green-and-beige-cord-1624895

CentralNic Group

LN: CNIC

Market Cap£336m

Last Close 116.5p

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

Powered by its privacy-safe approach to online marketing, CentralNic continues to deliver an attractive mix of growth, recurring revenues and strong cash conversion in an uncertain economic climate. CentralNic’s Q122 figures were marginally ahead of the April trading update, with gross revenues of US$157m (an 86% rise y-o-y) and net revenues increasing to US$40m (up 43% y-o-y), a 25.5% margin. Adjusted EBITDA increased by 83% to US$19m, a 46% net revenue margin (Q121: 36%, FY21: 39%) demonstrating CentralNic’s growing operating leverage. CentralNic trades on an undemanding rating with management confident of the full-year outlook.

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 15.0 N/A
2021A 410.5 46.3 31.9 10.69 13.5 210.1
2022E 573.5 65.9 51.1 14.46 10.0 25.0
2023E 672.4 76.0 62.5 16.12 8.9 13.6
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 30/06/2022
Content on CentralNic Group
CentralNic – executive interview
TMT | Edison TV | 5 May 2022
CentralNic Group – 51% organic revenue growth in Q122
TMT | research Update | 26 April 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) 59.7
Forecast gearing ratio (%) 31
Price performance
%
1m
3m
12m
Actual (6.4) (4.1) 38.8
Relative* (0.2) 1.9 41.4
52-week high/low 149.9p/83.9p
*% relative to local index
Key management
Iain McDonald Chairman
Ben Crawford CEO
Michael Riedl CFO
Don Baladasan Group managing director