Boku (AIM: BOKU)

Currency in GBP

Last close As at 30/03/2023

GBP1.38

−2.50 (−1.79%)

Market capitalisation

GBP400m

Boku operates a billing platform that connects merchants with mobile network operators and alternative payment methods in more than 90 countries. It has c 370 employees, with its main offices in the US, UK, Estonia, Germany and India.

Direct carrier billing (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 and real-time payments.

Boku_resized

Sector

TMT

Equity Analyst

Key Management

  • Jon Prideaux

    CEO

  • Keith Butcher

    CFO

Balance Sheet

Forecast net cash (US$m)

127.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (5.5) (1.4) 14.6
Relative (1.2) (1.7) 17.1
52 week high/low 152.5p/77.0p

Financials

Boku’s FY22 results reflect a return to pre-COVID customer behaviour and company spending, investment in its platform to support local payment methods (LPMs) and the negative effect of the strong dollar on reported results. Growth in LPM users accelerated in the year and is likely to be boosted further as the Amazon relationship develops. With plans to double revenue and grow EBITDA margins by c 18pp in the medium term, Boku looks well positioned for earnings growth over the forecast period.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 62.1 22.9 17.8 4.71 35.3 21.4
2022A 63.8 20.5 15.3 3.97 41.9 24.2
2023E 72.1 23.1 17.2 4.40 37.8 21.5
2024E 82.1 27.0 20.9 5.31 31.3 18.5

Research

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Boku — Upgrading FY20 EBITDA

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Boku – executive interview

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Boku — Strong H1 performance

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Executive interview – Boku

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Executive interview – Boku

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Boku — Growth on track

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Executive interview – Boku

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Boku — Mobile commerce enabler

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Boku — Strong finish to FY18

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Executive Interview – Boku

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Boku — Making payments pay

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Executive interview – Boku

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