CentralNic Group plc (LON:CNIC), the global internet platform which helps online consumers make informed choices, has provided an update for the three months ending 31 March 2023.
Trading update
The Group expects to report gross revenue of approximately USD 194.9 million, net revenue / gross profit of approximately USD 45.8 million and Adjusted EBITDA1 of approximately USD 21.3 million for the three months ending 31 March 2023, an increase of 24%, 15% and 15% respectively compared to the three months ending 31 March 2022. Year-on-year organic growth2 for the trailing twelve months ending 31 March 2023 is estimated at approximately 45%.
Cash increased to USD 102.9 million at 31 March 2023 from USD 95.0 million as at 31 December 2022, reducing Net Debt3 to USD 49.2 million at 31 March 2023 (USD 56.6 million at 31 December 2022), including the impact of the Company returning USD 4.3 million to shareholders via the share buyback scheme announced on 30 December 2022.
Due to an expanding product range, the benefits of operating leverage, and a focus on efficient execution, the Directors remain confident that the Group will continue to trade at least in line with current market expectations.
Microsoft contract
The Group’s Online Marketing segment continues to thrive through our earnings-accretive partnerships with leading global media groups, including our latest agreement with Microsoft Bing, which will diversify and deepen our advertiser demand pool and provide opportunities to acquire customers from a broader set of media. Teaming up with Microsoft Bing and leveraging our existing Artificial Intelligence capabilities with ChatGPT, complements our existing relationships with Google and Yahoo, and we are excited for the potential revenue growth opportunities that this strategic partnership could bring.
Notice of Results
The Group will publish its unaudited interim report for the three months ending 31 March 2023 on Monday, 15 May 2023.
Michael Riedl, CEO of CentralNic, said:
“As CEO, I am thrilled to announce that CentralNic has had an outstanding start to the year, achieving our best-ever first quarter. Our continued industry leadership and reputation for excellence have enabled us to secure key partnerships with some of the world’s leading technology companies, including Microsoft.
Today, we are excited to invite our shareholders to vote on our inaugural dividend at the annual general meeting. This is a significant milestone in our commitment to enhance shareholder value through a progressive dividend policy and continued share buybacks. We remain focused on delivering sustainable growth and driving long-term value for our investors.”
1 Parent, subsidiary and associate earnings before interest, tax, depreciation, amortisation, 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 (approximately USD 771 million and approximately USD 529 million for the trailing twelve months ending 31 March 2023 and 31 March 2022 respectively).
3 Includes gross cash, interest-bearing debt and prepaid finance costs.
