DJ EQS-News: CLIQ Digital Reports First Quarter 2024 Results

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EQS-News: Cliq Digital AG / Key word(s): Quarter Results
CLIQ Digital Reports First Quarter 2024 Results
2024-05-08 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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]                             7%  14% 
Profit for the period^1                       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 widespreadrefund 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 verystrong 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 periodamounted to EUR31 million (4Q 2023: EUR34 million), which as a percentage of revenue was 43% (4Q 2023: 41%). The highercustomer acquisition costs for the period in per cent of revenue reflected tougher market conditions, which led toa 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 (4Q2023: EUR12 million) with a normalised EBITDA margin of 7% (4Q 2023: 14%) mainly due to the sales decline. ReportedEBITDA was EUR2 million. The special items related to the Group's transformation programme, including the closure ofthe U.K. office and the hiring of additional contract workers for technology integration and optimisation as wellas 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 EPSwas EUR0.02. . Cash flow & liquidity: Operating free cash flow in 1Q 2024 was -EUR4 million (4Q 2023: EUR4 million). Cashflow from financing activities included EUR1 million for the repurchase of c.65 thousand shares from the Group'sshare buyback programme. As at 31 March 2024, the net cash position of the Group totalled EUR10 million (31/12/2023:EUR16 million). 

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Operational indicators . Lifetime value of a customer: In 1Q 2024, the expected average lifetime value of a customer (LTV) forbundled- and single-content services was down 7% quarter-on-quarter to EUR81 (4Q 2023: EUR87). The decrease was mainlydue to the higher churn rate of members. . Paid memberships: The number of unique paid memberships per 31 March 2024 for bundled- and single-contentstreaming services decreased to 1.1 million (31/12/2023: 1.2 million) as the result of a more widespread refundprogramme 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 thehigher-than-anticipated churn of the existing member base. The LTVCB represents the expected sales to be generatedfrom 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") toimprove both its cost efficiencies and productivity gains. The main objective of the programme is to fundamentallytransform the Group to become more focused, streamlined, and goal-driven. As an initial cost-savings measure and toimprove 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 onoperational improvements required across the Group. The Group will focus on new sales channels (the 'MagnificentSeven') 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

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Half-year financial report 2024 and video conference Thursday 8 August 2024
Financial report Q3/9M 2024 and video conference Thursday 7 November 2024
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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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2024-05-08 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

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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

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1898035 2024-05-08 CET/CEST

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