agm, page-2

I attended the AGM – all the execs and chariman seem positive, but also very grounded (despite the meteoric share price rise) and focused on expanding the business.

Interested to hear they now have a team of 11 developers in Vietnam (at a monthly cost of $2k per FTE vs $9k per FTE if they were in Australia) focused on developing a pipeline of innovative mobile products.

Explained how that for a total mobile ad campaign MBE would receive 35% to 40% of the total campaign budget say ($100k) for undertaking the creative development and placing the ads on the premium inventory that MBE control (ie BBC , Rovio/Angry birds/ NZ Herald, APN radio, sport sites). MBE have first mover advantage in the Aus market.

However the real growth is going to come from the m-payments side – this is where huge operating leverage is available and can be rolled out globally (as opposed to just Aus / NZ parts of Asia for the mobile advertising). The Sprint deal is a huge milestone given the size of the market (Sprint customers can purchase MBE marketed products (ie games, apps, and potentially a huge range of new content that is being developed) and then get charged to their Sprint telephone account. MBE then gets remitted their portion from Sprint post month end.

Oct and Nov to date tracking to budget, so the $4m EBITDA should hopefully be locked down now. I get the feeling that momentum is building and back end of FY14 as Sprint comes on line could see upside.

Also interesting, and a key take out for me, was towards the end of the AGM presentation there is a list of potential risks to the business model – Chris Thorpe said that he can’t see any of these potential risks impacting MBE in the near future.

Nice to speak to / hear Management first hand, rather than have to read some of the rubbish / made up stuff posted on here, which has no resemblance to reality.

At 29c it may have got a bit ahead of itself, but at current levels, at 15 x EBITDA, looks pretty good buying to me....obviously though momentum is currently stuffed