CentralNic swings to operating profit as KeyDrive propels revenue leap

(Sharecast News) - CentralNic Group on Monday said it was trading at the top end of its full-year expectations as it reported a swing to an interim operating profit after its revenue leapt higher on the back of its acquisition of KeyDrive.
The global internet platform reported an operating profit of $2.4m for the six month period ending 30 June, which marked an improvement from the loss of $1.4m seen during the same period last year, as revenue leapt by 225% to $49.7m.

Consequently, CentralNic's management was confident that the full-year result should be around the top end of the current range of analyst forecasts.

Meanwhile, the AIM traded company said its adjusted earnings before interest, taxes, depreciation & amortisation increased by 203% to $9.2m, driven by a combination of growth from its KeyDrive acquisition and underlying organic growth of around 6%.

CentralNic acquired KeyDrive in August last year for an initial $35.8m as well as a deferred consideration of up to $10.5m.

Losses before tax improved from $1.9m to $1.6m despite an increase in its net finance costs from $0.5m to $4.0m.

Ben Crawford, chief executive of CentralNic, said: "These outstanding results not only demonstrate that CentralNic can source and complete transformative acquisitions, but that it can also integrate them successfully while continuing to deliver organic growth. Moreover, as we scale up rapidly, the underlying qualities of high recurring revenues and excellent cash conversion become increasingly meaningful."

Crawford added that CentralNic's pipeline of future deals remains strong, while its net debt level remains comfortable particularly given current profitability of the existing CentralNic Group and the expected contribution from recent acquisitions.

CentralNic Group shares were up 1.76% at 54.95p at 1237 BST.