Cliq Digital AG (DE:CLIQ)’s FY17 results were slightly short of guidance and consensus estimates, yet still delivered 23% increase in net income underpinned by improved marketing efficiency and lower overall marketing spend in H217. With new products launched in Q118 and the benefit of the recent acquisitions, CLIQ plans to increase marketing spend again in FY18, key to delivering its target for another year of double-digit improvements to net income. While the backdrop of increasing media spend accountability has affected the overall sector rating, CLIQ trades at a 30%+ discount to peers on a multiples basis. Evidence of delivery to plan could prompt a re-rating.
FY17 results: Acquisitions drive growth
Driven by double-digit ARPU growth and a 24% y-o-y increase in the customer base value, mainly from the UME acquisition, CLIQ reported an 8% and 23% improvement to revenues and net income, respectively. Lower marketing spend and an elongated integration time for new products in Q4 meant revenues did not meet the 10%+ guided to by management or the 20% forecast by consensus. Organic performance was muted, with revenues down by 3.5%. Net debt stands at €5.5m, substantially down from €10.6m at year-end 2016.
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