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Trading ‘comfortably’ on track for FY22

CentralNic Group 25 May 2022 Flash note
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CentralNic Group

Trading ‘comfortably’ on track for FY22

Q122 results

Software & comp services

25 May 2022



Market cap



Net debt (US$m) at 31 March 2022


Shares in issue
(excludes 17.3m EBT shares)


Free float




Primary exchange


Secondary exchange


Share price performance

Business description

CentralNic Group provides the essential tools for businesses to go online, operating through two divisions: online presence (reseller, corporate and SME); and online marketing. Services include domain name reselling, hosting, website building, security certification and website monetisation.


Richard Williamson

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5700

CentralNic Group is a research client of Edison Investment Research Limited

Powered by its privacy-safe approach to online marketing, CentralNic continues to deliver an attractive mix of growth, recurring revenues and strong cash conversion in an uncertain economic climate. CentralNic’s Q122 figures were marginally ahead of the April trading update, with gross revenues of US$157m (an 86% rise y-o-y) and net revenues increasing to US$40m (up 43% y-o-y), a 25.5% margin. Adjusted EBITDA increased by 83% to US$19m, a 46% net revenue margin (Q121: 36%, FY21: 39%) demonstrating CentralNic’s growing operating leverage. We expect to see a bond refinancing over the summer, which should deliver a meaningful reduction in interest payments. Otherwise, CentralNic trades on an undemanding rating of 7.7x FY22 EV/adjusted EBITDA and 10.3x FY22 P/E, with management confident of the full-year outlook. Despite three acquisitions in Q122, the group retains plenty of headroom for more M&A.

Year end

Revenue (US$m)


































Note: *Excludes impact of share-based payments, share option expense, foreign exchange charges and non-core operating costs.

Cash generation remained strong, with adjusted operating cash conversion of 128%, above CentralNic’s targeted average of 100%. As a result, net debt fell to US$61m, from US$75m on 31 December 2021 with leverage reducing from 2.2x at 31 December 2021 to 1.6x at 31 March 2022.

Q122 LTM group organic growth was raised from the trading update to c 53%, with online marketing delivering 83% LTM organic growth, largely driven by the TONIC media buying business, and online presence delivering 7%. Despite this disparity in growth between the two divisions, management noted that growth in domain name sales had accelerated markedly, with the revenue share for value-added services remaining stable at 8%. Meanwhile online marketing saw one billion visitor sessions in Q122 (a 54% increase) and a 104% increase in revenue per thousand sessions to US$98m.

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