Boku progresses with ‘exceptional growth’ in 2019 
Vox Markets
RNS Newswire
13:06, 26th March 2020

London-listed commerce group, Boku  (AIM:BOKU FOLLOW) told investors on Thursday that 2019 had proven to be another year of “exceptional growth” during FY19 

The group, which operates its technology platform to more than 190 mobile network operators worldwide, said it had boosted revenue 42% for the period to $50.1m from $35.3m. Adjusted EBIDTA was up by 17% to $7.4m, excluding a non-recurring item of $3.3m* in order to reflect ‘its underlying performance.’ 

The group said its payments division had delivered ‘a very solid performance’ with revenues growing from $6.3m to $43.5m with Adjusted EBITDA growing by over 100% to $12.7m. 

Meanwhile, the group’s identity business, which was established after it bought Danal last January for $25.1m, saw revenues rise by 26% to $6.7m and adjusted LBITDA improved to a loss of $5.3m versus $6.4m for FY18. 

FY19 Financial Highlights 

  • Total Revenue up 42% to $50.1 million (FY18: $35.3 million) 

  • Adjusted EBITDA* up 17% to $7.4 million (FY18: $6.3 million). 

  • *Revenue includes $3.3m of non-recurring Payments Revenue; to better reflect underlying performance, this non-recurring revenue is excluded from Adjusted EBITDA 

  • Net Profit after Tax of $0.4 million compared with Net Loss after tax of $4.3 million for 2018 

  • Closing cash balances as at 31 December 2019 of $35.6 million (1H19: $27.9m) 

  • Strong working capital control meant monthly average cash balances were broadly flat across December 2018, June 2019 and December 2019 

Shares in Boku were trading 12% higher at 71.5p during Thursday trading. 

The company attributes its continued growth to the popularity of the Boku Platform, which attracts around one and a half million new paying users a month. In December 2019, 17.8m users bought a product through the platform, which was 4.3 million more than in the same period last year, generating more than $500m in total transaction value. 

The Boku platform is currently employed by a range of global technology companies including, but not limited to, Apple, Facebook, Google and Spotify. 

Jon Prideaux, Chief Executive of Boku told investors that demand for the platform “remained strong”, including from global customers, and that the company is “well positioned {to maintain robust trading] in difficult times." 

In early March, Boku reported that it had seen a strong start to the year partly due to the spread of the coronavirus. 

Commenting today, Prideaux added, “As our services are delivered digitally, supply has not been disrupted; on the demand-side, the more people stay at home the more they play games, download apps and use streaming services. 

We have seen definite evidence of recent increased volumes in countries with social distancing measures in place.” 

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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