Market Cap£352m

Last Close 118p

Boku operates a billing platform that connects merchants with mobile network operators and alternative payment methods in more than 90 countries. It has c 350 employees, with its main offices in the US, UK, Estonia, Germany and India.

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Investment summary

Boku reported H122 revenue and adjusted EBITDA in line with its July trading update. During H122, payments made via local payment methods (LPMs) grew significantly: LPM new users and monthly active users grew six times and eight times respectively versus H121, with total payment volumes from LPMs increasing 11 times y-o-y. Since the end of H1, the company has signed a multi-year contract with Amazon for its LPM services and rolled out eWallets in China for another major merchant. We maintain our forecasts and highlight that underlying growth for the business remains strong, despite currency headwinds.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 56.4 15.3 11.0 3.21 41.9 N/A
2021A 69.2 20.0 14.7 3.87 34.8 N/A
2022E 62.5 19.7 15.2 3.97 33.9 N/A
2023E 69.6 22.7 17.4 4.42 30.4 N/A
Industry outlook

Direct carrier billing (DCB) is an alternative payment method that uses a consumer’s mobile bill as the means to pay for digital content or services such as games, music or apps. Boku is the dominant DCB player, serving the largest merchants such as Apple, Sony, Facebook, Spotify and Netflix, and is expanding into alternative payment methods such as digital wallets and real-time payments.

Last updated on 05/10/2022
Content on Boku
Boku – Wider payments reach drives underlying growth
TMT | research Update | 29 September 2022
boku 2
Boku – Digital wallet contract with Amazon
TMT | research Flash note | 20 September 2022
boku 2
Boku – Currency moves mask underlying growth
TMT | research Update | 27 July 2022
boku 2
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Share price graph
Balance sheet
Forecast net cash (US$m) 82.3
Forecast gearing ratio (%) N/A
Price performance
Actual 24.9 14.6 (40.1)
Relative* 29.6 15.0 (37.1)
52-week high/low 195.5p/77.0p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO