£316m market cap

129p last close

Boku operates a billing and identity verification platform that connects merchants with mobile network operators in more than 50 countries. It has c 180 employees, with its main offices in the US, UK, Germany and India.

Investment summary

Boku has built a platform that helps merchants to transact with consumers safely and simply in a mobile-first world. The first application enabled by this platform, direct carrier billing (DCB), continues to perform well, with 100%+ volume growth translating to 45% revenue growth and an EBITDA margin of 17.9% in FY18. The recent entry into the identity verification market broadens Boku’s addressable market and leverages the strength of its existing carrier relationships. In our view, the current share price does not capture the growth potential of the business.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 24.4 (2.3) (6.4) (3.2) N/A N/A
2018A 35.3 6.3 4.3 1.6 105.7 N/A
2019E 53.0 9.5 6.2 1.9 89.0 N/A
2020E 70.0 22.3 19.8 5.7 29.7 N/A
Last updated on 17/05/2019
Industry outlook

Direct carrier billing is an alternative payment method that uses a consumer’s mobile bill (pre-paid credit or post-paid monthly bill) as the means to pay for digital content or services such as games, music or apps. Growth in the underlying digital content markets as well as the increasing penetration of smartphones is expected to drive growth in DCB transactions.

Last updated on 17/05/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 29.1
Forecast gearing ratio (%) N/A
Price performance
Actual 9.8 44.9 29.0
Relative* 11.6 42.4 37.1
52-week high/low 184.0p/68.5p
*% relative to local index
Key management
Jon Prideaux CEO
Stuart Neal CFO
Camelia Ion-Byrne VP Finance