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. 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.
TMT |
Flash note
TMT |
edison tv
TMT |
Update
Ben Bos
Board member
Sebastian McCoskrie
Head of IR
Forecast net cash (€m)
35.1
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (0.6) | (26.3) | (34.1) |
Relative | 1.3 | (30.5) | (41.6) |
52 week high/low | €28.2/€13.5 |
CLIQ Digital showed robust revenue and profit growth in FY23 despite a more challenging backdrop. Revenue was below management guidance and Edison estimates, but profits were in line. Margins dipped only slightly despite higher advertising bidding prices (ie customer acquisition costs). Management announced a share buyback programme of up to €13m in place of a dividend to generate returns for shareholders and also for tax efficiency reasons. We have adjusted out FY24 forecasts to reflect management’s updated guidance and have introduced our FY25 forecasts.
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 | 3.6 | 2.3 |
2023A | 326.4 | 50.3 | 45.0 | 483.96 | 3.3 | 1.9 |
2024E | 375.3 | 56.0 | 51.6 | 543.79 | 2.9 | 1.9 |
2025E | 439.1 | 65.5 | 59.7 | 628.13 | 2.5 | 1.6 |