KGN -15.22% out with a 1H25 trading update which was ahead of expectations in terms of gross sales, through eanrings (EBITDA) was around a ~7% miss due to a combination of increased marketing spend and apparently now resolved, implementation and technology challenges associated with Mighty Ape marketplace and loyalty.
- Revenue $272.7m ahead of $265.7m expected
- EBITDA $25.3m below $27.3m expected
- EBITDA margins 9.3% versus 10.3% expected which was the issue.
Overall, good top-line numbers and revenue is back to growth for the first time since COVID, but they still have persistent cost issues.
Still too soon to buy KGN ~$5, we think
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