Edison Investment Research - CLIQ Digital (CLIQ) CLIQ Digital - Focusing on more profitable subscribers

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Edison Investment Research

Richard Williamson

CLIQ Digital - Focusing on more profitable subscribers

CLIQ Digital delivered robust growth in H123, with 37% year-on-year growth in both revenue and EBITDA at a maintained margin of 15.8%. Growth continues to be driven by growing marketing spend and investment into evolving the bundled content offering. Given a more competitive bidding market, management is focusing on acquiring customers with a higher lifetime value to create a more profitable subscriber base. Management has reiterated both its FY23 and mid-term FY25 guidance and our headline forecasts remain unchanged. Despite CLIQ’s share price performance faring better than the peer average valuation, it remains at a significant discount to peers on both EV/sales and EV/EBITDA multiples. In our view there continues to be significant upside to the current share price on our current estimates.

08/08/2023 1 EN

Underlying

CLIQ Digital

Cliq Digital AG. CLIQ Digital AG is a Germany-based company engaged in the software industry. The Company specializes in the provision of mobile entertainment with focus on games and other mobile value-added services. It divides its business into four product areas: Mobile Entertainment, providing realtones, wallpapers, celebrity gossip, weather updates, among others; Mobile Games offered following the premium model, as well as freemium service; Mobile Apps, covering various types of applications such as dating, discover, travel, sport, among others, and available for smartphone devices only; and Mobile Software for smartphones, comprising software applications, such as security products, document storage solutions, health apps and Voice Over Internet Protocol (VOIP) applications.

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DE000A0HHJR3 Germany

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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CLIQ Digital - Focusing on more profitable subscribers

Cliq Digital Ag: 1 director

CLIQ Digital - Expanding the multi-content offering

CLIQ Digital - Diversifying marketing channels

Zalaris - Continuing contract momentum in FY24

BlackRock Sustainable American Income Trust - Unique value/ESG fund at an attractive valuation

Northern Data Group - Continued progress as a diversified HPC provider

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