TIDMBOKU
RNS Number : 3183L
Boku Inc
12 January 2021
12 January 2021
Boku Inc.
("Boku" or the "Company" and, together with its subsidiaries,
the "Group")
Trading Update
Strong growth from Payments division
Boku Inc (AIM: BOKU), the world's leading independent carrier
commerce company, is pleased to provide the following unaudited
trading update for the financial year ended 31 December 2020 ("FY
2020").
The Group saw continued strong payments revenue growth in H2
2020, particularly in Q4, which translated into higher levels of
EBITDA due to powerful operational gearing, with Group results for
FY 2020 now expected to be ahead of the current market consensus
expectations for both revenues and EBITDA.
-- Group revenue for 2020 is expected to be at least $56.3m
(2019 $46.8m); an increase of at least 20% on 2019 underlying
revenues*
-- Group adjusted EBITDA** is expected to be at least $15.0m
(2019: $7.4m); showing an increase of over 100% on 2019, and a
further $1.5m ahead of market consensus expectations, as upgraded
following the Company's trading update on 2 December 2020
-- The Company held approximately $62.7m in cash on 31 December
2020 (31 December 2019: $35.6m). To part-fund the acquisition of
Fortumo Holdings Inc ("Fortumo"), a new $20.0m debt facility was
taken out in June 2020 and as at 31 December 2020 the Company had
reduced this facility by $7.6m to $12.4m. The average daily cash
balance, a measure which smooths out the effect of carrier and
merchant payments, was $46.7m in December 2020 (December 2019:
$22.4m)
Boku Payments division
Boku's Payments division had another very positive year with
strong operational leverage coming through:
-- Acquisition of direct carrier billing company Fortumo, for a
maximum enterprise value of $41.0m, completed on 1 July 2020
-- Group Payments revenue is expected to be at least $51.1m, an
increase of 25% on 2019's underlying figure of $40.1m* (excluding
the effect of a $3.3m non-recurring item - reported figure $43.4m)
and approximately 91% of the Group total, comprising:
o Boku Payments revenue of at least $46.7m (2019: $40.1m*)
o Fortumo Payments revenue of at least $4.4m following
acquisition on 1 July 2020
-- Total Processed Value ("TPV")*** of $6.9bn for 2020, an
increase of 37% (2019: $5.0bn). This total included $114m from
Fortumo. The blended take rate rose in H2 due to good growth in
settlement volumes plus the acquisition of Fortumo settlement model
merchants
-- The Group had 28.8 million Monthly Active Users ("MAU")
across the Boku and Fortumo payments businesses in December 2020,
an increase of 8.4 million from June 2020 and 11 million higher
(+61%) than December 2019 (17.8 million). 4.6 million of these
users were processed by Fortumo
-- Payments adjusted EBITDA** is expected to be at least $18.8m,
up 47% (2019: $12.8m) which includes Fortumo EBITDA of at least
$1.5m. As previously highlighted, COVID-19 related cost savings
have had a material one-off impact that has positively impacted
Payments EBITDA
-- Direct Carrier billing launches in 2020 included Apple, Epic
Games, Google, Microsoft, Netflix, Sony, Spotify and Tencent
-- Encouraging progress made in adding e-wallets to the Boku
payments platform, primarily in Asia, alongside carrier billing -
with 11 merchants now live across 11 wallets in seven countries.
These merchant launches include global players in music streaming
and console games. Volumes are growing strongly from a small
base
Boku Identity division
Identity revenues are expected to be in line with market
expectations.
-- Reduced Identity EBITDA** loss of approximately $3.8m (2019: $5.3m)
-- Identity revenues of at least $5.2m (2019: $6.7m) - impacted
by coronavirus and local US supply headwinds
-- Good progress on building out international carrier supply -
now live with more than 200 carriers in 60 countries
-- Contract wins in 2020 include LexisNexis, FIS (owners of Worldpay) and GDC
-- Carrying value of Identity goodwill likely to be impaired as at 31 December 2020
* Reported Group revenues of $50.1m included $3.3m of one off
revenues that related to an earlier period. Underlying Group
revenues $46.8m. Underlying Payments revenues $40.1m ($43.4m
reported)
** Adjusted EBITDA: Adjusted for stock option expenses, Forex
gains/losses and Exceptional items
*** TPV is the US$ value of transactions processed by the Boku
platform
Jon Prideaux, Boku's CEO, commented: "COVID-19 has cast a long
shadow over 2020. The pandemic has affected all aspects of business
and personal lives. Many companies have been hanging on for their
lives, others have perished in the struggle. Boku, positioned as it
is, at the intersection of mobile and digital entertainment, is one
of the fortunate companies that has been able to prosper.
"Boku's customers primarily supply digital entertainment
services: they saw demand increase and we, in turn, saw increased
volumes and increased revenues. In December, 28.8 million users
transacted through our payments systems. At peak, we processed more
than 400 transactions each second. Both are new records. Growth has
been driven by existing connections, new launches and the Fortumo
acquisition. New launches have been made for Amazon, Apple, Epic
Games, Sony, Spotify, Netflix, Tencent, Microsoft, Google and many
other smaller merchants.
"Whilst the Boku Payments Division - accounting for more than
90% of revenues - prospered in the pandemic, Boku Identity trod
water. Revenues will be at least $5.2m (lower than last year due to
carrier supply issues and the impact of COVID-19), but losses too
have reduced to c.$3.8m. There has been progress: services are now
available from more than 200 carriers in 60 countries and important
contract wins, including GDC, LexisNexis and FIS. The task for 2021
will be to roll these merchants out and increase revenues. That
said, it is likely that goodwill associated with the acquisition of
Danal in 2019 will be impaired in the full year audited
results.
"Our current expectations for both revenues (at least $56.3m)
and EBITDA (at least $15.0m) are ahead of the current market
consensus (and this on top of a $1m upgrade to the EBITDA consensus
at the beginning of December 2020 following our trading
update).
"Looking forward, we have made real progress on launching
wallets as a new payment method, initially to our existing
merchants. We're now live with 11 wallets: volume growth has been
material, albeit off a small base. Pleasingly we've also launched
with global merchants against much larger competition and have a
healthy pipeline of new deployments. It is clear that wallets will
be a material contributor to revenues and profits in future years.
In 2021 we will be investing in the platform to ensure that we can
maximise these opportunities.
"We look forward to reporting on progress with both divisions,
along with our audited results, in March 2021."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/ 2014. For the purposes of
MAR and Article 2 of Commission Implementing Regulation (EU)
2016/1055, this announcement is being made on behalf of Boku by
Keith Butcher, Chief Financial Officer of Boku.
Enquiries:
Boku, Inc.
Jon Prideaux, Chief Executive Officer +44 (0)20 3934
Keith Butcher, Chief Financial Officer 6630
Peel Hunt LLP (Nominated Adviser and Broker) +44 (0)20 7418
Edward Knight / Paul Gillam/ Nick Prowting 8900
IFC Advisory Limited (Financial PR & IR)
Tim Metcalfe / Graham Herring / Florence +44 (0)20 3934
Chandler 6630
Notes to Editors
Boku Inc. (AIM: BOKU) is a leading global provider of mobile
payment and identity solutions. Boku technology is integrated into
over 220 mobile wallets and network operators worldwide powering
mobile user authentication and mobile payments. Boku processes over
800 million transactions worth more than $7 billion annually in
nearly 70 countries. Global leaders that rely on Boku to acquire,
monetise, and protect digital consumer transactions include Apple,
Discover, Experian, Facebook, FIS, Fiserv, Google, Microsoft,
Netflix, Paypal, Sony, Spotify and Western Union.
Boku Inc. was incorporated in 2008 and is headquartered in
London, UK, with offices in various locations globally including in
the US, Mumbai, Estonia, Munich, Beijing, Paris, Sao Paulo,
Singapore, Taipei, and Tokyo.
To learn more about Boku Inc., please visit:
https://www.boku.com .
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