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The FTSE AIM 100 index is made up of the highest 100 corporations by market capitalisation listed on the Various Funding Market (AIM). And it’s dwelling to some actually attention-grabbing development shares.
With a market-cap of £516m, Boku‘s (LSE:BOKU) one such example. It’s a fintech agency that connects world tech giants equivalent to Amazon, Netflix and Spotify to greater than 114m individuals worldwide who both don’t have a debit/bank card or desire to not use them.
Let’s check out Boku’s 2025 outcomes — launched Wednesday (17 March) — to see why the inventory jumped nearly 8%.
A mobile-first fee community
When Boku listed in 2018, it was centered on provider billing (charging gadgets and providers to your telephone invoice). Whereas nonetheless energetic in that market, which accounted for nearly 55% of income final 12 months, the agency’s branched out into native fee strategies (LPMs) and bundling.
LPMs embody account-to-account and digital wallets. A lot of the agency’s development right here is coming from Southeast Asia, the place tons of of tens of millions of individuals now use digital wallets, together with GrabPay (Southeast Asia), MoMo (Vietnam), and GCash (the Philippines).
Bundling is clearly when suppliers provide extra enticing packages. For instance, getting six months of Spotify or Disney+ included along with your cell phone plan. Boku processes the fee, taking a small reduce.
Due to this fact, the agency sits on the intersection of some actually large development traits (world proliferation of smartphones, digital funds, streaming, gaming, e-commerce, and so on).
Sturdy development
All three companies are rising, however digital wallets and bundling are actually taking off, with income development of 67% and 71% respectively final 12 months. This noticed group income enhance 30% 12 months on 12 months to $128.8m — a doubling of the highest line since 2022.
FY 2025Yr-on-year developmentDirect provider billing $70.4m+9percentDigital wallets and account-to-account $43.5m+67%Bundling $14.9m+71%Whole group income$128.8m+30%
Month-to-month energetic customers jumped 31% to 114.4m, whereas whole fee quantity rose 27% to $15.7bn. CEO Stuart Neal stated: “As global e-commerce becomes increasingly dependent on a diverse range of payment methods, our role as a growth partner to global merchants around the world continues to deepen.”
One other factor I like right here is that the funds firm is worthwhile. Final 12 months, adjusted EBITDA elevated 36% to $41.3m, supporting an working revenue of $18.9m. The agency is debt-free and ended December with $103m of its personal money.
This 12 months, Metropolis analysts anticipate earnings per share to extend round 26%. This places the inventory on a ahead price-to-earnings ratio of about 22, which I don’t contemplate costly for a fast-growing world fintech agency.
Over the medium time period, Boku’s concentrating on natural compound annual income development above 20%. And a closing factor value noting is that the corporate’s shifting into cross-border funds and growing new fee capabilities like stablecoins. So Boku isn’t resting on its laurels.
Remaining ideas
As for dangers, there’s the potential for adversarial forex fluctuations in addition to a worldwide financial slowdown. Additionally, there’s loads of competitors in native funds in Asia Pacific and Latin America (it additionally operates in Brazil).
That stated, world e-commerce is projected to achieve $11trn by 2028, so this can be a huge market that may accommodate a number of winners. The expansion alternatives are definitely there, and if Boku can seize them, it needs to be a bigger firm a couple of years from now.
As such, I reckon this under-the-radar AIM inventory is value contemplating at 177p.
