£198.3m market cap

81.5p last close

Boku is the largest independent direct carrier billing (DCB) company. It operates a billing platform that connects merchants with mobile network operators (MNOs) in more than 50 countries. Its main offices are in the US, the UK, Germany and India.

Investment summary

Boku has confirmed that total processed value (TPV), monthly active users, revenues and EBITDA saw strong growth in FY18, and it expects to report metrics at least in line with Edison and consensus expectations. This provides support for our FY19/FY20 growth forecasts for the core payments business. The recently acquired Danal business provides a second path to extend Boku’s growth in the longer term, while close co-operation with Danal Korea could open up payment opportunities in Korea. We make no changes to estimates, pending FY18 results due in March.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 17.2 (12.3) (15.0) (8.02) N/A N/A
2017A 24.4 (2.3) (6.4) (3.22) N/A N/A
2018E 34.8 5.4 3.2 1.19 89.1 N/A
2019E 52.0 6.7 4.9 1.54 68.8 N/A
Last updated on 19/03/2019
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.

Last updated on 19/03/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 19.2
Forecast gearing ratio (%) N/A
Price performance
Actual (3.6) 16.4 (1.2)
Relative* (4.7) 6.6 (2.3)
52-week high/low 184.0p/68.5p
*% relative to local index
Key management
Jon Prideaux CEO
Stuart Neal CFO
Camelia Ion-Byrne VP Finance