Boku reports decent growth despite economic headwinds

Mobile payment technology specialist Boku said in an update on Tuesday that full-year revenues for 2022 were expected to be at least $63.3m, up from $62.1m year-on-year, despite “significant” currency headwinds.

The AIM-traded firm said that on a constant currency basis, revenues were 14% higher than in 2021.

Second-half revenues were expected to be at least $33m, up from $31.4m, representing 9% growth compared to the first half of 2022, while at constant currencies, second-half revenues were 19% higher than the same period in 2021.

Adjusted EBITDA was expected to be at least $20m, up from $9.5m a year earlier and in line with market expectations, despite being impacted by currency headwinds and the company’s continued investment in its mobile-first payment network.

Total group cash at year-end on 31 December totalled $116.3m, up from $67.8m on 30 June.

Of that, $50.4m was Boku's 'own cash', with the balance being merchant cash in transit, while the group said it was debt-free.

The firm said its average daily cash balance - a measure that smooths out the effect of carrier and merchant payments - was $98.8m in December, up from $63.3m in June.

Following the disposal of Boku's Identity division on 28 February last year, the company said its results were for the continuing payments division.

Any prior period comparatives were also adjusted, and excluded the identity division results.

“While the general economic climate worsened in 2022, it was a breakthrough year for Boku - one in which local payment methods (LPMs) became the main driver of our growth, building on the solid foundations of DCB,” said chief executive officer Jon Prideaux.

“Our team is delivering superior quality in LPMs, which is being recognised by merchants.

“We launched nearly 50 local payment method merchant connections in the year.”

Prideaux said the company was now live in 19 countries across three continents, with merchants in video games, digital advertising, ridesharing, streaming music and video industries using its technology to connect to local payment methods globally, allowing the company to deliver a “second straight year” of “triple-digit growth” in those payment methods.

“With the imminent launch of Amazon on wallets, I look forward to the next year with considerable confidence.”

At 1615 GMT, shares in Boku were up 3.12% at 152.1p.

Reporting by Josh White for Sharecast.com.