CentralNic Group plc (LON:CNIC), the global internet company which helps online consumers make informed choices, has provided an update for the six months ended 30 June 2023 and gives notice of the publication of its interim report for the six months ended 30 June 2023.
Trading update
The Group delivered another strong performance during the period and expects to report Gross Revenue of at least USD 396 million, Net Revenue (Gross Profit) of at least USD 91 million and Adjusted EBITDA1 of at least USD 44 million for the six months ended 30 June 2023. This represents an increase of 18%, 11% and 15% respectively compared to the six months ended 30 June 2022. Year-on-year organic growth2 for the trailing twelve months ended 30 June 2023 is expected to be c.31%.
Cash was USD 83 million at 30 June 2023 (USD 95 million at 31 December 2022) and Net Debt3 was USD 68 million at 30 June 2023 (USD 57 million at 31 December 2022), following non-operating cash outflows in respect of the Company acquiring its own shares (USD 13.7 million), the Company’s maiden dividend (USD 3.5 million), and USD 15.2 million in respect of the non-recurring settlement of deferred contingent consideration. Adjusted Cash Conversion was 89% and is expected to normalise to nearer to 100% over the remainder of the year.
The material expansion of the Company’s second share buyback programme announced on 3 July 2023 is being funded by continued strong operating cash generation. To date, the Company has bought back 5.7 million shares under that programme at a cumulative cost of GBP 6.7 million, in addition to purchases of shares by the Company’s Employee Benefit Trust. In excess of GBP 27 million remains available for the remainder of the programme.
Considering the robust performance, the Directors remain confident that the Group continues to trade at least in line with current market expectations for the full year.
Notice of Results
The Group will publish its unaudited Interim report for the six months ending 30 June 2023 on Monday, 14 August 2023.
On the day of the six months ended 30 June interim results (14 August 2023), there will be a webinar / conference call for equity analysts at 9.30am, UK time, and for private client investment managers at 11am, UK time. Both events will be hosted by CEO Michael Riedl and CFO William Green. To register for either event please contact SEC Newgate at centralnic@secnewgate.co.uk, where further details will be provided.
Michael Riedl, CEO of CentralNic, said:
“CentralNic has continued to deliver yet another strong quarterly performance. Furthermore, we have enhanced our market share in each of the segments in which we operate. Our sustained performance is a testament to our strong ingrained culture of operational excellence, a factor that keeps us at the fulcrum of the industry ecosystems in which we operate.
Through our ongoing initiatives to boost operating leverage, we are fortifying an already highly dependable and sustainable business model. Our unrelenting commitment to these efforts continues to build upon our prime objectives of creating a market leader in its space and maximising shareholder value.”
Notes
1 Parent, subsidiary and associate earnings before interest, tax, depreciation, amortisation, impairment, non-cash charges and non-core operating expenses. Non-core operating expenses include items related primarily to acquisition, integration and other related costs, which are not incurred as part of the underlying trading performance of the Group, and which are therefore adjusted for, in line with Group policy.
2 Organic growth is calculated based on trailing twelve-month pro-forma revenue adjusted for acquired revenue, constant currency FX impact and non-recurring and non-cash items (c.USD 794 million and c.USD 606 million for the trailing twelve months ended 30 June 2023 and 30 June 2022 respectively)
3 Includes gross cash, interest-bearing debt, prepaid finance costs and hedging assets/liabilities relating to borrowings.
