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CentralNic Group

LN: CNIC

Market Cap£329m

Last Close 131p

CentralNic Group provides the essential tools for businesses to go online, operating through two divisions: Online Presence (Reseller, Corporate, and SME); and Online Marketing. Services include domain name reselling, hosting, website building, security certification and website monetisation.

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Investment summary

Driven by its investment programme, CentralNic delivered record like-for-like organic revenue growth throughout FY21 (Q121: 16%; H121: 20%; 9M21: 29%), culminating in 37% organic growth for FY21. Management expects to report FY21 revenue of c US$410m (7% above our forecast of US$384m) and adjusted EBITDA of c US$45m (5% above our forecast of US$43m), implying year-on-year growth of 70% and 47%, respectively. The adjusted FY21 EBITDA margin of 11.0% softened from 11.7% in H121 and 12.7% in FY20. Although a revenue breakdown was not provided, we assume this results from the continued outperformance of Online Marketing over Online Presence. Net debt fell to US$76m from US$85m, despite c US$20m spent on the acquisitions of Safebrands, Wando, the White & Case website portfolio and NameAction, as well as payment of the final consideration for Team Internet. Adjusted operating cash conversion remained over 100%. We will review our forecasts with the FY21 preliminary results, expected on 28 February 2022.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 109.2 17.9 16.1 8.97 19.4 N/A
2020A 241.2 30.6 19.8 10.16 17.2 N/A
2021E 384.1 43.0 29.7 10.53 16.5 46916.1
2022E 420.2 48.0 33.6 11.16 15.6 28322.0
Industry outlook

CentralNic supplies the tools needed for businesses to develop their online presence, providing domain names, hosting, websites, email, security certification, brand protection and marketing. It delivers services to c 40m domains, with cross-selling and upselling important drivers of future growth – organic growth is supported by M&A.

Last updated on 21/01/2022
Content on CentralNic Group
CentralNic Group – Ending a strong year at a gallop
TMT | Flash note | 17 January 2022
Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.
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Share price graph
Balance sheet
Forecast net debt (US$m) 0
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual (9.0) 3.2 31.0
Relative* (10.6) 0.3 18.1
52-week high/low 150.0p/81.0p
*% relative to local index
Key management
Iain McDonald Chairman
Ben Crawford CEO
Michael Riedl CFO
Don Baladasan Group managing director