Analyst: Victor Shmulevich, BCom. ‘22
[email protected] Equity Research US Boingo Wireless, Inc. (NASDAQ: WIFI) Price Target US$ 18.64 Telecommunication - Wireless Rating Buy Boingo – Five Bars Out of Five Share Price (Jan. 22 Close) US$ 12.64 January 22, 2020 Total Return 47.5% Boingo Wireless, Inc. (“Boingo” or “the Company”) provides Key Statistics mobile internet and cellular connectivity for wireless devices by 52 Week H/L $26.07/$8.86 constructing WiFi and cellular networks at large venues such as Market Capitalization $453M airports, stadiums, military bases, and multifamily units, and Average Daily Trading Volume 30M monetizing those networks through various products and services. Net Debt $101.5M Thesis Enterprise Value $564.1M Through the Company’s recent restructuring, management has Net Debt/EBITDA 1.27x aligned Boingo for long term growth by focusing corporate attention on its DAS, carrier offload, and military/multifamily Diluted Shares Outstanding 44.1M segments, which face strong industry tailwinds. Despite strong Free Float 97.4% competition, Boingo has retained an RFP win rate of 42% and Dividend Yield N/A leads in indoor cellular networks, military WiFi connectivity, and WestPeak’s Forecast its recent acquisition of Elauwit Networks opens the door for large multifamily contracts in the near future. 2019E 2020E 2021E Revenue $269M $309M $400M Drivers EBITDA $76M $100M $120M Strong industry tailwinds are being driven by the increasing Net Income -$10M $5.7M $9.4M demand for bandwidth as consumers and businesses shift towards more data intensive activities such as video streaming, EPS -$0.26 $0.09 $0.18 continuous connectivity, and IoT communications.