revisiting within 2 quarters time.

3. Privacy concerns (google/apple privacy policy, cookies, etc.)
A hot topic which we have always been extremely careful about. We expected this early while dealing with publishers data and also when building better tech platforms. Protector product is one such. Other initiatives will also be announced later. All these concerns are well addressed.

4. Bonus shares
Postal ballot will be send to shareholders by next week for resolutions on – bonus shares, increasing authorized capital, capital clause , raising of funds). Meanwhile will apply for requisite approval from stock exchanges.

Record date of bonus issue should be between August 2nd week (i.e. after postal ballot results are out, board members meet will decide the record date). Issuance of bonus shares will be on or before August 27th 2021.

The intent of bonus shares issuance is to give back the investors who have remained through this period.

Though the EPS will drop post bonus issuance, the board believes this was a positive move considering many things – there is increase in PE multiples, market cap etc.

5. Standalone performance
Have few ideas to improve standalone business from this year itself – both organic and inorganic.

6. Investor Relation Issue (Calls/mails not getting answered)
Have improved in this front despite challenges due to pandemic situation but there is more improvement to be done, plan to set dedicated team. In terms of communicating with investor community there has been significant improvement.

7. Lycos Daum
As mentioned in the previous call, it is verbally settled , done and dusted. Very close to get the payment done, will be announced when it happens.

8. Connected TV
Already there in the ecosystem, business is growing.

9. Digital Audio
A new opportunity for us to explore, a lot of advertisers are looking for it. Traffic is there but publishers not able to connect the traffic. Recent webinar went very well and publishers are looking on to that.

In negotiation with a company in this space for acquisition and will be shared once there is some development.

Q&A with callers
– Domestic digital market is a tough area to crack. When there is scope for profitability we will definitely enter into it.

– After crossing $450 million revenues, digital marketing companies starts to get free cash flows. Until that it goes through product development and additionally we also had debt repayment to make.

– Initially we may do fund raise at the parent level but the eventual game plan is to consolidate some of the large subsidiaries together and list it. That funds can be used for acquisitions without diluting any further at the parent level.

– Have shifted our focus to get parent the right value recognition first, before getting the LOC, consolidation of the subsidiaries and its listing.

[Follower of Logan Sir.]

@ Adminji. That means CI Sir has evaluated that with time our company Promoter will list on Nasdaq. CI Sir is seldom wrong on his assessments. All said & Done good news for one & All. 3 Cheers !!!

[admin]

https://www.ndtv.com/video/business/news/lycos-internet-on-q1-earnings-378722

Please watch this Lycos Internet interview of 2015, in which Mr.Suresh Reddy shares with Prashant of NDTV Profit, his vision of overseas listing (@9.55 mins).

Unfortunately due to the international litigation with Daum, parent debt and other issues, it was put on the back burner. The global consolidation plans (organizational restructuring) unveiled in 2020 was always understood as the step towards this direction and we had discussed this many times. For instance this post by DH on Feb 2020

Attachments:

1. 

   IMG_20210703_225306.jpg
   

[jmathew]

Investors, I just want to bring your kind attention to, few points from the conference call. I may be wrong so please do your research.
1. Please try to listen to the cc completely and try to connect all the dots.
2. SKR want to revisit for LOC after a quarter or two and before that, he is eyeing a good valuation
3. LOC will add another 30 % growth
4. SKR want a good valuation for the company before consolidating a few subsidiaries and QIP
5. He is looking for a sales target of $ 450 Million plus asap which will add more cash flow.
6. Few acquisitions are expected in the coming quarters.
7. He is looking for a famous J curve too (many after a couple of years)
As per my view, a minimum decent pe after bonus issues and PW dilution are around 20 (current sector pe is 34). Timeline – I expect pe 20 by end of this year. Best wishes to all the BCG investors.

[jmathew]

With the new acquisition bcg is meeting may points mentioned above. Now we are looking for higher growth and higher eps in coming quarters.cheers and sit and enjoy the ride.

[jmathew]

Total equity after bonus + warrants+ new issue of 12 cr shares = 116 cr.
Looking forward diluted eps will be around rs 5 from the existing business plus earning from the new acquisition. We can very much expect loc by end of this year which will add another 30 % . Few more acquisitions are expected plus new businesss
I belive we are on the way to non stop rs 100 plus, even all time high.
Average industry pe is 34 and I won’t be surprised if bcg move to pe 40 plus non stop.
Enjoy the ride

[Brightspot]

Price stability is very important otherwise long term investors will only be looking at price fluctuating up and down without booking profit..after bonus issue buying interest should go up , we should be definitely discussing this with Suresh kumar today..share price coming down with pathetic volume is not looking good at the moment..however I’m still bullish on the scrip

[admin]

@Logan – Thanks for the questions. I have mailed it to IR.

[hw_tw]

First of all thanks SKR garu for giving the guidance numbers and achieving the targets as per the guidance numbers given that it was the first time and also especially when other companies were finding it difficult given the dynamic nature of the adtech industry.

Thanks for the all progress… in terms of additions to leadership team, FPIs and Mr. Shankar Sharma as Investors, time to time market updates, ESOP trust formation, Pledge reduction and the price growth we have seen in the last quarter.

Congratulations for being included in MSCI India Smallcap Index.

After looking at the numbers thought I have nothing to ask, but reminded myself that conviction is important for each and every investor and it can’t be just me or few other investors in this or other groups. We need conviction from majority. This is definitely improving since last few quarters with time to time dose of knowledge from knowledgeable people across this board and other boards. Conviction increases tremendously and stays for long when we hear something directly from the management in the Concalls and from company updates.

Given this context, here is the list of few questions from my side.

Please note, I haven’t touched upon Daum / Lycos, Receivables, CS appointment, Pledge shares, Dividend, AGM etc;

@admin – Please see whatever you feel are important ones to share to the management

On Financials and the market
– Any change in the guidance numbers for the next two quarters.

– For the current quarter since we are half way through, what is the run rate you are seeing and if there is any revision

– There is a mention of 250cr CF in Q1FY22. Could you provide revenue and PAT guidance for this quarter too

– Can we get a breakup of growth figures from Brightcom, Compass, Protector and BLocal business

– Are we planning to launch BLocal in any other countries

– What were the key drivers of revenue growth, can we attribute this to increased number of impressions or increased cost per impression or Google MCM partnership or something else

– We have seen a dip in AdAuth figures from around 52K publishers to around 47K, thought this has not impacted revenues. Any specific reason for this drop, can we see this increasing in future and most importantly how much we attribute this to BCG’s revenue

– It’s mentioned that we are clocking around 60 billion impressions per month. What’s the growth rate of this number compared to last year. If possible, could you please publish this number along with publishers, agencies count on quarterly basis

On partnerships
– How much percentage of revenue we are clocking from Google MCM partnership. Do we see more players becoming MCM partners in future and if there is any impact, how are we planning to mitigate this

– Like in the past are we targeting any country specific exclusive partnerships with players like FB, Microsoft or in Audio ad space like with Spotify or other players

On Acquisitions
– Any update on Indian DM company due diligence. What’s the outcome, are we going ahead if so, will it be possible to reveal the name of the company and tentative timeline.

– Any update on growth of this company in terms of employee count

– In general the IT Industry is facing challenges like Attrition (the Great Resignation), increased Salaries, Travel restrictions etc;. Are we seeing any similar challenges within BCG or with the target DM company

– Given that audio Adtech is evolving industry both in terms of technology and market, what kind of acquisition we are targeting at. Will this be a pure product company with smaller team or a service provider or a combination of both

What would be the size of Audio Adtech companies we are in discussion with both in terms of team size and revenues

What kind of valuations we are looking at. Given that BCG’s valuations are still low compared to other Adtech companies and given that there will definitely be a difference with the target DM or the Audio Adtech company. Any valuation higher than BCG’s current valuation might have a impact from the market. How do we plan to address this as the growth rates of the target company and the value addition which it brings on table for BCG can’t be quantified.

Are we looking at multiple acquisitions in Audio Adtech space

Will Satish Cheeti will be operating this division from India or he will be sitting in US close to customers.

Will the backend operations will be taken care by the existing team or the new DM company’s team or are we looking to form a new implementation team either in India or in other countries

Do we have any existing customers whom we can target for Audio ads or it’s a completely new set of customers

What will be the target revenues we can expect from this segment in this FY and for the next FY.

Assuming the target companies will be smaller in size operating in a single country, can we expect this due diligence process will be done quickly with internal team and any timelines for the first acquisition

What will be source of funding for this acquisition and will there be any equity dilution at the subsidiary level or will it be from the cash flows generated internally

LoC
– Will there be any change in plan on LoC process which was on hold temporarily. Does the positive CFs have any bearing on this decision

Nasdaq listing
– Last time you had mentioned that we need to get the right valuations in Indian market before we look at Nasdaq listing. Sorry for my poor memory and laziness, is this for LoC?. Anyway, as I understand from fellow knowledgeable investors that we match all the criteria for Nasdaq listing. Do you feel that this is the right time both in terms of timing and given the bucket list of to-dos on our side or we have to wait for it. Any updates on this front.

MSCI Smallcap Index Inclusion
– What will be the effect of this inclusion in terms of fund inflows. Do we expect any MFs entering.

ESOP
– Are there any shares accumulated as of date, is this planned for this or next FY

On future business
– Given that there are other forms of asset / content monitization models … like subscriptions, NFTs etc; do we have any plans to enter this space or go deep in Adtech space itself

– We are seeing from other listed Adtech company like Affle that there is also a good market scope for Cost Per Customer Acquisition model at least in India. Do we see similar scope in US or any other country and any plans to get into this space either with in-house technology or a new acquisition

– Given that we are strong on SSP side, does it make sense to also enter into DSP side too with in-house product and provide end to end capabilities to customers across

[Investor_2022]

Dear hw_tw, thank you for sending the questions.
I have passed it to ir@brightcomgroup.com

[Logan]

@hw_tw, thank you for taking the time and effort in preparing these excellent questions. You have covered every topic perfectly.

@admin, this is my list of questions. I have left out the ones which are similar to @hw_tw’s.

To the CEO,

Congratulations on a great quarter. On behalf of all the shareholders we would like to thank you for all your efforts, and for taking good decisions (even during tough times) that benefited all the stakeholders and also for answering all our queries with patience and for conducting conference calls every quarter without fail. We always look forward to these calls as we get more confidence after listening to you speak.

Queries

-Can you talk about India’s ad-tech/online advertising market. We don’t have much information about the market as it is not well covered like in the US. We wanted to know how different it is from other markets (like US, Europe, LatAm, China etc).

-Now that there’s growth in the business without additional funds, do you see the necessity of an LOC?

-Do you expect Android to make similar changes to its privacy policy like Apple/iOS did?

-What’s the impact of global supply chain issues on BCG (and it’s subsidiaries)? Does it lead to a cut in ad-budget by advertisers?

-Do you have plans to acquire a CTV ad company?

-What headwinds do you see for ad-tech companies in the future?

-Annual Report and AGM updates

[Author]

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