NuWays AG: CLIQ Digital AG | Rating: Buy

Original-Research: CLIQ Digital AG - from NuWays AG

Classification of NuWays AG to CLIQ Digital AG

Company Name: CLIQ Digital AG
ISIN: DE000A35JS40

Reason for the research: Update
Recommendation: Buy
from: 28.02.2024
Target price: 65.00
Target price on sight of: 12 Monaten
Last rating change:
Analyst: Marie-Thérèse Grübner

Solid FY figures & sizable share buyback; est. & PT chg.

Topic: CLIQ reported final FY23 figures on Thursday (update on prelims from Feb. 5th) and announced a € 13m share repurchase program. Here are our key takeaways:

Strong bundled content share boosts higher-LTV customer base. At 94% of FY23 total revenues (88% in FY22), bundled content across 25+ portals continued to grow its share of total revenues at the expense of single content (300+ portals), strengthening customer retention due to offering several streaming verticals “all-in-one.' This strategy has proven very rewarding over the past quarters and has increased LTV per customer by 17% yoy to now € 85. The company is on track to improve its content catalogue across all verticals, and particularly CLIQ’s position in cloud gaming looks promising since it capitalizes on the rapidly advancing market, expected to grow by 46% CAGR until 2030 (Statista).

2024e guidance & growth outlook. Management released a weaker-than-expected 2024 guidance of € 360-380m in revenues and € 52-58m EBITDA. Sales are now seen to come in at c. € 375m or +15% yoy (eNuW old: € 402m), while EBITDA should amount to c. € 55m or +10% yoy (eNuW old: 63m), mainly driven by (1) ongoing headwinds in traffic acquisition and conversion in a still challenging macroeconomic environment and (2) increased costs for both customer acquisition (eNuW: € 157m) as well as elevated licensing fees for higher-quality content (eNuW: € 64m). Having said that, several growth drivers should help the company reach its c. € 500m mid-term sales target along with strong EBITDA and cash flow generation, including further geographic expansion into Latin America and Asia (currently still You can download the research here:
http://www.more-ir.de/d/29001.pdf
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