Boku Company Research (BOKU)

Boku reported FY24 revenue growth of 20% and adjusted EBITDA growth of 22%. While direct carrier billing (DCB) maintained double-digit growth, revenue from other local payment methods (LPMs) grew 56% y-o-y, making up 26% of group revenue. With strong growth in total payment volumes (TPV) continuing year-to-date, management now expects to achieve at least 20% revenue growth this year and on average in the medium term. EBITDA margins should start to expand from FY26 due to operational leverage from ongoing investments in scaling the business. We have upgraded our forecasts, lifting our adjusted EBITDA by 5.3% in FY25 and 13.7% in FY26, resulting in normalised diluted EPS upgrades of 7.2% and 17.6% respectively.