CLIQ Digital

CLIQ Digital (SCALE: CLIQ)

Currency in EUR

Last close As at 22/09/2023

EUR19.34

▲ −0.46 (−2.32%)

Market capitalisation

EUR126m

Overview
Price performance
Financials
Research
Sector insights
Thematics

CLIQ Digital sells subscription-based streaming services that bundle movies and series, music, audiobooks, sports and games to consumers globally. In FY22, 37% of sales were generated in Europe, 57% in North America and 6% in other regions.

Demand for mobile entertainment has grown rapidly over the last decade, boosted by increased smartphone penetration, now at 84% of the global mobile users (Statista). While boundaries between types of content are becoming increasingly blurred, mobile gaming is the largest segment. The larger content subscription services have been struggling to maintain momentum in their subscriber base and have been pushing up subscription prices and limiting password sharing to protect revenues.

Latest Insights

TMT |
Update

08.08.23

CLIQ Digital — Focusing on more profitable subscribers

TMT |
Update

05.05.23

CLIQ Digital — Bundled content driving sales and profit growth

TMT |
Update

27.02.23

CLIQ Digital — Streaming ahead

TMT |
Flash note

01.02.23

CLIQ Digital — Progress made against KPIs

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Sector

TMT

Equity Analyst

Fiona Orford-Williams

Director, TMT

Key Management

Ben Bos

Board member
Sebastian McCoskrie

Head of IR

Balance Sheet

Forecast net cash (€m)

16.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(5.2)	(24.6)	(16.3)
Relative	(5.7)	(22.0)	(31.6)
52 week high/low	€30.9/€16.6

Financials

CLIQ Digital delivered robust growth in H123, with 37% y-o-y growth in both revenue and EBITDA at a maintained margin of 15.8%. Growth continues to be driven by marketing spend and investment into evolving the bundled content offering. Given a more competitive bidding market, management is focusing on acquiring customers with a higher lifetime value to create a more profitable subscriber base. Management has reiterated both its FY23 and mid-term FY25 guidance and our headline forecasts remain unchanged. Despite CLIQ’s share price performance faring better than the peer average valuation, it remains at a significant discount to peers on both EV/sales and EV/EBITDA multiples. In our view there continues to be significant upside to the current share price on our current estimates.