Boku’s (BOKU) half-year revenues came in slightly ahead of the guidance given in its July trading update – when it had anticipated growth “in excess of” 33 per cent. Meanwhile, adjusted cash profits landed at $4.3m (£3.48m), up by almost three-quarters – with a doubling in profit from the group’s payments business tempered by a $2.3m adjusted loss from the identity operations.
It follows that the direct carrier billing specialist’s top line and adjusted cash profits for the period under review represent 45 per cent and 47 per cent, respectively, of its full-year targets. “There's no question that we need a good second half in order to deliver,” said chief executive Jon Prideaux, but “we anticipate one and thus leave our guidance unchanged”.
Total payment volumes increased by 47 per cent to $2.3bn. Management expects to see a stronger second half for payments, fuelled partly by the game release schedule. Within identity – which comprises last year's acquisition Danal – investment made into sales resources is expected to start bearing fruit. While progress for the division has been “acceptable, rather than extraordinary”, it has seen a doubling of billable transactions.
Costs tied to the Danal acquisition – along with much higher stock option expenses – contributed to a significant increase in reported operating losses, from $54,000 to $2.3m.
House broker Peel Hunt forecasts adjusted EPS of 1.1ȼ in 2019, up from 0.2ȼ in 2018.
| BOKU (BOKU) | ||||
| ORD PRICE: | 100p | MARKET VALUE: | £251m | |
| TOUCH: | 98-102p | 12-MONTH HIGH: | 183p | LOW: 63p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 21ȼ* | NET CASH: | $20.1m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
| 2018 | 16.9 | -0.56 | -0.3 | nil |
| 2019 | 23.5 | -2.50 | -1.1 | nil |
| % change | +39 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
*Includes intangible assets of $47.4m, or 19ȼ a share £1=$1.23 | ||||
