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Boku Inc.

Boku, Inc. Revenues increased 39% to $23.5 million

Boku Inc. (LON: BOKU), the world’s leading independent direct carrier commerce company, has today announced its unaudited interim results for the period ended 30 June 2019.

Financial Highlights

· Revenues increased 39% to $23.5 million (H1 2018: $16.9 million)

· Adjusted EBITDA* for the Period of $4.3 million (H1 2018: $2.5 million)

· Gross Profit Margin at Group level of 87.5%, with Payments Gross Margins up to 95% from 93% (average for 2018)

· Cash balance of $27.9 million as at 30 June 2019, while average monthly cash balances fell to $22.2 million from $24.4 million in Dec 18 after absorbing previously signposted working capital requirement in relation to the Danal Inc acquisition

Operational Highlights

· Total Payment Volume (“TPV”) grew 47% reaching $2.3 billion (H1 2018: $1.5 billion)

· Increase in Monthly Active Users (“MAUs”) to 15.3 million (H1 2018: 10.3million), an increase of 48% vs H1 2018.

· Billable Identity Transactions grew 100% to 141 million (H1 2018: 70.6 million)

*Adjusted EBITDA: Earnings before interest, tax, depreciation, amortisation, share-based payment, foreign exchange gains/(losses) and exceptional items.

Jon Prideaux, Chief Executive of Boku Inc, commented:

“Our overall guidance for the year was for $52 million of revenue, gross margins of 93% in Payments and 40% in Identity leading to adjusted EBITDA growth of between 45% and 50%. Overall revenue at $23.5 million and Adjusted EBITDA of $4.3 million represent 45% and 47% respectively of our full year targets. There’s no question that we need a good second half in order to deliver; we anticipate one and thus leave our guidance unchanged.

“Gross margins in both segments are ahead of target. Within Payments we expect a stronger second half driven by the game release schedule, the traditional Christmas peak and a spate of new connections. We now have a pipeline of more than 250 deployments – moderated by some extended promotional periods by some customers. In Identity, we expect the investment that we have made in sales resource to start to pay off and also to start generating more non-US revenue as international connections become activated.

“Looking ahead to 2020, the strong pipeline in both Identity and Payments give me confidence in the long-term health of the business.”