CLIQ Digital (SCALE: CLIQ)

Currency in EUR

Last close As at 25/01/2023

EUR27.25

−0.75 (−2.68%)

Market capitalisation

EUR182m

CLIQ Digital uses online advertising to sell subscription-based streaming services bundling movies and series, music, audiobooks, sports and games to consumers in over 30 countries, using content licensed from partners.

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 83% of the global population, has been key to driving demand. Mobile gaming is the largest segment and a focus area for CLIQ, and here the value of the global market is forecast to grow from US$1.5bn in FY21 to US$6.3bn by FY24 (Statista).

Sector

TMT

Equity Analyst

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)

2.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 10.5 46.7 47.1
Relative 2.2 26.9 47.6
52 week high/low €32.9/€16.6

Financials

CLIQ Digital delivered strong revenue growth and record EBITDA in 9M22, as targeted marketing spend continued to drive the take up of its subscription-based multi-content streaming web portals. The results were boosted by particularly strong year-on-year growth in North America of 117%. We raised our FY22 revenue and EBITDA forecasts by 10% and 15%, respectively, to reflect the strong growth delivered year to date, while noting that management has left its formal guidance unchanged. cliq.de, the new German multi-content portal, to be priced at €6.99 per month, will be launched on 15 December after extended stress testing. The shares continue to trade at a marked discount to the peer group.

Y/E Dec Revenue (€m) EBITDA (€m) PBT (€m) EPS (fd) (c) P/E (x) P/CF (x)
2020A 107.0 15.9 14.4 116.00 23.5 11.2
2021A 150.0 27.2 25.3 271.36 10.0 6.6
2022E 275.0 43.5 40.9 416.67 6.5 4.1
2023E 307.5 51.0 48.5 494.62 5.5 3.5

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