CLIQ Digital

DB: CLIQ

Market Cap€133.8m

Last Close €20.55

CLIQ Digital is a leading direct marketing and sales organisation for digital products, with its own global payments and distribution platform. It works in 34 countries. In Q321, 42% of sales were generated in Europe, 49% in North America, and 9% in other regions.

Investment summary

CLIQ Digital’s Q3 results were strong, with gross revenue of €40m (+35% y-o-y, +21% q-o-q) and EBITDA of €7.4m (+63% y-o-y), growing in line with management’s raised FY21 guidance announcement. On a nine-month basis, gross revenue was €103m (+34% y-o-y) and EBITDA was €19m (+75% y-o-y), reflecting management’s increased marketing spend, focus on direct media buying and its enriched content offering. During the quarter, CLIQ has signed licensing deals adding over 360 movies and 500 cloud games to its all-in-one platform. CLIQ announced further content deals in November, encompassing more live sports, children’s entertainment and documentaries.

Y/E Dec	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2019A	44.3	5.8	3.9	35.0	58.7	51.0
2020A	81.5	15.9	14.4	114.0	18.0	8.6
2021E	127.0	27.7	26.5	263.0	7.8	9.1
2022E	169.4	34.3	33.0	345.0	6.0	6.8

Industry outlook

Demand for mobile entertainment has grown rapidly over the last decade, particularly in 2020 due to COVID-19 and related lockdowns. Smartphone penetration, which is now at 78% of the global population, has been key to driving demand. Cloud-gaming is one of CLIQ’s current primary focuses, where Grand View Research’s forecasts for global sales growth of 48% y-o-y until 2027.

Last updated on 21/01/2022