CLIQ Digital Reports First Quarter 2024 Results

EQS-News: Cliq Digital AG / Key word(s): Quarter Results
CLIQ Digital Reports First Quarter 2024 Results

08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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CLIQ Digital Reports First Quarter 2024 Results

  * Significant 1Q 2024 performance decline attributed to more difficult
    market conditions

* Sales decrease q/q by 13% to EUR73m and normalised EBITDA down 55% to EUR5m

  * Group-wide transformation programme launched with focus on further
    diversification of sales channels

  * Revised FY 2024 outlook: Sales between EUR300m-EUR330m, EBITDA between
    EUR26m-EUR30m and total customer acquisition costs between EUR120-EUR140 million

DÜSSELDORF, 8 May 2024 - CLIQ Digital AG today publishes its first quarter
2024 unaudited financial report.

Performance

    in millions of EUR                             1Q    4Q     
                                               2024  2023
    Bundled-content                              70    80  -12%
    Single-content                                3     4  -30%

    North America                                48    54  -10%
    Europe                                       18    25  -30%
    Latin America                                 4     3    8%
    ROW                                           3     2  103%
    Sales                                        73    84  -13%
    Customer acquisition costs for the period   -31   -34   -9%
    EBITDA (normalised)                           5    12  -55%
    EBITDA margin(1)(1)                          7%   14%

    1. #_ftn1
    Profit for the period1                        3     7  -63%
    EPS (in EUR)1                                0.40  1.07  -62%
  * Sales: In 1Q 2024, Group sales decreased by 13% quarter-on-quarter to
    EUR73 million (4Q 2023: EUR84 million) mainly due to a higher-than-expected
    churn rate of members. The higher churn was because of a more widespread
    refund programme of the credit card companies, which resulted in a
    lower-than-expected lifetime value. Accordingly, European and North
    American sales in 1Q 2024 declined quarter-on-quarter. However, sales
    growth in Asia was very strong following the market entry at the end of
    last year.

  * Customer acquisition costs for the period: In 1Q 2024, the customer
    acquisition costs for the period amounted to EUR31 million (4Q 2023: EUR34
    million), which as a percentage of revenue was 43% (4Q 2023: 41%). The
    higher customer acquisition costs for the period in per cent of revenue
    reflected tougher market conditions, which led to a higher churn rate
    than anticipated that resulted in higher reported amortisation of
    contract costs in the period.

  * EBITDA: EBITDA before special items in 1Q 2024 decreased by 55%
    quarter-on-quarter to EUR5 million (4Q 2023: EUR12 million) with a
    normalised EBITDA margin of 7% (4Q 2023: 14%) mainly due to the sales
    decline. Reported EBITDA was EUR2 million. The special items related to
    the Group's transformation programme, including the closure of the U.K.
    office and the hiring of additional contract workers for technology
    integration and optimisation as well as for a Group tax optimisation
    programme.

  * Earnings per share: For 1Q 2024, basic EPS before special items
    decreased by 62% to EUR0.40 (4Q 2023: EUR1.07) on the back of a normalised
    profit for the period of EUR3 million (4Q 2023: EUR7 million). Reported
    basic EPS was EUR0.02.

  * Cash flow & liquidity: Operating free cash flow in 1Q 2024 was -EUR4
    million (4Q 2023: EUR4 million). Cash flow from financing activities
    included EUR1 million for the repurchase of c.65 thousand shares from the
    Group's share buyback programme. As at 31 March 2024, the net cash
    position of the Group totalled EUR10 million (31/12/2023: EUR16 million).

Operational indicators

  * Lifetime value of a customer: In 1Q 2024, the expected average lifetime
    value of a customer (LTV) for bundled- and single-content services was
    down 7% quarter-on-quarter to EUR81 (4Q 2023: EUR87). The decrease was
    mainly due to the higher churn rate of members.

  * Paid memberships: The number of unique paid memberships per 31 March
    2024 for bundled- and single-content streaming services decreased to 1.1
    million (31/12/2023: 1.2 million) as the result of a more widespread
    refund programme of the credit card companies.

  * Lifetime Value of Customer Base: As at 31 March 2024, the Lifetime Value
    of Customer Base (LTVCB) decreased to EUR136 million compared to prior
    year-end (31/12/2023: EUR164 million). The decrease was related to the
    higher-than-anticipated churn of the existing member base. The LTVCB
    represents the expected sales to be generated from paid memberships as
    at reporting date over their estimated individual remaining lifetime.

  * "Fit for Future": The Group has initiated a Group-wide transformation
    programme ("Fit for Future") to improve both its cost efficiencies and
    productivity gains. The main objective of the programme is to
    fundamentally transform the Group to become more focused, streamlined,
    and goal-driven. As an initial cost-savings measure and to improve the
    strategic alignment of the business operations towards bundled-content
    streaming services, the U.K. office was closed during the first quarter
    2024. Productivity gains will be generated by fully focussing on
    operational improvements required across the Group. The Group will focus
    on new sales channels (the 'Magnificent Seven') to adopt new and
    innovative marketing approaches to generate sales and earnings.

Share buyback programme

The Group will continue to buy back shares within the share buyback
programme initiated in February this year. This programme is testament to
CLIQ Digital's conviction in its operational strength and the objectives of
its growth strategy.

In the first quarter 2024, the Group repurchased 64,800 treasury shares at
an average share price of EUR17.50, which equalled 10% of the maximum buyback
volume and 1% of the total share capital. From 16 April until 3 May 2024
(included), CLIQ repurchased further 46,578 treasury shares at an average
share price of EUR15.21.

Revised outlook

For the full year 2024, organic Group sales are expected to be between EUR300
and EUR330 million (previously: EUR360 and EUR380 million). Total customer
acquisition costs are forecast to be between EUR120 and EUR140 million
(previously: between EUR150 and EUR170 million) and EBITDA is thereby expected
to range between EUR26 and EUR30 million (previously EUR52 and EUR58 million).

The mid-term Group sales target is to achieve a run rate during the fourth
quarter of 2025, which realises an annual revenue of more than EUR500 million
going forward.

Management Board statement

"The Group's performance in the first quarter was more disappointing than
originally expected," said Luc Voncken, CEO of CLIQ Digital AG. "Tougher
market conditions, weaker sales and special items for the Group-wide
transformation led primarily to the poor results. We have taken appropriate
action and we see the business recovering at present. I am confident and
committed to realise our revised 2024 guidance and mid-term target."

Earnings call

A live video webcast conducted in English will be held today at 2.00 p.m.
CEST with presentations from Luc Voncken, CEO, and Ben Bos, member of the
Management Board.

To register for this video webcast, please go to:

https://cliqdigital.zoom.us/webinar/register/WN_ROWOqQK5RzavFPrehYobbw

Questions submitted before 12.00 p.m. CEST via email to
investors@cliqdigital.com will be answered after the presentations.

A video recording of the webcast will be available shortly after the webcast
at: https://cliqdigital.com/investors/financials.

Contacts

Investor Relations:

Sebastian McCoskrie, s.mccoskrie@cliqdigital.com, +49 151 52043659

Media Relations:

Daniela Münster, daniela.muenster@h-advisors.global, +49 174 3358111

Financial calendar

     Half-year financial report 2024 and video    Thursd-      8 August
                                    conference         ay          2024
         Financial report Q3/9M 2024 and video    Thursd-    7 November
                                    conference         ay          2024

About CLIQ Digital

The CLIQ Digital Group is a leading online performance marketing company
that distributes subscription-based streaming services that bundle films &
series, music, audio books, sports and games to consumers worldwide. The
Group licences streaming content from partners, bundles it and sells the
content via its numerous streaming services. Over the years, CLIQ has become
a specialist in online advertising and the design of streaming services
tailored to specific consumer groups. CLIQ Digital operates in over 40
countries and employed 170 people from 40 different countries as of 31
December 2023. The company is headquartered in Düsseldorf and has offices in
Amsterdam, Paris and Toronto. CLIQ Digital is listed in the Scale segment of
the Frankfurt Stock Exchange (WKN: A35JS4, ISIN: DE000A35JS40) and is a
member of the MSCI World Micro Cap Index.

Visit our website https://cliqdigital.com/investors. Here you will find all
publications and further information about CLIQ Digital. You can also follow
us on LinkedIn.

(1) normalised


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   Language:       English
   Company:        Cliq Digital AG
                   Grünstraße 8
                   40212 Düsseldorf
                   Germany
   E-mail:         s.mccoskrie@cliqdigital.com
   Internet:       www.cliqdigital.com
   ISIN:           DE000A35JS40
   WKN:            A35JS4
   Indices:        Scale 30
   Listed:         Regulated Unofficial Market in Berlin, Dusseldorf,
                   Frankfurt (Scale), Hamburg, Munich, Stuttgart,
                   Tradegate Exchange
   EQS News ID:    1898035

End of News EQS News Service
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1898035 08.05.2024 CET/CEST