Mobile billing technology supplier Boku (BOKU:AIM) has experienced a trading boom in lockdown after reporting strong performance in both its Payments and Identity divisions through the five months to 31 May 2020.
The £222m market cap company says demand has soared for home entertainment - such as streamed movies, music, gaming - during lockdown, leading to ‘record’ new users making their first payment over the Boku platform.
This supports the likelihood of Boku hitting full year forecasts this year to 31 December, which are currently primed for a 46% jump in adjusted earnings before interest, tax, depreciation and amortisation to $10.8m on revenues up about 4% to $52.2m.
HOT STREAMING DRIVES PAYMENTS
The Payments division saw total payment volumes grow 35% to $2.6bn, thanks to the aforementioned streaming surge, fueling a 36% spike in monthly active users to more than 20m. New user numbers rose 20% to 9.2m.
There was also new payment launches for several high profile platforms, including Google, Netflix and Spotify.
‘The story remains the same for Boku’s Payment division as the widespread lockdown measures continue to play favourably into its capture of mobile spending volumes, which has been the case since the start of the year,’ said Megabuyte analyst Rob Warensjo.
Boku noted strong international progress in its Identity division with notable new launches, such as with payments provider FIS.
INVESTORS STAYING CAUTIOUS
That’s more upbeat than previously, when the outlook tone was fairly cautious because of increased uncertainty around trading, given a greater dependence on signing new business to grow.
Boku shares nudged a little more than 1% higher to 86.5p, having struggled to make much ground since their strong March bounce as markets regrouped after the pandemic sell-off.
