£499.6m market cap

170p last close

Boku operates a billing and identity verification platform that connects merchants with mobile network operators in more than 80 countries. It has c 300 employees, with its main offices in the US, UK, Estonia, Germany and India.

Investment summary

Boku reported strong results for FY20, with adjusted revenue and EBITDA growth of 20% and 106% respectively. Trading year to date has been strong for both businesses and management is confident of meeting expectations for FY21. The evolution of the platform to address the wider alternative payments market provides upside potential to our forecasts and the share price. Boku recently announced a mobile identity partnership with French carriers, increasing the addressable market for its identity services.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 50.1 10.7 4.1 1.20 196.6 N/A
2020A 56.4 15.3 11.0 3.21 73.5 N/A
2021E 66.5 17.7 12.2 3.15 74.9 N/A
2022E 77.8 21.0 15.1 3.87 61.0 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. Boku is the dominant DCB player, serving the largest merchants such as Apple, Sony, Facebook, Spotify and Netflix, and is expanding into alternative payment methods such as digital wallets. Boku’s identity verification service enables merchants to sign up and transact with users while meeting regulatory requirements and avoiding fraud.

Last updated on 12/05/2021
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Share price graph
Balance sheet
Forecast net cash (US$m) 50.4
Forecast gearing ratio (%) N/A
Price performance
Actual (5.8) 9.0 111.2
Relative* (7.1) 2.6 74.5
52-week high/low 190.0p/78.5p
*% relative to local index
Key management
Mark Britto Chairman
Jon Prideaux CEO
Keith Butcher CFO

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