£258.6m market cap

91.5p 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 300 employees, with its main offices in the US, UK, Estonia, Germany and India.

Investment summary

Restrictions relating to COVID-19 have had a mixed effect on Boku’s H120 performance, with the Payments business benefiting from increased demand for digital content, while some Identity customers saw weaker demand for their services. Despite this, Boku reported adjusted revenue growth of 9% y-o-y and, demonstrating the operational leverage of the business, adjusted EBITDA growth of 84% y-o-y. With guidance unchanged for FY20, we maintain our EBITDA forecasts.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 35.3 6.3 4.3 1.55 77.3 N/A
2019A 50.1 10.7 4.1 1.20 99.8 N/A
2020E 55.1 12.3 8.0 2.16 55.4 N/A
2021E 66.4 17.7 12.3 3.18 37.7 N/A
Industry outlook

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. Growth in the underlying digital content markets as well as the increasing penetration of smartphones is expected to drive growth in DCB transactions. Boku is the dominant DCB player serving the largest merchants such as Apple, Sony, Facebook, Spotify and Netflix. Boku’s identity verification service enables merchants to sign up and transact with users while meeting regulatory requirements and avoiding fraud.

Last updated on 24/09/2020
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Share price graph
Balance sheet
Forecast net cash (US$m) 17.8
Forecast gearing ratio (%) N/A
Price performance
Actual (2.7) (9.0) (12.0)
Relative* 2.1 (4.8) 8.7
52-week high/low 105.0p/49.0p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO

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