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CentralNic Group

LN: CNIC

Market Cap£352m

Last Close 122p

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.

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Investment summary

CentralNic reported 62% organic revenue growth in H122, with gross revenues rising 93% y-o-y to US$335m and net revenues rising 51% to US$82m. Adjusted EBITDA rose 97% to US$39m (H121: US$20m), with adjusted EBITDA/net revenue increasing to 47%. Organic growth has continued to strengthen (H121: 20%, FY21: 39%, H122: 62%) as advertisers are driven to privacy-safe marketing solutions, such as CentralNic’s TONIC. With this continued high growth, following the H122 results, we raised our FY22 revenue forecast by 12% to US$642m and EBITDA to US$74m. We recognise that these forecasts may prove conservative, but given global economic uncertainties, we feel a degree of caution is in order.

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 14.5 N/A
2021A 410.5 46.3 31.9 10.69 13.0 203.0
2022E 642.3 74.1 58.7 16.13 8.6 17.4
2023E 736.4 84.7 70.7 17.63 7.9 11.1
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 organic growth driven by its privacy-safe digital marketing division, supported by M&A.

Last updated on 05/10/2022
Content on CentralNic Group
CentralNic Group – Acquisition of Aporia for up to US$19m
TMT | research Update | 15 September 2022
Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.
CentralNic Group – Organic growth momentum continues
TMT | research Update | 31 August 2022
Internet domain name registration. Online url address for business company. Com, biz, info, edu and other domains in hexes on abstract background.
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Share price graph
Balance sheet
Forecast net debt (US$m) 65.6
Forecast gearing ratio (%) 33
Price performance
%
1m
3m
12m
Actual 7.0 6.6 16.3
Relative* 11.1 7.0 22.2
52-week high/low 149.9p/106.9p
*% relative to local index
Key management
Iain McDonald Chairman
Ben Crawford CEO
Michael Riedl CFO
Don Baladasan Group managing director