£450m market cap

156.5p 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

Boku continued to see strong demand after its early December trading update, finishing the year with revenue and EBITDA ahead of consensus expectations. The Payments business was the driver of revenue upside, and lower costs in both businesses contributed further to EBITDA upside. We have revised our forecasts to reflect the strong H220 performance, upgrading FY20 normalised EPS by 15.5%. We maintain our FY21/22 forecasts as we expect the company to revert to pre-COVID-19 spending behaviour when lockdown restrictions are removed.

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 1.55 138.0 N/A
2019A 50.1 10.7 4.1 1.20 178.2 N/A
2020E 56.3 15.0 10.6 2.89 74.0 N/A
2021E 66.4 17.7 12.2 3.15 67.9 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 23/02/2021
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Share price graph
Balance sheet
Forecast net cash (US$m) 50.4
Forecast gearing ratio (%) N/A
Price performance
Actual 10.2 34.9 122.0
Relative* 10.9 28.6 143.8
52-week high/low 161.0p/49.0p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO

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