Currency in GBP
Last close As at 09/06/2023
GBP1.48
▲ −0.50 (−0.34%)
Market capitalisation
GBP439m
Research: TMT
Boku has signed a three-year contract with Amazon to process Amazon Prime Video subscriptions made via digital wallet and other local payment methods in certain South-East Asian and African countries. As part of the contract, Amazon has been granted warrants over 11.2m Boku shares at 81.2p per share, dependent on Amazon hitting revenue targets over seven years. In our view, this contract marks major progress in the company’s strategy to widen its offering to local payment methods and strengthens the company’s relationship with Amazon.
Boku |
Digital wallet contract with Amazon |
Contract announcement |
Software and comp services |
20 September 2022 |
Share price performance Business description
Analyst
Boku is a research client of Edison Investment Research Limited |
Boku has signed a three-year contract with Amazon to process Amazon Prime Video subscriptions made via digital wallet and other local payment methods in certain South-East Asian and African countries. As part of the contract, Amazon has been granted warrants over 11.2m Boku shares at 81.2p per share, dependent on Amazon hitting revenue targets over seven years. In our view, this contract marks major progress in the company’s strategy to widen its offering to local payment methods and strengthens the company’s relationship with Amazon.
Year |
Revenue ($m) |
EBITDA* |
Diluted EPS* |
DPS |
P/E |
EV/EBITDA |
12/20 |
56.4 |
15.3 |
3.2 |
0.0 |
27.4 |
12.7 |
12/21 |
69.2 |
20.0 |
3.9 |
0.0 |
22.7 |
9.7 |
12/22e |
62.5 |
19.7 |
4.0 |
0.0 |
22.1 |
9.9 |
12/23e |
69.6 |
22.7 |
4.4 |
0.0 |
19.8 |
8.5 |
Note: *EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. FY20/21 include Identity business (sold in Q122).
Boku has signed a contract to supply its digital wallet and other local payment methods to Amazon. Boku will process payments for Amazon Prime Video subscriptions for customers located in certain countries in South-East Asia and Africa. The contract has been signed for a minimum period of three years, with annual contract renewals thereafter. As part of this contract, Boku has issued warrants to Amazon to subscribe up to 11,215,142 Boku shares (3.75% of outstanding shares), exercisable at 81.2p (the 30-trading day volume-weighted average price prior to issuing the warrants). The warrants are exercisable over 10 years. 0.25% of the 3.75% vested immediately with the remaining 3.5% vesting over seven years based on Amazon achieving certain revenue targets. The warrant costs will be matched to and offset against revenues generated from Amazon. Via Fortumo, Boku already provides direct carrier billing (DCB) services for Amazon bundling, although this is one of Boku’s less material DCB contracts. Today’s contract provides the potential for more material revenue flows from Amazon and highlights the progress Boku is making in providing its digital wallet service to a growing number of merchants. We maintain our estimates; Boku will report H122 results on 27 September.
|
|
Research: Healthcare
OpGen has announced an R&D collaboration with FIND (a global non-profit alliance for diagnostics) and the German KfW bank for its Unyvero A30 RQ platform for pathogen identification (ID) and antimicrobial resistance (AMR testing) using blood culture samples. Phase I of the R&D collaboration will involve a feasibility study, expected to conclude by end Q123. FIND will invest €700k in the study with the option to extend the collaboration, including a potential commercialisation agreement in low- and middle-income countries (LMICs). We see this collaboration as the initial impetus to expand the Unyvero franchise (particularly into developing markets), as well as an opportunity to create cross-selling/bundling for OpGen’s existing products.
Get access to the very latest content matched to your personal investment style.