Boku Inc (LON:BOKU), a leading global mobile payment and mobile identity company, has announced the following unaudited interim results for the six months ended 30 June 2021.
Highlights
Group
· Group Revenues for H1 2021 up 38% to $34.2 million (H1 2020: $24.7 million*)
o Organic Group revenue growth strong at 21.0% (excluding acquired Fortumo revenues)
· Group Adjusted EBITDA** for H1 2021 of $10.3 million is 61% higher than H1 2020 (H1 2020: $6.4 million)
· Operating Profit increased to $2.3 million for H1 2021 (H1 2020: $0.2 million)
· Net Profit before tax increased to $1.9 million (H1 2020: $0.09 million)
· Twelve-month earnout period relating to the 2020 acquisition of Fortumo Holdings Inc completed on 30 June 2021. $5.4 million has been held in escrow during the earnout period.
o The earnout payment, based on Fortumo Adjusted EBITDA** performance for the 12 months period ended 30 June 2021, is expected to be $2.16 million, subject to final confirmation, which will be paid to Fortumo’s former shareholders by 5 October 2021, with the balance of $3.24 million returned to Boku.
· Group cash of $48.6 million at 30 June 2021 (30 June 2020: $36.2 million***)
o $11.25 million of the $20.0 million debt used to acquire Fortumo paid down by 30 June 2021 with $3 million of the revolver and $0.9 million of the term loan paid down since the year end.
· The average daily cash balance – a measure which smooths out the effect of carrier and merchant payments, was $38.0 million in June 2021 (June 2020: $25.7 million)
Payments division
· H1 2021 Payments revenue increased by 40% to $30.7 million (H1 2020: $22.0 million)
o Organic Payments revenue* growth of 20% to $26.3 million (excluding Fortumo revenues acquired 1 July 2020) compared to $22.0 million in H1 2020
· Payments Adjusted EBITDA** increased by 33% to $11.2 million (H1 2020 $8.4 million*)
· Total Payment Volume**** of $4.0 billion in H1 2021, an increase of 29% on H1 2020 ($3.1 billion)
· 20.8 million new users made their first transaction with the Group during the first half of the year, 91% up on the same period in the previous year (H1 2020)
o At Group level the number of new users increased materially due to the inclusion of transactional merchants from Fortumo; excluding Fortumo data, new users increased by 8% to 11.7 million
· 29.7 million Monthly Active Users of the Boku platform in June 2021 (June 2020: 20.3 million), a 46% increase.
o Organic growth in Monthly Active Users (excluding Fortumo) of 28%
· H1 2021 take rate (Total Payments revenue divided by TPV) stable at 0.77%, in line with H2 2020 (including Fortumo volumes)
· Launches in H1 2021 with Google, Netflix, Apple, DAZN, Spotify, Epic Games, Amazon, Riot Games and Tinder across both Direct Carrier Billing (‘DCB’) and eWallets.
· Boku has materially expanded its regulated payment activities and is currently authorized to process regulated payments in 49 countries in Europe and Asia.
Identity division
· Identity revenues increased by 30% to $3.5 million in H1 2021 (H1 2020: $2.7 million) and Adjusted EBITDA** losses reduced to $0.9 million from H1 2020 ($2.3 million loss), in line with the Board’s expectations. H2 2021 costs expected to increase as further investment is made.
· Identity connections added in Spain, Italy and Indonesia, together with a strengthening of the global partnership with Vodafone Group
· Strong growth from key existing customers complemented by a ramp up in transaction volumes from new mobile wallet customers in Indonesia
* 2020 H1 comparative excludes any revenues from Fortumo Holdings Inc (‘Fortumo’) which was acquired on 1 July 2020
** Adjusted EBITDA (Earnings before interest, taxation, depreciation and amortization): Adjusted for stock option expenses, Forex gains/losses, Exceptional items and ‘other income’ item in 2021. See reconciliation to profit per the income statement
*** Comparative group cash balance at 30 June 2020 of $80.7 million included $44.5 million of cash held to pay for the acquisition of Fortumo on 1 July 2020. Excluding this cash, the balances were $36.2 million
**** TPV is the US$ value of transactions processed by the Boku platform
***** Adjusted operating expenditure is Gross Profit less Adjusted EBITDA
Jon Prideaux, Boku’s CEO, commented:
“Our short run performance has been strong, we think our long-term future is brighter still. 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.”
