Boku profit before tax surges 178pc in 2023

19th Mar 2024 12:09

(Sharecast News) - Mobile payments specialist Boku reported a 30% jump in revenue in its 2023 results on Tuesday, to $82.7m, up from $63.8m in the prior year, with significant contributions from digital wallets and account-to-account (A2A) connections, which soared by 153% to $16.9m.

The AIM-traded firm attributed the upswing to the increasing adoption of those payment methods by Boku's key merchants.

Its adjusted EBITDA rose to $25.8m, marking a $5.6m increase from the restated $20.2m in 2022, achieving a nearly 32% margin.

That growth was realised even as Boku continued to invest in its global local payment method (LPM) network and awarded $0.9m in one-time bonuses to staff in recognition of the year's exceptional performance.

Boku also reported a 178% increase in profit before tax from continuing operations to $11.4m, and a net profit after tax of $10.1m.

Boku reported a cash position at year-end of $150.9m - a substantial increase from $116.5m at the end of 2022, as it maintained its debt-free status.

The company also repurchased 5,512,079 of its own shares for £7.9m as part of its buyback scheme throughout the year.

Operationally, Boku reported a 29% increase in monthly active users (MAUs) to 67.4 million.

The firm also experienced an 18% increase in total payment volume (TPV) to $10.5bn, with digital wallets and A2A connections driving much of that growth.

Additionally, Boku facilitated about 125 new payment launches with key global merchants such as Google, Meta and Amazon.

"These results demonstrate that Boku is in strong financial shape and poised to fulfil its potential to grow significantly in the world of local payment methods, which now represent two thirds of all global online payment volumes," said chief executive officer Stuart Neal.

"It is testament to our focus on delivering for our customers, combined with a clear long-term strategy, that we are expanding the relationships with all of our key global merchants, beyond our direct carrier billing (DCB) product, to now incorporate digital wallets and account-to-account (A2A) schemes across the globe."

Neal said 2024 had started strongly, adding that with deals already in place, the firm had the ability to double the business over the mid-term as previously stated, with additional value to be created from expansion into new verticals.

"I am beyond excited at the potential for growth in this business as we create the global network for localised payment solutions."

At 1146 GMT, shares in Boku were up 7.6% at 184p.

Reporting by Josh White for Sharecast.com.