Boku revenues, earnings rise in first half

Mobile payments and identity provider Boku reported a 38% rise in group revenues for its first half on Tuesday, to $34.2m, with organic group revenue growth strong at 21%, excluding acquired Fortumo revenues.

The AIM-traded firm said group adjusted EBITDA was 61% higher year-on-year for the six months ended 30 June at $10.3m, while operating profit increased to $2.3m from $0.2m.

Net Profit before tax rose to $1.9m, meanwhile, from $0.09m in the first half of 2020.

It said the 12-month earnout period relating to the 2020 acquisition of Fortumo Holdings completed on 30 June, with $5.4m held in escrow during that time.

The earnout payment, based on Fortumo’s adjusted EBITDA performance for the 12 months ended 30 June, was expected to be $2.16m, subject to final confirmation, which would be paid to Fortumo's former shareholders by 5 October, with the balance of $3.24m returned to Boku.

Group cash totalled $48.6m at period end, up from $36.2m a year earlier.

The board said $11.25m of the $20m debt used to acquire Fortumo had been paid down by period end, with $3m of the revolver and $0.9m of the term loan paid down since the 2020 year-end.

It said its average daily cash balance - a measure which “smooths out” the effect of carrier and merchant payments - was $38m in June, up from $25.7m year-on-year.

“Our short run performance has been strong, we think our long-term future is brighter still,” said chief executive officer Jon Prideaux.

“With positive momentum in both the payments and identity businesses, I am confident in our ability to meet the revised, increased expectations over the full year.”

At 1400 BST, shares in Boku were down 0.24% at 207p.