CLIQ Digital (SCALE: CLIQ)

Last close As at 21/05/2024

EUR8.60

−0.38 (−4.23%)

Market capitalisation

EUR56m

CLIQ Digital is a leading online performance marketing company selling subscription-based streaming services that bundle movies & series, music, audiobooks, sports and games globally. In FY23, 33% of sales were generated in Europe, 60% in North America, 4% in Latin America and 2% in other regions.

Demand for mobile entertainment has grown rapidly over the last decade, boosted by increased smartphone penetration, now at 84% of global mobile users (Statista). While boundaries between types of content are becoming increasingly blurred, mobile gaming is the largest segment. In H223 larger content subscription services saw a return to subscriber base growth despite increased subscription prices and more limited password sharing.

Latest Insights

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TMT | Flash note

CLIQ Digital — More profitable customers in FY23

TMT | edison tv

CLIQ Digital: executive interview

Hello - cliq

Sector

TMT

Equity Analyst

Milo Bussell

Analyst, Consumer and TMT

Fiona Orford-Williams

Fiona Orford-Williams

Director, TMT

Key Management

  • Ben Bos

    Board member

  • Sebastian McCoskrie

    Head of IR

Balance Sheet

Forecast net cash (€m)

16.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (33.4) (53.6) (66.7)
Relative (37.0) (57.8) (71.2)
52 week high/low €27.6/€8.4

Financials

CLIQ Digital delivered a disappointing start to FY24 in Q124, as its membership base fell following a change in refund programmes from credit card providers, making it easier for subscribers to cancel. Revenues fell 12%, while marketing expenses, a key growth driver for CLIQ, dropped 9% as management sought to protect its gross margin. The adjusted EBITDA margin fell to 7%, driven by the decline in sales. Management has initiated its Fit for Future transformation strategy to drive operational efficiencies, while diversifying its marketing channels from traditional display advertising into search engine advertising (SEA), affiliation and B2B partnerships. The company has cut FY24 revenue guidance by 13–17%, while EBITDA is now expected to be 48–50% lower than previously. Consequently, we have lowered our forecasts, now anticipating revenue of €305m and EBITDA of €26m in FY24 and revenue of €329m and EBITDA of €30m in FY25.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2022A 276.1 43.5 40.9 445.38 1.9 1.2
2023A 326.4 50.3 45.0 483.96 1.8 1.1
2024E 305.1 26.1 20.2 206.73 4.2 2.2
2025E 329.3 29.5 24.6 253.79 3.4 1.9

Further insights

insight

TMT

CLIQ Digital: EKF 2023 QuickView

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022 CMT

insight

Consumer

Deutsches Eigenkapitalforum (EKF) 2022

Thematics

thematic

TMT

MediaWatch – Rinse and repeat

thematic

TMT

MediaWatch – Still waiting…

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