green-and-beige-cord-1624895

CentralNic Group

LN: CNIC

Market Cap£332m

Last Close 115p

CentralNic’s two divisions help businesses go online: Online Presence (reseller, corporate and SME) and Online Marketing. Services include domain name reselling, hosting, website building, security certification and website monetisation.

More CentralNic Group content >

Investment summary

As part of a broader vertical integration strategy, disintermediating its value chain to create a more efficient ecosystem, CentralNic has announced the acquisition of MA Aporia, a media and native advertising company. CentralNic is paying an initial cash consideration of US$11.2m, together with performance payments of up to US$7.8m for FY22–24. This implies an initial FY21 EV/EBITDA multiple of 5.6x. The acquisition will be immediately earnings accretive. As Aporia is already an exclusive supplier to CentralNic, the transaction will increase CentralNic’s margins but will have no impact on revenue. Aporia generated FY21 revenue of US$35m, gross profit of US$3.5m and EBITDA of US$2.0m. Despite CentralNic’s continuing momentum (H122 organic growth of 62%), the group trades on c 5.9x FY22 EV/EBITDA and a P/E of 8.0x.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 240.0 29.4 18.6 9.57 14.1 N/A
2021A 410.5 46.3 31.9 10.69 12.6 196.7
2022E 642.3 74.1 58.7 16.13 8.4 16.9
2023E 736.4 84.7 70.7 17.63 7.6 10.7
Industry outlook

CNIC supplies the tools needed for businesses to develop their online presence and generate revenues through online marketing. It delivers services to c 40m domain names, with building marketplaces facilitating cross-selling and upselling important drivers of future growth – organic growth is supported by M&A.

Last updated on 25/09/2022
Content on CentralNic Group
CentralNic Group – Acquisition of Aporia for up to US$19m
TMT | research Update | 15 September 2022
Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.
CentralNic Group – Organic growth momentum continues
TMT | research Update | 31 August 2022
Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.
View more
Register to receive research on CentralNic Group as it is published
Share price graph
Balance sheet
Forecast net debt (US$m) 65.6
Forecast gearing ratio (%) 33
Price performance
%
1m
3m
12m
Actual (0.9) (2.5) 1.9
Relative* 5.8 (1.9) 8.0
52-week high/low 149.9p/104.9p
*% relative to local index
Key management
Iain McDonald Chairman
Ben Crawford CEO
Michael Riedl CFO
Don Baladasan Group managing director