Boku — H124 revenue growth supports FY24 outlook

Boku (AIM: BOKU)

Last close As at 10/10/2024

GBP1.68

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Market capitalisation

GBP504m

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Research: TMT

Boku — H124 revenue growth supports FY24 outlook

Boku reported 24% y-o-y revenue growth in H124, with both digital wallet/account-to-account (A2A) payments and direct carrier billing (DCB) payments growing at double-digit rates. Adjusted EBITDA grew 18% y-o-y with a margin of 30.1%. With ambitions to become the best localised payment partner for global commerce, Boku continues to invest in enhancing its product portfolio and strengthening its compliance and treasury functions. A pipeline of new digital wallet/A2A launches for major merchants and seasonal factors support continued strong growth in H224 and 2025. With FY24 outlook maintained, our revenue and adjusted EBITDA forecasts are unchanged.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

Boku

H124 revenue growth supports FY24 outlook

H124 results

Software and comp services

24 September 2024

Price

162.5p

Market cap

£491m

$1.33/£

Net cash ($m) at end H124

148.5

Shares in issue

302.3m

Free float

80.3%

Code

BOKU

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(8.5)

(12.4)

11.7

Rel (local)

(7.6)

(12.9)

3.2

52-week high/low

193.0p

133.5p

Business description

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

Next event

FY24 trading update

January 2025

Analyst

Katherine Thompson

+44 (0)20 3077 5700

Boku is a research client of Edison Investment Research Limited

Boku reported 24% y-o-y revenue growth in H124, with both digital wallet/account-to-account (A2A) payments and direct carrier billing (DCB) payments growing at double-digit rates. Adjusted EBITDA grew 18% y-o-y with a margin of 30.1%. With ambitions to become the best localised payment partner for global commerce, Boku continues to invest in enhancing its product portfolio and strengthening its compliance and treasury functions. A pipeline of new digital wallet/A2A launches for major merchants and seasonal factors support continued strong growth in H224 and 2025. With FY24 outlook maintained, our revenue and adjusted EBITDA forecasts are unchanged.

Year
end

Revenue
($m)

EBITDA*
($m)

Diluted EPS*
(c)

DPS
($)

P/E
(x)

EV/EBITDA
(x)

12/22

63.8

20.2

3.9

0.0

54.7

26.5

12/23

82.7

25.8

5.6

0.0

38.9

20.8

12/24e

96.6

30.6

6.8

0.0

32.0

17.5

12/25e

107.1

35.8

7.7

0.0

28.1

15.0

Note: *EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Other LPM revenue up 64% to 25% of total revenue

Boku reported H124 revenue of $47.3m, up 24% y-o-y (30% at constant exchange rates, CER). Total payment volume (TPV) of $5.8bn was 16% higher yo-y (26% CER), resulting in a take rate of 0.81% versus 0.76% in H123, reflecting the increasing proportion of digital wallet/A2A transactions. DCB revenue grew 14% y-o-y, while an 86% y-o-y increase in other local payment method (LPM) monthly active users (MAUs) drove other LPM revenue growth of 64% y-o-y. Adjusted EBITDA of $14.2m was 18% higher y-o-y, reflecting continued investment to support scaling of the business.

FY24 outlook maintained

Management expects to meet consensus forecasts for FY24, with adjusted EBITDA margins broadly flat versus 2023. We maintain our revenue and adjusted EBITDA forecasts, with changes to reported operating profit and EPS reflecting higher share-based payments and other one-off items. With all major merchants signed up to use Boku digital wallet/A2A connections, we expect the rollout of these connections to drive material growth in the short to medium term.

Valuation: LPM adoption to drive upside

Boku is trading at a premium to its peer group on FY24/25 EV/EBITDA multiples. Via a reverse discounted cash flow that uses our forecasts to FY26 and a WACC of 8%, we estimate the share price is factoring in revenue growth of 3% and average EBITDA margins of 25% for FY27–33, which in our view is extremely conservative considering the potential of the digital wallet/A2A market and the current level of profitability. A growing contribution from Amazon, continued adoption of LPM and new major merchant sign-ups would be the main drivers of longer-term growth and profits.

Review of H124 results

Exhibit 1 summarises H124 results.

Exhibit 1: H124 results highlights

$m

H124

H123

y-o-y

Revenue

47.3

38.2

24%

Gross profit

45.9

36.9

25%

Adjusted EBITDA

14.2

12.1

18%

Normalised operating profit

11.5

9.6

20%

Reported operating profit

(0.4)

2.1

N/A

Normalised net income

10.3

7.8

31%

Reported net income

(1.1)

1.8

N/A

Normalised diluted EPS ($)

0.0330

0.0239

38%

Reported basic EPS ($)

(0.0036)

0.0060

N/A

Net cash

148.5

113.9

30%

Gross margin

97.1%

96.6%

0.6pp

EBITDA margin

30.1%

31.6%

-1.6pp

Normalised EBIT margin

24.3%

25.1%

-0.8pp

Reported operating margin

-0.8%

5.6%

-6.4pp

Source: Boku, Edison Investment Research

In its July trading update, Boku expected to report H124 revenue of at least $47m and adjusted EBITDA margins broadly flat versus 2023. H124 reported revenue of $47.3m was 24% higher y-o-y and 30% higher at CER. Adjusted EBITDA increased 18% y-o-y to $14.2m with a margin of 30.1%, which compares to 31.6% in H123 and 31.2% in FY23, and met the company target for a margin of at least 30%. Underlying operating costs increased 28% y-o-y to $31.7m as the company focused on enhancing the product offering and strengthening its delivery capability to support scaling the business. This includes building a sophisticated treasury platform to manage cross-border cash flows and provide best-in-market payments capability and foreign exchange rates for merchants. The company has also strengthened the management team, adding Victoria Rogers as chief people officer, Paul Jarrett as global head of banking, and Rob Whittick as CFO to replace Keith Butcher who recently retired.

Normalised operating profit, which excludes amortisation of acquired intangibles, share-based payments and one-off items (including FX gains/losses), increased 20% y-o-y to $11.5m (margin 24.3%).

The company reported an operating loss of $0.4m due to the following items:

Share based payments: this increased to $5.8m from $4.0m a year ago. The company issues restricted stock units (RSUs), which vest in full over three years and the charge reflects the higher share price (181.5p at end H124, 193.0p high during H124 vs 136.5p at end H123 and 153.5p high during H123). This figure also includes the national insurance accrual on the RSUs which will depend on the share price at the end of the period.

Amortisation: the company has accelerated the amortisation of part of the Fortumo platform, classified as an acquired intangible. Amortisation increased to $2.8m from $2.1m a year ago. The platform should be fully amortised by the end of FY25.

FX gains/losses: the company reported a $4.8m currency loss on the revaluation of non-US dollar balances. This was a loss of $3.1m a year ago.

After net interest income of $1.5m and a fair value loss of $3.3m for the Amazon warrants (due to Boku’s higher share price), the company reported a loss before tax of $2.2m and a net loss of $1.1m.

Boku closed H124 with total cash of $148.5m, including $24.8m in restricted cash. Of total cash, the company estimates that $75.2m was ‘own cash’ (ie not money due to merchants as part of the settlement process). This compares to $54.4m at the end of H123 and $70.4m at the end of FY23. The average daily cash balance during June 2024 was $138.6m compared to $105.8m in June 2023.

The company bought back 700,000 shares in H124 at a cost of $1.6m, more than offset by the $3m received from Danal’s exercise of 1,634,699 warrants relating to the acquisition of Danal in 2019. The company’s share buyback programme expired on 30 June 2024 at which point the company held 747,451 shares in treasury. These will be used to satisfy RSUs.

Continued strong growth of digital wallets and A2A

Exhibit 2 summarises the key performance metrics of the business.

Exhibit 2: Key performance metrics

H124

H123

Growth y-o-y

TPV ($bn)

5.8

5.0

16%

Take rate

0.81%

0.76%

0.05pp

Monthly active users (MAU)

79.6m

61.2m

30%

New users

39.9m

32.7m

22%

Other Local Payment Methods (LPM):

MAUs

8.8m

4.7m

86%

New users

9.2m

6.3m

46%

Other LPM MAU/Total MAU

11.1%

7.7%

Other LPM new users/total new users

23.1%

19.3%

Revenue from other LPMs ($m)

11.9

7.3

64%

Revenue from DCB & bundling ($m)

35.4

30.9

14%

Other LPM revenue/group revenue

25%

19%

Source: Boku

Total payment volume increased 16% y-o-y (26% CER). The company launched more than 50 new connections in H124 with new and existing merchants, including Netflix, Sony and Google.

The take rate increased 5bp to 0.81% as the proportion of higher take rate digital wallet/A2A volumes increased. Overall, MAUs increased 30% y-o-y and 18% h-o-h, with other LPMs MAUs growing 86% y-o-y and 31% h-o-h. New users increased 22% y-o-y or 19% h-o-h with other LPM new users up 46% y-o-y or 23% h-o-h. Other LPMs now make up 11.1% of MAUs up from 7.7% a year ago. Revenue from other LPMs grew 64% y-o-y to $11.9m, making up 25% of group revenue versus 19% a year ago. DCB maintained strong growth, with revenue up 14% y-o-y.

Major merchant adoption of other LPMs driving strong growth

For H224 and 2025, there are multiple factors that should support continued growth of other LPM volumes and revenue. In August, the game ‘Black Myth: Wukong’ was launched in China for PlayStation 5 and Windows. Boku supports Sony in China with Alipay and WeChatPay payment options. H2 is typically seasonally stronger, partly due to the launch of EA Sports FC (previously FIFA) games in September each year. The company noted in March that all of its major merchants had signed up to implement other LPMs. We expect the rollout of these connections to drive growth in new and monthly active users, TPV and revenue over at least the next two years.

New RSU plan reflects growth ambitions

On 11 September, shareholders approved a new incentive plan for the executive management team. This is a stretch RSU plan that vests on the following basis, using the base share price of 180.4p and the tested share price (40-day volume weighted average price following the release of FY27 results):

Exhibit 3: RSU vesting schedule

Tested share price vs base share price

<3x

3x

3-5x

5x

Vesting

0%

25%

straight line basis between 25% and 100%

100%

Source: Boku

The aggregate number of shares that will be allocated to this plan will not exceed 9,090,858 shares (3% of issued share capital on 31 July 2024).

Outlook and changes to forecasts

The company maintained its outlook, expecting solid top-line growth, with adjusted EBITDA margins broadly flat versus 2023, and is confident of achieving market consensus forecasts for the full year.

We have revised our forecasts to reflect H124 results and below-EBITDA items, including amortisation, share-based payments and FX losses.

Exhibit 4: Changes to forecasts

$m

FY24e

FY24e

FY25e

FY25e

FY26e

FY26e

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Revenue

96.2

96.6

0.5%

16.8%

106.8

107.1

0.3%

10.8%

117.1

117.4

0.3%

9.6%

Gross profit

93.8

94.3

0.5%

16.9%

103.6

103.9

0.3%

10.2%

113.6

113.9

0.3%

9.6%

Gross margin

97.5%

97.6%

0.1%

0.0%

97.0%

97.0%

0.0%

-0.6%

97.0%

97.0%

0.0%

0.0%

Adjusted EBITDA

30.6

30.6

0.0%

18.5%

35.8

35.8

0.0%

17.1%

40.5

40.5

0.0%

13.1%

Adjusted EBITDA margin

31.8%

31.6%

-0.5%

0.5%

33.5%

33.4%

-0.3%

1.8%

34.6%

34.5%

-0.3%

1.1%

Normalised operating profit

23.8

23.8

-0.1%

16.7%

27.8

27.9

0.0%

16.9%

31.6

31.7

0.0%

13.6%

Normalised operating margin

24.8%

24.7%

-0.1%

0.0%

26.1%

26.0%

-0.1%

1.3%

27.0%

27.0%

-0.1%

1.0%

Reported operating profit

14.3

5.8

-59.3%

-40.0%

18.6

18.9

1.5%

224.5%

23.1

23.2

0.0%

22.4%

Reported operating margin

14.9%

6.0%

-8.9%

-5.7%

17.5%

17.7%

0.2%

11.6%

19.8%

19.7%

0.0%

2.1%

Normalised PBT

26.5

26.9

1.5%

21.8%

30.5

30.9

1.4%

15.0%

34.3

34.7

1.2%

12.3%

Reported PBT

17.0

5.6

-67.0%

-50.9%

21.3

22.0

3.3%

292.5%

25.8

26.2

1.6%

19.3%

Normalised net income

20.9

21.2

1.5%

21.8%

24.1

24.4

1.4%

15.0%

27.1

27.4

1.2%

12.3%

Reported net income

13.9

5.3

-62.0%

-47.6%

16.8

17.4

3.3%

228.3%

20.4

20.7

1.6%

19.3%

Normalised basic EPS ($)

0.070

0.071

1.5%

21.6%

0.080

0.081

1.4%

13.8%

0.089

0.090

1.2%

11.2%

Normalised diluted EPS ($)

0.067

0.068

1.5%

21.6%

0.076

0.077

1.4%

13.9%

0.085

0.086

1.2%

11.2%

Reported basic EPS ($)

0.047

0.018

-62.0%

-47.7%

0.056

0.058

3.3%

225.0%

0.067

0.068

1.6%

18.1%

Net debt/(cash) excluding restricted cash

(178.3)

(164.5)

-7.7%

40.2%

(213.7)

(200.1)

-6.3%

21.7%

(252.1)

(238.8)

-5.3%

19.3%

Net debt/(cash)

(199.4)

(198.0)

-0.7%

31.2%

(234.8)

(233.6)

-0.5%

18.0%

(273.2)

(272.3)

-0.3%

16.6%

TPV ($bn)

11.94

11.96

0.1%

13.7%

13.07

13.09

0.1%

9.5%

14.18

14.20

0.1%

8.5%

Take rate

0.81%

0.81%

0.00%

0.02%

0.82%

0.82%

0.00%

0.01%

0.83%

0.83%

0.00%

0.01%

Source: Edison Investment Research


Exhibit 5: Financial summary

$m

2019

2020

2021

2022

2023

2024e

2025e

2026e

31-December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

50.1

56.4

62.1

63.8

82.7

96.6

107.1

117.4

Cost of Sales

(5.6)

(4.9)

(1.6)

(1.8)

(2.1)

(2.4)

(3.2)

(3.5)

Gross Profit

44.6

51.5

60.5

62.0

80.7

94.3

103.9

113.9

Adjusted EBITDA

 

 

10.7

15.3

22.9

20.2

25.8

30.6

35.8

40.5

Normalised operating profit

 

 

4.5

11.6

18.6

15.8

20.4

23.8

27.9

31.7

Amortisation of acquired intangibles

(1.6)

(2.2)

(1.9)

(1.0)

(2.2)

(2.2)

(1.3)

(0.9)

Exceptionals

(0.3)

(21.1)

0.4

(1.6)

(0.9)

(5.0)

0.0

0.0

Share-based payments

(6.8)

(4.9)

(6.4)

(5.2)

(7.6)

(10.8)

(7.6)

(7.6)

Reported operating profit

(4.1)

(16.7)

10.6

8.0

9.7

5.8

18.9

23.2

Net Interest

(0.4)

(0.6)

(0.7)

(0.5)

1.6

3.0

3.0

3.0

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

(3.5)

0.1

(3.3)

0.0

0.0

Profit Before Tax (norm)

 

 

4.1

11.0

17.8

15.3

22.1

26.9

30.9

34.7

Profit Before Tax (reported)

 

 

(1.3)

(17.3)

9.9

4.1

11.4

5.6

22.0

26.2

Reported tax

1.7

(1.5)

1.9

0.2

(1.3)

(0.3)

(4.6)

(5.5)

Profit After Tax (norm)

3.2

8.8

14.3

12.2

17.4

21.2

24.4

27.4

Profit After Tax (reported)

0.4

(18.8)

11.8

4.3

10.1

5.3

17.4

20.7

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Discontinued operations

0.0

0.0

(5.5)

24.6

0.0

0.0

0.0

0.0

Net income (normalised)

3.2

8.8

14.3

12.2

17.4

21.2

24.4

27.4

Net income (reported)

0.4

(18.8)

6.3

28.9

10.1

5.3

17.4

20.7

Basic ave. number of shares outstanding (m)

246.8

273.8

294.0

298.3

297.9

298.6

301.6

304.6

EPS - basic normalised ($)

 

 

0.01

0.03

0.05

0.04

0.06

0.07

0.08

0.09

EPS - diluted normalised ($)

 

 

0.01

0.03

0.05

0.04

0.06

0.07

0.08

0.09

EPS - basic reported ($)

 

 

0.00

(0.07)

0.02

0.10

0.03

0.02

0.06

0.07

Dividend ($)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Revenue growth (%)

42.2

12.5

10.1

2.7

29.7

16.8

10.8

9.6

Gross Margin (%)

88.9

91.3

97.5

97.2

97.5

97.6

97.0

97.0

EBITDA Margin (%)

21.3

27.1

36.9

31.7

31.2

31.6

33.4

34.5

Normalised Operating Margin

9.0

20.5

30.0

24.7

24.7

24.7

26.0

27.0

BALANCE SHEET

Fixed Assets

 

 

52.2

69.8

84.4

77.2

77.3

77.8

77.5

77.1

Intangible Assets

46.8

65.6

63.1

56.2

56.6

57.2

56.9

56.4

Tangible Assets

3.5

3.8

5.3

3.9

3.5

3.4

3.4

3.5

Investments & other

1.8

0.5

16.0

17.0

17.1

17.1

17.1

17.1

Current Assets

 

 

89.2

155.2

145.3

212.8

299.5

348.6

403.9

460.5

Stocks

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Debtors

53.6

92.5

82.9

90.5

148.5

150.5

170.1

188.0

Cash & cash equivalents

34.7

61.3

56.7

99.6

117.4

164.5

200.1

238.8

Other

0.9

1.4

5.8

22.8

33.6

33.6

33.6

33.6

Current Liabilities

 

 

(81.8)

(139.7)

(122.1)

(157.8)

(234.9)

(263.8)

(293.8)

(321.7)

Creditors

(78.0)

(136.8)

(119.6)

(156.3)

(233.0)

(261.9)

(291.9)

(319.8)

Tax and social security

0.0

0.0

0.0

(0.2)

(0.5)

(0.5)

(0.5)

(0.5)

Short term borrowings

(2.1)

(1.4)

(1.1)

0.0

0.0

0.0

0.0

0.0

Other

(1.7)

(1.4)

(1.3)

(1.3)

(1.4)

(1.4)

(1.4)

(1.4)

Long Term Liabilities

 

 

(2.6)

(13.6)

(12.3)

(8.7)

(8.4)

(8.4)

(8.4)

(8.4)

Long term borrowings

0.0

(10.8)

(6.7)

0.0

0.0

0.0

0.0

0.0

Other long term liabilities

(2.6)

(2.8)

(5.7)

(8.7)

(8.4)

(8.4)

(8.4)

(8.4)

Net Assets

 

 

57.0

71.8

95.3

123.6

133.5

154.3

179.2

207.5

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Shareholders' equity

 

 

57.0

71.8

95.3

123.6

133.5

154.3

179.2

207.5

CASH FLOW

Op Cash Flow before WC and tax

7.4

15.3

22.9

20.2

25.8

30.6

35.8

40.5

Working capital

3.0

20.1

(7.1)

27.9

17.9

26.9

10.4

10.0

Exceptional & other

(1.3)

(3.8)

(3.5)

1.8

(2.7)

(5.0)

0.0

0.0

Tax

(0.1)

(0.3)

(0.4)

(0.3)

(0.3)

(0.3)

(4.6)

(5.5)

Net operating cash flow

 

 

9.0

31.3

11.9

49.7

40.6

52.1

41.6

45.0

Capex

(2.1)

(3.4)

(5.8)

(5.3)

(5.9)

(8.1)

(7.7)

(8.1)

Acquisitions/disposals

(0.7)

(36.6)

0.0

26.5

5.6

0.0

0.0

0.0

Net interest

(0.4)

(1.0)

(0.6)

(0.2)

1.6

3.0

3.0

3.0

Equity financing

0.6

26.2

1.1

(1.4)

(7.1)

1.4

0.0

0.0

Dividends

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

(1.5)

(2.6)

(6.1)

(12.7)

(18.0)

(1.3)

(1.3)

(1.3)

Net Cash Flow

4.857

13.8

0.5

56.6

16.9

47.1

35.6

38.7

Opening net debt/(cash)

 

 

(28.9)

(32.6)

(49.0)

(48.8)

(99.6)

(117.4)

(164.5)

(200.1)

FX

(1.1)

1.3

(0.6)

(5.6)

0.9

0.0

0.0

0.0

Other non-cash movements

(0.0)

1.2

(0.1)

(0.3)

0.0

0.0

0.0

0.0

Closing net debt/(cash)*

 

 

(32.6)

(49.0)

(48.8)

(99.6)

(117.4)

(164.5)

(200.1)

(238.8)

Source: Boku, Edison Investment Research *Net cash excluding restricted cash


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Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

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Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

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This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom


General disclaimer and copyright

This report has been commissioned by Boku and prepared and issued by Edison, in consideration of a fee payable by Boku. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

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