Last close As at 05/08/2026
GBP1.08
▲ 4.00 (3.86%)
Market capitalisation
GBP309m
Research: TMT
Boku has reported that volumes processed in the first two months of FY20 were 30% higher year-on-year, slightly ahead of management expectations. Volumes have not seen any negative impact from the emergence of coronavirus, and in fact could be boosted by the number of people being required to self-isolate and generally reduced social activity. Management remains confident of meeting market expectations for FY20 and will report FY19 results at the end of March.
Boku |
Trading unaffected by the coronavirus |
Trading update |
Software & comp services |
3 March 2020 |
Share price performance
Business description
Analyst
Boku is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||
Boku has reported that volumes processed in the first two months of FY20 were 30% higher year-on-year, slightly ahead of management expectations. Volumes have not seen any negative impact from the emergence of coronavirus, and in fact could be boosted by the number of people being required to self-isolate and generally reduced social activity. Management remains confident of meeting market expectations for FY20 and will report FY19 results at the end of March.
Year |
Revenue ($m) |
EBITDA* |
Diluted EPS* |
DPS |
P/E |
EV/EBITDA |
12/17 |
24.4 |
(2.3) |
(0.03) |
0.0 |
N/A |
N/A |
12/18 |
35.3 |
6.3 |
0.02 |
0.0 |
48.3 |
25.7 |
12/19e |
50.0 |
10.0 |
0.02 |
0.0 |
37.0 |
16.2 |
12/20e |
54.0 |
10.5 |
0.02 |
0.0 |
36.9 |
15.4 |
Note: *EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Boku provided an update on trading in the first two months of FY20. Total payment volume (TPV) reached $966m and was 30% higher than the same period a year ago – this is slightly ahead of management expectations (we are forecasting 27% growth in TPV for FY20). Monthly active users grew 36% y-o-y to reach 18.2 million at the end of FY20, up from the 17.8 million reported at the end of FY19. Average daily TPV in February 2020 was 2.5% higher than in January 2020 and daily average users (DAU) were 4% higher over the same period. Despite, or perhaps because of, coronavirus, DAUs in the second half of February 2020 were higher than the second half of January 2020 in South Korea, Hong Kong, Taiwan, Thailand, Kuwait, Oman, Philippines and the UAE. In China, App Annie has reported that average weekly app downloads were 40% higher in the first two weeks of February 2020 compared to average downloads for the whole of 2019. Although Boku does not operate in China, this behaviour may be replicated in other countries if self-isolation is enforced, as people use online games and streaming services in lieu of socialising outside of the home.
|
|
Research: TMT
XP entered FY20 with a strong order backlog, having managed the business through a number of issues in FY19. The COVID-19 virus represents a new challenge for the company – changes to the supply chain and the shift of some manufacturing to Vietnam should help to mitigate the risks. We have reduced our FY20 forecasts to reflect short-term supply chain issues. Longer term, it remains to be seen if the virus will have a more material impact on customer demand.