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CentralNic Group

LN: CNIC

Market Cap£309m

Last Close 123p

Leading global domain name services provider CentralNic operates via two divisions: Online Presence provides domain names, hosting, websites, email, security certification and brand protection; and Online Marketing helps domain name owners monetise online traffic using an anonymised, privacy protected marketing platform.

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Investment summary

After a strong H121, management expects CentralNic to deliver revenue and profits for the year ‘at least at the upper end of market expectations’. Following its FY20 investment programme, the company delivered 20% y-o-y organic growth in H121, with all business lines contributing. Reflecting continuing strong growth, we have raised our FY21 and FY22 revenue targets to US$350m and US$379m, respectively, while adjusted EBITDA rises slightly to US$41.1m and US$45.2m. On our revised estimates, CentralNic’s shares continue to trade well below its web services and online marketing peers, despite our estimate for current year growth of 45%.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 109.2 17.9 16.1 9.24 18.2 N/A
2020A 241.2 30.6 19.8 10.57 15.9 N/A
2021E 350.1 41.1 27.8 11.01 15.3 N/A
2022E 378.8 45.2 30.9 11.40 14.7 N/A
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 20/10/2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 80
Forecast gearing ratio (%) 66
Price performance
%
1m
3m
12m
Actual 10.8 39.0 55.2
Relative* 7.3 32.7 24.9
52-week high/low 125.5p/73.0p
*% relative to local index
Key management
Iain McDonald Chairman
Ben Crawford CEO
Michael Riedl CFO
Don Baladasan Group managing director