Boku: Edison
TMT: Software and comp services – AIM – M cap £486m – Price 165.00p – Update
Accelerating growth outlook
Boku reported FY24 revenue growth of 20% and adjusted EBITDA growth of 22%. While direct carrier billing (DCB) maintained double-digit growth, revenue from other local payment methods (LPMs) grew 56% y-o-y, making up 26% of group revenue. With strong growth in total payment volumes (TPV) continuing year-to-date, management now expects to achieve at least 20% revenue growth this year and on average in the medium term. EBITDA margins should start to expand from FY26 due to operational leverage from ongoing investments in scaling the business. We have upgraded our forecasts, lifting our adjusted EBITDA by 5.3% in FY25 and 13.7% in FY26, resulting in normalised diluted EPS upgrades of 7.2% and 17.6% respectively.
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.