(Sharecast News) – Mobile payments technology specialist Boku reported significant growth in a first-half update on Tuesday, as its financial performance exceeded expectations.
The AIM-traded firm said revenue for the first half of was expected to reach at least $37.5m, representing a 24% increase compared to the same period in 2022.
On a constant currency basis, the growth was even more substantial, with revenue for the six months ended 30 June projected to be about 31% higher year-on-year.
The majority of revenue growth in the period was put down to the success of Boku’s new ‘local payment methods’, (LPMs), including e-wallets and account-to-account payments, which experienced a 359% increase.
Boku said the revenue generated from those LPMs rose from $1.6m in the first half of 2022 to $7.2 million in the period.
The company said it expected adjusted EBITDA for the first half to be around $12m – a 25% increase from $9.5m in the first six months of 2022.
Additionally, Boku said it now expected that full-year revenues and EBITDA would surpass its own expectations.
The firm’s total cash reserves, including its own cash and merchant cash-in-transit, were meanwhile estimated to be at least $114m, compared to $67.8m in June last year.
Boku also pointed out that it was currently debt-free.
“The strong end to 2022 has continued into the first half of 2023 and we now expect both revenues and EBITDA to exceed the board’s prior expectations for the full year,” said chief executive officer Jon Prideaux.
“With the majority of our key merchants now using our services for the newer e-wallets and account-to-account based payments, our growth strategy is manifestly working.
“The story is one of steady growth in DCB being complemented by triple digit growth rates on local payment methods.”
At 1427 BST, shares in Boku were up 1.12% at 136p.
Reporting by Josh White for Sharecast.com.