Boku (AIM: BOKU)

Last close As at 28/05/2024

GBP1.93

−0.50 (−0.26%)

Market capitalisation

GBP580m

Boku operates a billing platform that connects merchants with mobile network operators and alternative payment methods in more than 70 countries. It has c 450 employees, with its main offices in the US, UK, Estonia, Germany and India.

Non-card-based payments are growing faster than card-based payments, fuelled by the use of digital wallets, account-to-account payments and other local payment methods such as direct carrier billing. Boku supports global merchants to offer local payment methods to take advantage of this trend.

Latest Insights

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TMT | Update

Boku — Upgrading on strong finish to FY23

TMT | Update

Boku — Upgraded outlook for FY23

TMT | Update

Boku — Strong H1 drives upgrades

Boku_resized

Sector

TMT

Equity Analyst

Key Management

  • Keith Butcher

    CFO

  • Stuart Neal

    CEO

Balance Sheet

Forecast net cash (US$m)

175.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.3 18.8 34.0
Relative 0.5 9.9 24.7
52 week high/low 193.0p/131.0p

Financials

Boku’s strategy to widen its offering within the local payment method (LPM) market accelerated FY23 revenue growth to 30%, with 15% growth from the core direct carrier billing business and supplemented by 153% growth from eWallets and real-time payments. EBITDA grew 27% y-o-y as the company continued to invest in building out its LPM network from a technological and regulatory perspective. With all major merchants using or planning to use Boku’s wider portfolio of payment methods, the company should benefit from faster growth in the non-card payment market and be able to leverage the investment it has made in its mobile-first platform to drive growth in earnings and cash generation.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 63.8 20.2 15.3 3.95 60.3 35.2
2023A 82.7 25.8 22.1 5.56 42.9 27.5
2024E 95.0 31.7 27.5 6.93 34.4 22.4
2025E 105.0 36.9 31.6 7.88 30.2 19.5

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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