Kin and Carta operating profit tops market expectations

by | Aug 17, 2023

(Sharecast News) – Digital entertainment consultancy Kin and Carta reported net revenue of £48m in its fourth quarter in a trading update on Thursday – a figure that fell squarely in the middle of its projected range for the period.
The London-listed company said it marked the second consecutive quarter where it saw sequential growth in net revenue when considering acquisition impacts.

Looking at the entirety of the 2023 financial year, net revenue was set to remain steady, mirroring the prior year’s figure of around £192m – aligning well with prior forecasts.

Kin and Carta said its adjusted operating profit for the year was anticipated to fall between £17.9m and £18.4m, which would be 10.5% to 14.0% higher than market predictions.

That increase was put down to a revamped operating model that boasted both a more streamlined cost structure, and enhanced operational efficacy.

As a result, the company was projecting an adjusted operating profit margin of 9.3% to 9.6%.

Furthermore, its adjusted EBITDA margins were anticipated to sit between 11.7% and 12.0%.

In terms of net debt, Kin and Carta said it had continued to be relatively modest when seen alongside adjusted EBITDA, and was estimated to be around £20m by the end of July.

Kin and Carta said it had entered the new financial year with a substantial backlog, predicting another quarter of sequential net revenue growth in the first three months.

Despite the company noting robust client engagement levels, it also acknowledged the presence of ongoing market challenges in its sector.

As a result, Kin and Carta said it was vigilant on its outlook, continuing to manage its operations with prudence.

“We executed through a challenging second half to return to modest quarterly growth with an improved cost base,” said chief executive officer Kelly Manthey.

“While macro challenges remain across the sector, I am encouraged by the start to the first quarter, underpinned by a solid foundation of enterprise clients.”

Kin and Carta said it would announce its preliminary results for the 2023 financial year, and its outlook for 2024, in October.

At 1131 BST, shares in Kin and Carta were up 16.85% at 74.2p.

Reporting by Josh White for

Related articles

Ryanair passenger numbers jump 9% in December

Ryanair passenger numbers jump 9% in December

(Sharecast News) - Budget airline Ryanair reported a 9% jump in December passenger numbers on Wednesday. Traffic rose to 12.54 million from 11.52m in the same month a year earlier, while the load factor - which gauges how full the planes are - ticked down to 91% from...

Wizz Are passenger numbers soar in December

Wizz Are passenger numbers soar in December

(Sharecast News) - Hungary-based budget airline Wizz Air reported a strong rise in December passenger numbers as demand continued to rebound from the Covid pandemic. The company on Wednesday said it carried 4,964,857 passengers, an 18.8% increase year on year. For the...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!