REG - Boku Inc - Trading Update

BokuAnnouncement

24/07/2025 07:00

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RNS Number : 3167S  Boku Inc  24 July 2025

24 July 2025

 

Boku, Inc.

("Boku" or the "Company" and, together with its subsidiaries, the "Group")

Trading update for the six months ended 30 June 2025

Empowering merchant growth through our global LPM network and strategic
execution

Boku (AIM: BOKU), a global network of localised payment solutions, is pleased
to announce the following unaudited trading update for the six months ended 30
June 2025 ("H1 2025").

Financial Highlights

·     Total Group revenue for H1 2025 is expected to be in excess of $63
million, representing organic growth of c.34% (H1 2024: $47.3 million). This
represents c.37% growth on a constant exchange rate(1) basis.

·     Direct Carrier Billing revenue, which includes payments and
bundling, continued to deliver solid growth of c.16% on H1 2024.

·     Revenue from Digital Wallets and Account to Account schemes
increased by c.90% on H1 2024 reflecting continued merchant and customer
uptake.

·     Adjusted EBITDA(2) is anticipated to be at least $21 million, up
c.50% on the prior comparative period (H1 2024: $14.2 million), reflecting an
adjusted EBITDA margin(3) of c.33% (H1 2024: 30.1%).

·     Total Group cash increased by c. 29% to c.$192 million at 30 June
2025, up from $148.5 million at 30 June 2024 and $177.3 million at 31 December
2024.

·      Boku's own cash(4) grew by 16% to c.$87 million at 30 June 2025,
up from $75.2 million at 30 June 2024 and $80.2 million at 31 December 2024.
This includes the impact of the repurchase of 5.8 million Boku shares during
H1 2025 at a cost of $12.3 million.

·     Approximately $3 million of total Group revenue relates to
specific launch phase pricing during H1 2025, which has since normalised and
is not expected to recur in H2 2025. Excluding this element of revenue:

o  Underlying organic revenue growth would have been c.27% or c.29% on a
constant exchange rate basis.

o  Revenue from Digital Wallets and Account to Account schemes would have
increased by c.60%.

o  Adjusted EBITDA would have increased by c.28% and adjusted EBITDA margin
remained above 30%, in line with previously announced guidance.

·     Foreign exchange related costs of c.$1.4 million have now been
incorporated into our adjusted EBITDA alternative performance measure (APM),
reflecting a refined methodology to better align revenue with associated
costs. The impact of this change is now reflected in adjusted EBITDA and
adjusted EBITDA margin for the current period.

Operational Highlights

·      This financial performance has been driven by Boku delivering an
increasing number of LPM connections for both new and existing merchants,
enabling their access to a broader base of customer accounts worldwide,
facilitating their continued expansion.

·     Monthly Active Users(5) of the Boku platform increased by c.20% to
over 95 million in June 2025 (June 2024: 79.6 million).

·    Total Payment Volume ("TPV")(6) increased by c. 27% to over $7
billion (H1 2024: $5.8 billion). On a constant exchange rate basis, TPV was
c.26% higher than H1 2024.

Outlook

In H1 2025, Group revenue grew by 34% to c.$63 million, or 27% on an
underlying basis excluding the impact of specific launch-phase pricing. For
the full year, the year-on-year revenue growth rate is expected to be at least
in line with the underlying H1 growth rate, implying full-year revenue ahead
of consensus(7).

As contributions from currency revenue services become increasingly material,
we are now including the associated foreign exchange related costs within our
adjusted EBITDA calculations as described above. On a like for like basis,
adjusted EBITDA would be higher, however, when including these foreign
exchange related costs, adjusted EBITDA is expected to be in line with current
consensus, which excludes these costs.

Previous guidance in relation to organic revenue growth exceeding 20% on a
compound annual growth rate (CAGR) basis over the medium term and achieving
adjusted EBITDA margins in excess of 30% remain unchanged.

Board Update

As announced separately, the Company is delighted to welcome Richard Pennycook
CBE as Chair of the Board, succeeding Dr Richard Hargreaves.

Stuart Neal, Chief Executive Officer, commented:

"Boku has continued its positive trajectory in the first half of 2025, with
robust growth in underlying organic revenue and adjusted EBITDA. This reflects
strong strategic execution, supported by the rapid market transition from
traditional card payments to Local Payment Methods (LPMs). We remain focused
on driving growth through deepening relationships with existing global
merchants by increasing their connections to our LPM network and offering new
capabilities in key markets. At the same time, we are laying the groundwork to
attract new merchants through a combination of direct sales and strategic
channel partnerships, extending our footprint and reinforcing our global
positioning. It has been great to see exciting new merchants come on board in
H1 2025, reflecting solid progress in our commercial efforts. We enter the
second half with strong momentum, a clear vision, and upgraded ambitions for
global growth as we continue our journey to become the world's best localised
payments partner for global commerce."

 

Capital Markets Event

As previously announced, the Company will be hosting a Capital Markets Event
for institutional investors and research analysts on Thursday 16 October 2025,
with presentations starting at 3pm at The Courthouse Hotel, 335-337 Old St,
London, EC1V 9LL. Institutional investors and analysts interested in attending
are invited to register their interest by contacting
boku@investor-focus.co.uk.

 

(1) Constant exchange rate ("CER") is calculated by applying the monthly
average foreign exchange rates in the prior year to the current year results.
This is an alternative performance measure ("APM").

(2) Adjusted EBITDA is a measure of profitability from continuing operations
which is calculated as operating profit before non-recurring other income,
depreciation and amortisation, share-based payments expense, foreign exchange
gains/losses unrelated to the cost of providing services and exceptional
items. This is an APM.

(3) Adjusted EBITDA margin is calculated as adjusted EBITDA over revenue for
the year. This is an APM.

(4) Own cash is calculated as cash held plus gross amounts due to Boku from
issuers and merchants less amounts owed to merchants. This is an APM.

(5) A Monthly Active User ("MAU") is one who has undertaken one or more
successful payment transactions or who has an active bundle within the month
in question. Users who have registered and still have an active payment method
on file are not defined as active unless they have successfully transacted.

(6) Total Payment Volume ("TPV") is total value transacted through the system
quantified in US dollars. For payments, this is the total amount successfully
transacted by consumers translated into USD at average FX rates for the month.
For bundling transactions, it represents the total retail value of the
bundles. In some cases, this value is inferred from revenue.

(7) FY 2025 consensus as of 18(th) July 2025 is revenue $119.7m and adjusted
EBITDA of $38.3m

Enquiries:

Boku, Inc.

Stuart Neal, Chief Executive Officer
                    +44 (0)20 3934 6630

Robert Whittick, Chief Financial Officer

Investec Bank plc (Nominated Adviser and Joint Broker)         +44
(0)20 7597 5970

Nick Prowting / Kamalini Hull / Patrick Robb

Peel Hunt LLP (Joint Broker)
 
+44 (0)20 7418 8900

Neil Patel / Ben Cryer / Kate Bannatyne

IFC Advisory Limited (Financial PR & IR)
               +44 (0)20 3934 6630

Tim Metcalfe / Graham Herring / Florence Staton

Notes to Editors

Boku Inc. (AIM: BOKU) is a global network of localised payment solutions.
Through a single integration, Boku provides access to a comprehensive network
of digital wallets, direct carrier billing, and account-to-account (A2A)
real-time payment schemes - reaching over 7 billion consumer payment accounts
worldwide.

Merchants that trust Boku to simplify sign-up, acquire new paying users and
prevent fraud include global tech giants such as Amazon, Meta, Google,
Microsoft, Netflix, Sony, Spotify and Tencent.

 

Boku Inc. was incorporated in 2008 and is headquartered in London, UK, with
offices in the US, India, Brazil, China, Estonia, France, Germany, Indonesia,
Ireland, Japan, Singapore, Spain, Taiwan and Vietnam.

 

To learn more about Boku Inc., please visit: https://www.boku.com
(https://www.boku.com/)

 

 

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