Boku — Building a critical mass in Identity

Boku (AIM: BOKU)

Last close As at 22/11/2024

GBP1.84

−1.00 (−0.54%)

Market capitalisation

GBP553m

More on this equity

Research: TMT

Boku — Building a critical mass in Identity

Boku has signed a material identity data supply contract with a global mobile telecoms group. This is a crucial step in building out the scale of the Identity business, providing access to mobile subscribers in multiple countries. While we view this as a positive development for the Identity business, we have taken a more cautious approach to the timing of new merchant contracts, reducing Identity revenues and group EBITDA in FY20 and FY21.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

Boku

Building a critical mass in Identity

Contract announcement

Software & comp services

5 November 2019

Price

100.5p

Market cap

£252m

$1.29/£

Net cash ($m) at end H119

20.1

Shares in issue

250.1m

Free float

89%

Code

BOKU

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

1

(16.6)

(25.6)

Rel (local)

(2.1)

(16.9)

(28.3)

52-week high/low

148p

69p

Business description

Boku operates a billing and identity verification platform that connects merchants with mobile network operators in more than 50 countries. It has c 180 employees, with its main offices in the US, UK, Germany and India.

Next events

FY19 trading update

January 2020

Analyst

Katherine Thompson

+44 (0)20 3077 5730

Boku is a research client of Edison Investment Research Limited

Boku has signed a material identity data supply contract with a global mobile telecoms group. This is a crucial step in building out the scale of the Identity business, providing access to mobile subscribers in multiple countries. While we view this as a positive development for the Identity business, we have taken a more cautious approach to the timing of new merchant contracts, reducing Identity revenues and group EBITDA in FY20 and FY21.

Year
end

Revenue ($m)

EBITDA*
($m)

Diluted EPS*
($)

DPS
($)

P/E
(x)

EV/EBITDA
(x)

12/17

24.4

(2.3)

(0.03)

0.0

N/A

N/A

12/18

35.3

6.3

0.02

0.0

83.6

47.4

12/19e

52.0

9.3

0.02

0.0

71.4

32.2

12/20e

63.1

17.6

0.04

0.0

31.9

17.1

12/21e

73.2

24.9

0.06

0.0

20.9

12.0

Note: *EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Identity partnership signed with global mobile group

Boku has signed an agreement with a global mobile telecoms group to provide mobile identity verification services to its mobile subscribers. As part of the agreement, Boku will integrate directly with the partner’s global hub, enabling any of the partner’s mobile network operators worldwide to connect with Boku’s Identity platform through a single connection. The more operators (and hence subscribers) connected to Boku’s Identity platform, the more attractive the identity verification service becomes to merchants operating in those geographies.

Laying the groundwork for longer-term growth

The company noted that progress on Identity was taking longer than initially expected. While this contract announcement is a step in the right direction, confirming supply of identity data for Boku, we have taken a more cautious view on the pace at which the company will sign up new merchants to use its Identity service. We have reduced our FY20 Identity revenue forecast from $17m to $12m, which increases the Identity EBITDA loss from $1.5m to $4.0m and reduces group EBITDA from $20.1m to $17.6m. For FY21e, we reduce Identity revenues by $5.5m and group EBITDA by $2.8m.

Valuation: Strong free cash flow yield

On an EV/EBITDA basis, Boku is trading at a discount to peers on FY20 and FY21 estimates. On a P/E basis, it trades at a small premium for FY20 and a discount for FY21. Boku’s strong cash generation is reflected in its above-average free cash flow yield for FY20 and FY21. Confirmation of contract extensions and new merchants for the Identity business, as well as evidence of a growing contribution from mobile wallets in the Payments business, could help to close the valuation discount.

Changes to forecasts

Exhibit 1: Changes to forecasts

$m

FY19e

FY20e

FY21e

Old

New

Change

y-o-y

Old

New

Change

y-o-y

Old

New

Change

y-o-y

DCB revenues

43.1

43.1

0.0%

22.2%

51.1

51.1

0.0%

18.5%

58.2

58.2

0.0%

13.8%

Identity revenues

8.9

8.9

0.0%

N/A

17.0

12.0

-29.4%

34.8%

20.5

15.0

-26.8%

25.0%

Total revenues

52.0

52.0

0.0%

47.5%

68.1

63.1

-7.3%

21.3%

78.7

73.2

-7.0%

15.9%

Gross profit

44.0

44.0

0.0%

34.3%

57.1

54.6

-4.4%

23.9%

65.5

62.7

-4.2%

15.0%

Gross margin

84.6%

84.6%

0.0%

-8.3%

83.8%

86.4%

2.7%

1.8%

83.3%

85.8%

2.5%

-0.7%

EBITDA

9.3

9.3

0.0%

47.3%

20.1

17.6

-12.5%

88.5%

27.7

24.9

-9.9%

42.1%

EBITDA margin

17.9%

17.9%

0.0%

0.0%

29.4%

27.8%

-5.5%

9.9%

35.2%

34.1%

-3.2%

6.3%

Normalised operating profit

6.6

6.6

0.0%

36.4%

17.3

14.8

-14.4%

124.8%

25.0

22.3

-11.0%

50.1%

Normalised operating profit margin

12.7%

12.7%

0.0%

-1.0%

25.5%

23.5%

-1.9%

10.8%

31.8%

30.4%

-1.4%

6.9%

Reported operating profit

(3.8)

(3.8)

0.0%

57.4%

7.0

4.5

-35.5%

-219.5%

14.7

11.9

-18.7%

162.8%

Reported operating margin

-7.3%

-7.3%

0.0%

-0.5%

10.3%

7.2%

-3.1%

14.5%

18.7%

16.3%

-2.4%

9.1%

Normalised PBT

6.0

6.0

0.0%

40.5%

16.6

14.1

-15.0%

135.7%

24.4

21.6

-11.3%

53.2%

Reported PBT

(4.4)

(4.4)

0.0%

47.5%

6.3

3.8

-39.5%

N/A

14.1

11.3

-19.6%

195.8%

Normalised net income

4.7

4.7

0.0%

40.5%

13.1

11.2

-15.0%

135.7%

19.3

17.1

-11.3%

53.2%

Reported net income

(4.4)

(4.4)

0.0%

1.5%

5.7

3.4

-39.5%

N/A

11.9

9.6

-19.6%

179.4%

Normalised basic EPS ($)

0.020

0.020

0.0%

27.8%

0.052

0.044

-15.0%

121.2%

0.075

0.067

-11.3%

52.8%

Normalised diluted EPS ($)

0.018

0.018

0.0%

17.1%

0.048

0.041

-15.0%

123.6%

0.070

0.062

-11.3%

52.8%

Reported basic EPS ($)

(0.018)

(0.018)

0.0%

-7.8%

0.022

0.014

-39.5%

N/A

0.047

0.038

-19.6%

178.5%

Net debt/(cash)

(27.3)

(27.3)

0.0%

-5.4%

(46.6)

(43.5)

-6.7%

59.2%

(72.7)

(66.8)

-8.2%

53.5%

TPV ($bn)

5.05

5.05

0.0%

42.5%

6.65

6.65

0.0%

31.7%

7.95

7.95

0.0%

19.5%

Take rate

0.85%

0.85%

0.0%

0.77%

0.77%

0.0%

0.73%

0.73%

0.0%

Source: Edison Investment Research

Exhibit 2: Financial summary

$m

2014

2015

2016

2017

2018

2019e

2020e

2021e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

18.3

19.2

17.2

24.4

35.3

52.0

63.1

73.2

Cost of Sales

(4.1)

(4.0)

(3.2)

(2.3)

(2.5)

(8.0)

(8.6)

(10.4)

Gross Profit

14.2

15.2

14.0

22.1

32.8

44.0

54.6

62.7

EBITDA

 

 

(9.6)

(11.4)

(12.3)

(2.3)

6.3

9.3

17.6

24.9

Normalised operating profit 

(9.8)

(12.4)

(13.8)

(4.0)

4.8

6.6

14.8

22.3

Amortisation of acquired intangibles

(0.8)

(1.9)

(1.7)

(1.3)

(1.3)

(1.8)

(1.8)

(1.9)

Exceptionals

(2.1)

(0.1)

(2.4)

(2.2)

(1.4)

(0.1)

0.0

0.0

Share-based payments

(1.7)

(1.8)

(2.1)

(1.5)

(4.6)

(8.5)

(8.5)

(8.5)

Reported operating profit

(14.4)

(16.2)

(19.9)

(9.0)

(2.4)

(3.8)

4.5

11.9

Net Interest

(0.6)

(0.4)

(1.2)

(2.4)

(0.6)

(0.6)

(0.7)

(0.6)

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

(17.1)

0.0

0.0

0.0

0.0

Profit Before Tax (norm)

 

 

(10.4)

(12.8)

(15.0)

(6.4)

4.3

6.0

14.1

21.6

Profit Before Tax (reported) 

(15.0)

(16.6)

(21.1)

(28.5)

(3.0)

(4.4)

3.8

11.3

Reported tax

(0.4)

(0.4)

0.5

(0.1)

(1.3)

0.0

(0.4)

(1.7)

Profit After Tax (norm)

(7.8)

(9.6)

(11.2)

(4.8)

3.4

4.7

11.2

17.1

Profit After Tax (reported)

(15.4)

(17.0)

(20.6)

(28.7)

(4.3)

(4.4)

3.4

9.6

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

(7.8)

(9.6)

(11.2)

(4.8)

3.4

4.7

11.2

17.1

Net income (reported)

(15.4)

(17.0)

(20.6)

(28.7)

(4.3)

(4.4)

3.4

9.6

Basic ave. number of shares outstanding (m)

21.3

27.4

140.1

150.3

217.1

238.7

254.5

255.2

EPS - basic normalised ($) 

(0.36)

(0.35)

(0.08)

(0.03)

0.02

0.02

0.04

0.07

EPS - diluted normalised ($) 

(0.36)

(0.35)

(0.08)

(0.03)

0.02

0.02

0.04

0.06

EPS - basic reported ($)

 

 

(0.72)

(0.62)

(0.15)

(0.19)

(0.02)

(0.02)

0.01

0.04

Dividend ($)

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Revenue growth (%)

N/A

4.7

(10.4)

42.0

44.5

47.5

21.3

15.9

Gross Margin (%)

77.6

79.1

81.4

90.7

92.9

84.6

86.4

85.8

EBITDA Margin (%)

(52.5)

(59.2)

(71.4)

(9.5)

17.9

17.9

27.8

34.1

Normalised Operating Margin

(53.2)

(64.4)

(80.0)

(16.5)

13.7

12.7

23.5

30.4

BALANCE SHEET

Fixed Assets

 

 

32.7

30.8

26.8

26.9

23.0

50.6

48.2

46.8

Intangible Assets

32.5

30.1

25.7

25.8

22.5

47.0

45.3

43.2

Tangible Assets

0.2

0.7

0.5

0.4

0.3

2.9

1.5

0.3

Investments & other

0.0

0.0

0.6

0.7

0.3

0.7

1.5

3.3

Current Assets

 

 

72.5

53.0

48.9

79.3

84.0

96.6

123.4

154.1

Stocks

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Debtors

59.7

43.3

37.1

59.1

51.7

63.6

75.4

83.9

Cash & cash equivalents

12.0

9.0

11.3

18.7

31.1

31.8

46.8

68.9

Other

0.7

0.6

0.5

1.4

1.3

1.3

1.3

1.3

Current Liabilities

 

 

(69.6)

(65.5)

(61.0)

(78.0)

(79.6)

(90.6)

(103.0)

(111.7)

Creditors

(64.6)

(60.4)

(54.9)

(75.5)

(77.4)

(86.1)

(99.6)

(109.5)

Tax and social security

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Short term borrowings

(5.0)

(5.1)

(6.1)

(2.5)

(2.2)

(4.5)

(3.3)

(2.2)

Other

0.0

0.0

0.0

(0.0)

0.0

0.0

0.0

0.0

Long Term Liabilities

 

 

0.0

(0.3)

(15.2)

(0.2)

(0.8)

(0.8)

(1.3)

(3.8)

Long term borrowings

0.0

(0.2)

(15.1)

(0.0)

0.0

0.0

0.0

0.0

Other long term liabilities

0.0

(0.1)

(0.1)

(0.1)

(0.8)

(0.8)

(1.3)

(3.8)

Net Assets

 

 

35.5

18.0

(0.4)

28.0

26.6

55.8

67.4

85.4

Minority interests

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Shareholders' equity

 

 

35.5

18.0

(0.4)

28.0

26.6

55.8

67.4

85.4

CASH FLOW

Op Cash Flow before WC and tax

(9.6)

(11.4)

(12.3)

(2.3)

6.3

9.3

17.6

24.9

Working capital

9.3

11.6

(3.4)

1.0

7.2

(3.1)

1.7

1.3

Exceptional & other

(1.6)

1.1

4.2

(5.5)

0.2

(0.8)

(0.4)

0.0

Tax

(0.0)

(0.0)

(0.0)

0.0

(0.2)

(0.4)

(0.7)

(1.0)

Net operating cash flow

 

 

(1.9)

1.3

(11.5)

(6.8)

13.5

5.0

18.2

25.3

Capex

(1.1)

(3.6)

(1.5)

(0.3)

(0.3)

(1.8)

(1.3)

(1.4)

Acquisitions/disposals

5.9

0.3

0.0

0.0

(0.2)

(0.7)

0.0

0.0

Net interest

(0.3)

(0.3)

(0.3)

(0.9)

(0.6)

(0.3)

(0.6)

(0.6)

Equity financing

0.2

0.1

0.1

19.8

0.5

0.4

0.0

0.0

Dividends

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.6

(0.0)

0.1

(1.1)

0.2

0.0

0.0

0.0

Net Cash Flow

3.3

(2.2)

(13.1)

10.6

13.1

2.5

16.3

23.4

Opening net debt/(cash)

 

 

(4.9)

(7.0)

(3.6)

9.9

(16.2)

(28.9)

(27.3)

(43.5)

FX

(1.2)

(0.8)

(0.4)

0.4

(0.5)

(0.3)

(0.2)

(0.1)

Other non-cash movements

0.0

(0.4)

(0.0)

15.1

0.0

(3.8)

0.0

0.0

Closing net debt/(cash)

 

 

(7.0)

(3.6)

9.9

(16.2)

(28.9)

(27.3)

(43.5)

(66.8)

Source: Boku, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by Boku and prepared and issued by Edison, in consideration of a fee payable by Boku. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Boku and prepared and issued by Edison, in consideration of a fee payable by Boku. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1,185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Boku

View All

Latest from the TMT sector

View All TMT content

Research: Energy & Resources

Egdon Resources — Farm-out update and government moratorium

Egdon has announced it has signed an exclusivity agreement with a large internationally recognised E&P company for UK offshore licences P1929 and P2304. The licences sit in the Southern North Sea and contain the Resolution and Endeavour gas discoveries. Resolution has been independently assessed by Schlumberger to hold mean contingent gas resources of 231bcf. Egdon has also responded to the government announcement that it will introduce a temporary moratorium on hydraulic fracturing for shale gas. The company’s unconventional acreage holds the Springs Road-1 well, which contains 640bcf of gas per square mile.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free