Boku, a global fintech firm, reports a 24% increase in revenue, despite incurring half-year losses.
- The company’s CEO, Stuart Neal, attributes growth to international expansions and diverse portfolio.
- Revenue reached $47.3 million, bolstered by partnerships in key international markets.
- Increased expenses led to a £1.6m loss, a strategic move to support long-term growth.
- Neal remains optimistic about future prospects, citing strong foundations for expansion.
Boku, a company providing localised payment solutions such as mobile payments and digital wallets, has reported a notable 24% uptick in revenue for the first half of the year. Despite this growth, the firm has experienced a half-year loss, attributed primarily to a strategic increase in expenditures. According to Stuart Neal, Boku’s CEO, the escalation in costs is a calculated decision to scale the business effectively.
The company, which has been listed on the London AIM exchange since 2017, achieved revenue of $47.3 million (£35.4 million) for the six-month period ending 30 June 2024. Neal highlights the impact of the firm’s international activities, with significant contributions from operations across Europe and Asia enhancing overall turnover. Partnerships such as the integration of the Polish payment system Blik with Google and Netflix’s connection to Italy’s Satispay have been pivotal.
Operating expansively in markets including Thailand, Japan, and Germany, Boku’s growth is not confined to a singular product or region. Neal emphasises the importance of a diversified portfolio contributing to this financial performance. “We’re not really dependent on one or two things. It’s coming from the whole portfolio,” he remarked.
However, the surge in expenses is substantial, flipping what was a £2.2 million profit in the first half of 2023 to a £1.6 million loss this year. This increase in expenditure is part of a deliberate strategy to deepen the company’s operational foundation. Neal explains that resources are being directed towards enhancing treasury systems, process engineering, and back-office automation to support future growth plans.
While Boku’s shares saw a slight increase at the market’s opening, they experienced a marginal decline shortly after. Additionally, no dividends were distributed during this financial period. Despite these financial metrics, Neal expresses confidence in the company’s strategic direction and its ability to build upon its foundations for future success.
Boku’s strategic investments underscore a commitment to sustainable growth despite short-term financial setbacks.
