CentralNic Group - Another quarter of record growth

CentralNic continues to benefit from advertisers looking for privacy-safe marketing solutions, with 66% organic revenue growth for the last 12 months (LTM) to Q322 (LTM to Q222: 62%). Management anticipates 9M22 gross revenue of at least US$525m, net revenue of US$127m (a 24.2% margin) and adjusted EBITDA of at least US$61m (an 11.6% margin). Management expects CentralNic to materially exceed current market expectations for FY22, ahead of Q4, which is typically the strongest advertising quarter. We have therefore revised our FY22 revenue estimate upwards by 9% to US$702m, with adjusted EBITDA of US$81m, an 11.5% margin. Despite CentralNic’s continuing momentum, the group trades on FY22e multiples of 5.9x EV/EBITDA and 7.7x P/E.