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Boku on the rise as monthly active users number passes 10mln

"Driven by these new users and increased stickiness for existing users, more than $1.5bn was processed through our system in the first six months of the year, a growth of 153%," said Boku CEO, Jon Prideaux
Paying via a hand-held device
Boku's technology enables mobile phone users to buy goods and services and charge them to their mobile phone bill or pre-pay balance

Mobile phone network carrier billing company Boku Inc (LON:BOKU) said it saw continued growth in all of its key metrics this year.

Revenue for the first half of 2018 is expected to be in the range of US$16.5mln to US$17mln, up from US$10.2mln in the first half of 2017, representing growth in excess of 60%.

READ: Mobile payments group Boku is coming to AIM

Adjusted underlying earnings (Ebitda) remained positive throughout the first half of the year and the group is on track to meet full-year expectations.

Around US$1.5bn of payments was carried on the Boku network in the six month period, up 153% on a total processed value of US$0.6bn in the first half of 2017.

At the end of June, the number of monthly active users on the Boku platform had risen to 10.3mln from 4.7mln in the first half of 2017.

"Our customers come to us for help in acquiring new users and I'm delighted to report that, with 10.3 million monthly active users, we've more than doubled this most important metric in the last year,” said Jon Prideaux, the chief executive of Boku.

The company held about US$30mln in cash at the end of period (2017: US$20mln). The average daily cash balance - a measure that smooths out the effect of carrier and merchant payments - was US$23.1mln in June, compared to US$19.2mln in December 2017.

“Spending through our platform is the raw material that we turn into revenue and by controlling costs we're able to generate the earnings that can be used to make sensible investments in future growth,” Prideaux said.

“These volumes make us the scale player in our industry, which is important: scale means that we can simultaneously afford to operate the world's most sophisticated, high-capacity, carrier billing platform whilst having the lowest unit cost. We are continuing to roll out new and existing customers into new territories and are developing new products. I'm particularly encouraged by the reaction of the market to our Mobile Identity offerings,” he added.

Shares in Boku, which floated in November at 59p, were up 6p at 121.5p in early deals.

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