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AIM-listed mobile payments provider Boku (LON:BOKU) has seen its share price decrease by 5.04% to 122.50p (as of 13:00 BST) after it provided an update for the first half of the year. Management said that the company was on track to meet revenue and EBITDA expectations after its revenues grew by 33% during the six months ended 30th June.
CEO Jon Prideaux commented: “With Monthly Active Users continuing to grow strongly, we are proving once again the value that Boku brings to our global digital clients. Of course, the law of large numbers dictates that Payments volumes will not continue to grow at such high percentages indefinitely, but with our significant scale driving operational gearing, the incremental revenues we generate from Payments will continue to drop straight through to EBITDA, affording us the opportunity to make ongoing investments in future growth.
“Our first such investment, Boku Identity, is off to a flying start and yet we have barely begun to realise the full potential of this new venture. Having acquired Danal Inc, now fully integrated as Boku Identity, at the beginning of the year, the first half of 2019 has been focused on setting ourselves up for sustainable global expansion in what is a new and emerging market. We expect this progress on Identity to continue and accelerate in the second half.
“Identity is not the only innovation we are pursuing. Our recently announced partnership with Grab in South East Asia demonstrates that there is plenty of potential to grow our Payments business through partnerships with mobile wallets and other alternative payment methods.
“I am hugely excited by the pipeline of opportunities that we have created in both Payments and Identity and I look forward to providing further updates as the year progresses.
“We maintain our full year guidance for revenues and adjusted EBITDA, with the normal seasonal bias and further scale up in identity revenues expected in H2 2019“.