Boku

LN: BOKU

£239.6m market cap

95p 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. The company has since announced that it has partnered with GoPay to offer its e-wallet as a payment method in Indonesia.

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 77.4 N/A
2019E 52.0 9.3 6.0 1.82 65.9 N/A
2020E 63.1 17.6 14.1 4.06 29.5 N/A
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 11/11/2019
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 (4.5) (18.1) (31.4)
Relative* (5.7) (19.7) (33.8)
52-week high/low 147.5p/68.5p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO

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