Cliq Digital AG (DE:CLIQ)’s H117 results reflect a continuation of the strong organic growth delivered in Q117 and one month’s contribution from the recently acquired Universal Mobile Enterprises (UME), leaving the group comfortably on track to deliver management’s full-year guidance for double-digit growth across all key P&L lines, which it has reiterated. The shares trade at a slight discount to the peer group average FY17 P/E; but given the solid H1 results and potential upgrades to consensus following the UME deal, the shares may resume their upwards trajectory.
H117 results – 40% increase in customer base value
Consistent with its Q117 figures, CLIQ reported a strong set of H117 results. Including one month’s contribution from the recently acquired UME, revenues increased 12%, EBIT 11% and net income 24% y-o-y. Despite the fall in marketing spend, the all-important ‘CLIQ factor’ nudged up to 1.48 (from 1.45), indicating continued improvements in the efficiency of marketing spend, and the customer base value increased by 40% (of which 11% was organic). Bank liabilities substantially reduced to €8.4m (FY16: €11.6m).
Guidance maintained – UME yet to be reflected
The solid organic performance in the first half puts the group on track to deliver management’s expectation of double-digit growth in revenues, EBIT and consolidated earnings in FY17. In addition, effective 1 June 2017, CLIQ acquired a 51% controlling interest in UME, a rapidly growing, profitable, mobile content marketing and distribution specialist, which reported revenues of €11.5m in the year to April 2017. Terms of the cash deal have not been disclosed; however, it should provide further support to earnings momentum and is yet to be reflected in consensus estimates.
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