£192.6m market cap

75.5p 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’s FY19 trading update confirmed that it met consensus expectations for revenue and EBITDA, albeit aided by recognition of one-off revenues of $3.2m in H2. The Payments business showed strong underlying revenue growth driving a 90% increase in adjusted EBITDA while the Identity business made progress in building out supply outside of the US. We have revised our forecasts and reduce group EBITDA by 40% in FY20 to $10.5m and 43% in FY21 and normalised EPS by 50% and 49%, respectively. We continue to consider the Payments business as the engine for profits while we view the Identity business as a longer-term investment in growth.

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 61.3 N/A
2019E 50.0 10.0 6.7 2.2 44.6 N/A
2020E 54.0 10.5 7.1 2.2 44.6 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 12/02/2020
Share price graph
Balance sheet
Forecast net cash (US$m) 25
Forecast gearing ratio (%) N/A
Price performance
Actual (21.9) (20.6) (11.8)
Relative* (20.5) (22.6) (16.4)
52-week high/low 147.5p/75.0p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO

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