Published on: July 20, 2021

Strong H1 as Kape gathers further momentum

Kape’s trading update for the first half of its current financial year confirms that the Group continues to show strong growth in line with management’s expectations for the full year. Consequently, we leave our estimates – which sit in the existing guidance range for revenue and Adj EBITDA – unchanged. The integration of Webselenese is ‘progressing well’ and has already realised a reduction in average customer acquisition costs for the Group. We also note the recent content provision agreement that Private Internet Access (PIA) has concluded with 3 Hong Kong, a subsidiary of the Hutchinson Group, which added another string to Kape’s bow. With a new debt facility secured during Q2 and the significant organic opportunities that the transformational and accretive acquisition of Webselenese has brought, we expect to see Kape continue its strong performance during the second half.

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