UK's Boku H1 revenue rises 11% on underlying basis amid delayed merchant launches

Overview

• UK payment network operator's H1 2026 revenue grew 11% on underlying basis, led by Bundling

• Adjusted EBITDA rose 7% on underlying basis; growth impacted by delayed merchant launches

• Company repurchased $23.6 mln in shares and extended buyback authority

Outlook

• Boku expects 2026 revenue of $135-142 mln

• Company sees 2026 adjusted EBITDA of $38-42 mln

• Company does not expect blended take rate to reduce further in H2 2026

Result Drivers

• DELAYED MERCHANT LAUNCHES - Revenue growth was impacted by delays to launches for a key merchant and a small number of other merchants, with anticipated volume gains pushed from H1 into H2

• SUSPENDED CONNECTIONS - Two direct carrier billing connections were suspended by local authorities in one country, reducing revenue base

• SHIFT TO LOWER TAKE-RATE PRODUCTS - Growth in the half was weighted towards lower take-rate products including Bundling, contributing to a reduced blended take rate

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Boku Inc is GBp195.00, about 58.5% above its September 22 closing price of GBp123.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)