Boku

LN: BOKU

£316.4m market cap

126.5p last close

Boku operates a billing and identity verification platform that connects merchants with mobile network operators in more than 50 countries. It has c 180 employees, with its main offices in the US, UK, Germany and India.

Investment summary

Boku’s H1 trading update confirmed continued strong growth in the Payments business and progress in growing the Mobile Identity business. Management’s expectations for FY19 are unchanged; we maintain our forecasts, which assume seasonally stronger payment volumes and a step-up in revenues from the identity business in H219.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 24.4 (2.3) (6.4) (3.22) N/A N/A
2018A 35.3 6.3 4.3 1.55 102.5 N/A
2019E 53.0 9.5 6.0 1.99 79.8 N/A
2020E 70.0 22.3 19.5 6.06 26.2 N/A
Last updated on 25/07/2019
Industry outlook

Direct carrier billing is an alternative payment method that uses a consumer’s mobile bill (pre-paid credit or post-paid monthly bill) as the means to pay for digital content or services such as games, music or apps. Growth in the underlying digital content markets as well as the increasing penetration of smartphones is expected to drive growth in DCB transactions. Its identity verification service enables merchants to sign up and transact with users while meeting regulatory requirements and avoiding fraud.

Last updated on 25/07/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 29.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 15.0 4.1 1.6
Relative* 13.7 3.6 4.4
52-week high/low 184.0p/68.5p
*% relative to local index
Key management
Jon Prideaux CEO
Stuart Neal CFO
Camelia Ion-Byrne VP Finance

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