Source - DGAP Regulatory

Edison Investment Research Limited
Edison issues outlook on Boku (BOKU): Making the complex simple for global merchants

20-March-2024 / 14:37 GMT/BST
The issuer is solely responsible for the content of this announcement.


London, UK, 20 March 2024


Edison issues outlook on Boku (BOKU): Making the complex simple for global merchants

Boku’s strategy to widen its offering within the local payment method (LPM) market accelerated FY23 revenue growth to 30%, with 15% growth from the core direct carrier billing (DCB) business and supplemented by 153% growth from eWallets and real-time payments. EBITDA grew 27% y o y as the company continued to invest in building out its LPM network from a technological and regulatory perspective. With all major merchants using or planning to use Boku’s wider portfolio of payment methods, the company should benefit from faster growth in the non-card payment market and be able to leverage the investment it has made in its mobile-first platform to drive growth in earnings and cash generation.


Boku is trading at a small premium to its peer group on FY24/25 EV/EBITDA multiples. Via a reverse discounted cash flow (DCF) that uses our forecasts to FY26 (which are more conservative than the company’s mid-term targets would suggest) and a WACC of 9%, we estimate the share price is factoring in revenue growth of 4.5% and average EBITDA margins of 35% for FY27–33, well below the company’s targets. In a DCF factoring in meeting the targets by FY27, we estimate the shares could be worth 251p. A growing contribution from Amazon, continued adoption of LPMs and new major merchant sign-ups are the main triggers to achieve this, in our view.

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All reports published by Edison are available to download free of charge from its website

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first company in-market 17 years ago, Edison has more than 100 employees and covers every economic sector. Headquartered in London, Edison also has offices in New York, Sydney and Wellington.

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Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

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1863487  20-March-2024 

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