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Currency in EUR
Last close As at 24/03/2023
EUR27.85
▲ −0.45 (−1.59%)
Market capitalisation
EUR184m
Research: TMT
CLIQ’s FY21 trading update highlights that the group has both exceeded management’s guidance and met our forecasts for all its core key performance indicators (KPIs), following a strong Q4 across all regions. Increased marketing spend, its direct media buying strategy and enriched content on its platform across all channels drove top-line growth. Direct media buying also led to margin improvements throughout the year by cutting fees paid to affiliates. Management expects this strong momentum to continue into FY22, which we have reflected in our revenue forecasts.
CLIQ Digital |
CLIQing the nail on the head |
FY21 trading update |
Media |
4 February 2022 |
Share price performance
Business description
Next events
Analysts
CLIQ Digital is a research client of Edison Investment Research Limited |
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CLIQ’s FY21 trading update highlights that the group has both exceeded management’s guidance and met our forecasts for all its core key performance indicators (KPIs), following a strong Q4 across all regions. Increased marketing spend, its direct media buying strategy and enriched content on its platform across all channels drove top-line growth. Direct media buying also led to margin improvements throughout the year by cutting fees paid to affiliates. Management expects this strong momentum to continue into FY22, which we have reflected in our revenue forecasts.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/19 |
63.1 |
3.9 |
0.4 |
0.3 |
69.3 |
1.1 |
12/20 |
107.0 |
14.4 |
1.2 |
0.5 |
21.4 |
1.9 |
12/21e |
149.9 |
26.5 |
2.7 |
1.1 |
9.3 |
4.3 |
12/22e |
210.3 |
32.1 |
3.4 |
1.4 |
7.3 |
5.5 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Finishing FY21 strongly
Gross revenue in FY21 grew c 40% y-o-y to c €150m, ahead of the raised guidance of €145m which management gave in September and in line with our forecast. Growth benefited from a strong Q4, which saw revenue increase 55% to €47m and several content deals across sport, family entertainment and games. Management believes the investments made in its content offering also led to improved customer retention throughout the year. Marketing spend, which directly influences its core KPIs, was up 59% y-o-y to €54m and up 67% y-o-y in Q4 to c €20m. Its strategy of direct media buying, rather than affiliate marketing, continued to deliver margin improvements throughout the year due to the reduction in fees paid to affiliates. CLIQ ended the year debt free, supported by free cash flow of €18m, ahead of our FY21 forecast of €14m.
FY22 guidance reflects investment in the platform
Management’s outlook highlights that it expects momentum to continue into FY22, forecasting revenue of €210m (+40% y-o-y) and EBITDA of €33m (+22% y-o-y) for the year. We have upwardly revised our FY22 forecasts, as we believe that CLIQ can continue momentum in its existing markets with the potential to expand to new geographies. Our forecasts also reflect its acquisition of the remaining 20% minority shareholding in Red27 Mobile, which CLIQ believes will lead to greater sales opportunities. Management’s new guidance shows a y-o-y EBITDA margin reduction of 3pp to 15%, suggesting that it may look to invest significantly in its platform and content offering.
Valuation: Trading at a discount to peers
On sales and EBIT, CLIQ trades on FY22e EV multiples of 0.7x and 4.7x, representing a discount of 67% and 72% respectively to our peer group. Its share price is now flat ytd but is still 20% higher than the peer group average of -20%.
Exhibit 1: Financial summary
€m |
2018 |
2019 |
2020 |
2021e |
2022e |
||
31-December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
|||||||
Gross revenue |
|
|
58.2 |
63.1 |
107.0 |
149.9 |
210.3 |
Revenue |
|
|
39.1 |
44.3 |
81.5 |
127.0 |
189.5 |
Cost of Sales |
(42.1) |
(44.3) |
(72.0) |
(87.9) |
(120.6) |
||
Gross Profit |
16.2 |
18.8 |
34.9 |
62.0 |
89.8 |
||
EBITDA |
|
|
3.9 |
5.8 |
15.9 |
27.7 |
33.4 |
Normalised operating profit |
|
|
3.0 |
4.8 |
15.2 |
27.1 |
32.7 |
Reported operating profit |
3.0 |
4.8 |
15.2 |
27.1 |
32.7 |
||
Net Interest |
0.4 |
(0.9) |
(0.8) |
(0.6) |
(0.6) |
||
Profit Before Tax (norm) |
|
|
3.4 |
3.9 |
14.4 |
26.5 |
32.1 |
Profit Before Tax (reported) |
|
|
3.4 |
3.9 |
14.4 |
26.5 |
32.1 |
Reported tax |
(0.4) |
0.0 |
(4.0) |
(8.3) |
(10.0) |
||
Profit After Tax (norm) |
3.0 |
3.9 |
10.4 |
18.2 |
22.1 |
||
Profit After Tax (reported) |
3.0 |
3.9 |
10.4 |
18.2 |
22.1 |
||
Minority interests |
0.8 |
1.7 |
3.3 |
0.4 |
0.5 |
||
Net income (normalised) |
2.2 |
2.2 |
7.2 |
17.8 |
21.6 |
||
Net income (reported) |
2.2 |
2.2 |
7.2 |
17.8 |
21.6 |
||
Average number of shares outstanding (m) |
6.2 |
6.2 |
6.2 |
6.7 |
6.3 |
||
EPS - basic (€) |
|
|
0.35 |
0.36 |
1.16 |
2.67 |
3.41 |
EPS - normalised fully diluted (€) |
|
|
0.34 |
0.35 |
1.14 |
2.63 |
3.36 |
Dividend (€) |
0.00 |
0.28 |
0.46 |
1.07 |
1.36 |
||
Revenue growth (%) |
(-17.5) |
8.5 |
69.4 |
40.2 |
40.3 |
||
Gross Margin (%) |
27.8 |
29.8 |
32.7 |
41.3 |
42.7 |
||
EBITDA Margin (%) |
6.6 |
9.1 |
14.9 |
18.5 |
15.9 |
||
Normalised Operating Margin |
5.1 |
7.6 |
14.2 |
18.1 |
15.6 |
||
BALANCE SHEET |
|||||||
Fixed Assets |
|
|
52.8 |
52.9 |
55.2 |
57.0 |
57.7 |
Intangible Assets |
0.9 |
0.7 |
0.8 |
0.8 |
0.6 |
||
Tangible Assets |
1.3 |
0.7 |
2.2 |
3.2 |
3.9 |
||
Goodwill & other |
50.6 |
51.5 |
52.3 |
53.0 |
53.2 |
||
Current Assets |
|
|
12.9 |
15.2 |
21.7 |
31.8 |
46.3 |
Receivables |
6.5 |
8.2 |
9.1 |
12.7 |
13.4 |
||
Cash & cash equivalents |
1.3 |
0.7 |
4.9 |
9.0 |
0.5 |
||
Other |
5.1 |
6.3 |
7.7 |
10.1 |
32.4 |
||
Current Liabilities |
|
|
(8.0) |
(8.7) |
(12.9) |
(14.0) |
(14.6) |
Creditors |
(2.3) |
(2.0) |
(2.0) |
(2.8) |
(3.5) |
||
Tax |
(1.2) |
(1.1) |
(3.2) |
(3.5) |
(3.5) |
||
Borrowings |
(8.1) |
0.0 |
0.0 |
0.0 |
0.0 |
||
Provisions |
(0.0) |
0.0 |
(0.4) |
(0.4) |
(0.4) |
||
Other |
(4.6) |
(5.6) |
(7.3) |
(7.3) |
(7.3) |
||
Long Term Liabilities |
|
|
(1.8) |
(12.7) |
(8.5) |
(10.3) |
(10.1) |
Long term borrowings |
0.0 |
(9.9) |
(3.8) |
(5.9) |
(5.6) |
||
Other long-term liabilities |
(1.8) |
(2.8) |
(4.7) |
(4.5) |
(4.5) |
||
Net Assets |
|
|
55.9 |
46.7 |
55.6 |
64.5 |
79.3 |
Minority interests |
0.8 |
2.0 |
4.8 |
1.2 |
1.7 |
||
Shareholders’ equity |
|
|
56.7 |
48.7 |
60.5 |
65.7 |
80.9 |
CASH FLOW |
|||||||
Op Cash Flow before WC and tax |
4.2 |
4.8 |
15.1 |
27.1 |
32.8 |
||
Working capital |
3.2 |
(1.9) |
1.6 |
(2.8) |
0.0 |
||
Exceptional & other |
(0.7) |
0.9 |
0.9 |
(0.2) |
(20.4) |
||
Tax |
(2.9) |
(1.3) |
(2.8) |
(8.9) |
(10.6) |
||
Operating cash flow |
|
|
3.8 |
2.5 |
14.8 |
15.2 |
1.8 |
Capex |
(0.6) |
(0.4) |
(0.7) |
(0.8) |
(0.8) |
||
Acquisitions/disposals |
(0.5) |
(3.4) |
0.0 |
(6.0) |
0.0 |
||
Net interest |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Equity financing |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Dividends |
0.0 |
0.0 |
(2.1) |
(7.1) |
(8.7) |
||
Other |
(4.0) |
(1.6) |
(1.5) |
(0.1) |
(0.5) |
||
Net Cash Flow |
(1.2) |
(2.9) |
10.5 |
1.2 |
(8.2) |
||
Opening net debt/(cash) |
|
|
5.5 |
6.8 |
9.2 |
(1.1) |
(2.4) |
FX |
(0.0) |
0.0 |
(0.0) |
0.0 |
0.0 |
||
Other non-cash movements |
0.0 |
0.4 |
(0.1) |
0.1 |
0.0 |
||
Closing net debt/(cash) |
|
|
6.8 |
9.2 |
(1.1) |
(2.4) |
5.1 |
Source: CLIQ Digital, Edison Investment Research
|
|
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