Boku revenues rise despite currency headwinds
By Josh White
Date: Tuesday 21 Mar 2023
(Sharecast News) - Mobile payment solutions provider Boku reported a 3% improvement in revenue in its full-year results on Tuesday, to $63.8m, despite significant currency headwinds.
The AIM-traded company said that on a constant currency basis, revenues were 14% higher in 2022 than in 2021.
In the second half, Boku's revenues saw a 21% increase compared to the same period in 2021 on a constant currency basis.
Adjusted EBITDA for the year was reported at $20.5m, down from $22.9m in 2021, representing a 32% adjusted EBITDA margin.
The firm attributed the decrease to currency headwinds, and continued investment in its mobile-first payment network.
Boku's net profit after tax showed a significant increase, reaching $28.9m, up from $6.3m year-on-year.
The rise was primarily due to a profit of $24.6m from discontinued operations after tax.
Net profit from continuing operations before interest and tax in 2022 totalled $4.5m, down from $10.6m in 2021, as the company incurred a fair value adjustment charge of $3.47m related to Amazon warrants granted in September, and impaired the carrying value of the Fortumo brand by $1.26m.
At the end of the year, Boku held a group cash balance of $116.5m, up from $67.8m on 30 June, and the company was now debt-free.
The average daily cash balance in December reached $98.8 million, increasing from $63.3m in June.
Cash generated from operations before working capital movements during the year amounted to $22m, compared to $19.5m in 2021.
"2022 has been a breakout year - Boku's growth became primarily driven not by DCB, but by mobile wallets and account-to-account/real time payments," said chief executive officer Jon Prideaux.
"By the end of the year, nearly 7% of our monthly active users and more than double that percentage of our revenue came from these newer payment methods.
"Trading in January and February was strong and with new customer wins and launches, such as the new multi-year Amazon LPM contract, Boku is well set for further progress into the 'Big Pond'."
At 1442 GMT, shares in Boku were up 8.6% at 135.2p.
Reporting by Josh White for Sharecast.com.
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