£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$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (fd) (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2018A | 35.3 | 6.3 | 4.3 | 1.55 | 77.3 | N/A |
| 2019A | 50.1 | 10.7 | 4.1 | 1.20 | 99.8 | N/A |
| 2020E | 55.1 | 12.3 | 8.0 | 2.16 | 55.4 | N/A |
| 2021E | 66.4 | 17.7 | 12.3 | 3.18 | 37.7 | N/A |
Industry outlook
DCB is an alternative payment method that uses a consumer’s mobile bill as the means to pay for digital content or services such as games, music or apps. Growth in the underlying digital content markets as well as the increasing penetration of smartphones is expected to drive growth in DCB transactions. Boku is the dominant DCB player serving the largest merchants such as Apple, Sony, Facebook, Spotify and Netflix. Boku’s identity verification service enables merchants to sign up and transact with users while meeting regulatory requirements and avoiding fraud.
Last updated on 24/09/2020
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Share price graph
Balance sheet |
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| Forecast net cash (US$m) | 17.8 |
| Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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| Mark Britto | Chairman |
| Jon Prideaux | CEO |
| Keith Butcher | CFO |
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