Boku - Outlook maintained for FY20; upside possible

Boku reported FY19 results that were largely in line with its January trading update. The Payments division doubled adjusted EBITDA in FY19 highlighting the scale benefits of this business, while the Identity division saw a reduced EBITDA loss on revenue growth of 26%. As COVID-19 is currently having limited net impact on the business, we make only minor changes to forecasts. We note that increased volumes in the Payments business, as people seek digital entertainment while self-isolating, could drive upside to our FY20 forecasts.