Boku

LN: BOKU

£284.5m market cap

113.5p 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 reported 39% year-on-year revenue growth in H1: 19% growth from the Payments business was boosted by the newly acquired Identity business. This translated to 69% growth in EBITDA and 64% growth in normalised operating profit, despite investment in the Identity business. Management expects a stronger H2 and is maintaining FY19 guidance. We have taken a more cautious approach to our Identity forecasts reflecting longer sales cycles; this reduces our FY19–21 forecasts, although we expect the company to meet FY19 guidance.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 24.4 (2.3) (6.4) (3.22) N/A N/A
2018A 35.3 6.3 4.3 1.55 89.0 N/A
2019E 52.0 9.3 6.0 1.82 75.8 N/A
2020E 68.1 20.1 16.6 4.78 28.9 N/A
Last updated on 18/09/2019
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. Its identity verification service enables merchants to sign up and transact with users while meeting regulatory requirements and avoiding fraud.

Last updated on 18/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 27.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.6 (9.6) (35.7)
Relative* 3.0 (9.8) (35.5)
52-week high/low 183.0p/68.5p
*% relative to local index
Key management
Jon Prideaux CEO
Stuart Neal CFO
Camelia Ion-Byrne VP Finance

Content on Boku