Boku Inc (LSE: BOKU) appointed retail executive Richard Pennycook CBE as its new Chairman while reporting strong first-half results with revenue climbing 34% to over $63 million, driven by growth in its digital wallet services.
Boku Reports Revenue Growth in First Half Trading Update
The London-listed payment solutions company said revenue from digital wallets and account-to-account payment schemes jumped 90% compared to the same period last year, highlighting the continued shift away from traditional card payments toward local payment methods.
Boku's direct carrier billing division, which allows customers to charge purchases to their mobile phone bills, grew a more modest 16% during the six-month period. The company processed over $7 billion in total payment volume, up 27% from $5.8 billion in the first half of 2024.
“We remain focused on driving growth through deepening relationships with existing global merchants by increasing their connections to our LPM network,” CEO Stuart Neal said in a statement.
Profitability Metrics Show Momentum
Profitability improved significantly, with adjusted EBITDA expected to reach at least $21 million, representing a 50% increase from $14.2 million in the prior year period. The company's EBITDA margin expanded to approximately 33% from 30.1% a year earlier.
The results weren't entirely clean, however. About $3 million of revenue came from specific launch-phase pricing that has since normalized and won't recur in the second half. Stripping out this one-time boost, underlying revenue growth would have been around 27%.
Boku's cash position strengthened during the period, with total group cash rising 29% to roughly $192 million. The company's own cash holdings grew 16% to about $87 million, even after spending $12.3 million to repurchase 5.8 million shares.
Monthly active users on Boku's platform climbed 20% to over 95 million in June, up from 79.6 million a year earlier. The growth reflects increasing merchant adoption of local payment methods as businesses seek alternatives to traditional credit card processing.
Full-Year Outlook
For the full year, Boku expects revenue growth to match or exceed the underlying first-half rate of 27%, suggesting full-year revenue will beat current analyst consensus estimates of $119.7 million. Adjusted EBITDA is projected to align with the $38.3 million consensus figure.
The company maintained its medium-term guidance of organic revenue growth exceeding 20% annually and adjusted EBITDA margins above 30%.
Metric | Value | Previous Period | Growth |
Total Group Revenue H1 2025 | > $63 million | $47.3 million (H1 2024) | 34% |
Adjusted EBITDA H1 2025 | ≥ $21 million | $14.2 million (H1 2024) | 50% |
Adjusted EBITDA Margin H1 2025 | 33% | 30.1% (H1 2024) | +2.9pp |
Total Group Cash | $192 million | $148.5 million (June 2024) | +29% |
Boku Own Cash | $87 million | $75.2 million (June 2024) | +16% |
Leadership Changes
Separately, Boku announced Richard Pennycook CBE will become Chairman effective August 1, replacing Dr. Richard Hargreaves who is retiring after nine years on the board.
Pennycook brings extensive public company experience, currently serving as Chairman of On The Beach Group and previously leading Howdens Joinery Group. He spent 30 years in executive roles, including a stint as CEO of The Co-operative Group from 2013 to 2017.
“I am delighted to be joining the Board of Boku at this exciting time for the business as it accelerates its growth and expansion,” Pennycook said.
Hargreaves joined Boku while it was still private and helped guide the company through its 2017 AIM listing. “It has been a privilege to work with the whole team and to contribute to the success of the business over my nine years' involvement,” he said.
Boku operates a global network of local payment solutions, connecting merchants with customers through mobile carrier billing, digital wallets, and bank-to-bank transfer systems. The company processes payments in over 50 countries and works with more than 200 mobile operators worldwide.
