CentralNic Group - Focusing on shareholder returns

CentralNic’s H123 trading update shows that revenue, EBITDA and margins have continued to grow in the year, giving us confidence in our forecasts, which we leave unchanged. On 3 July, management announced that it was increasing its FY23 share buyback programme up to £34m, a £30m uplift from when it was first announced in May, highlighting management’s commitment to maximising shareholder returns. With its FY22 dividend now paid and the company focusing more on organic growth, management remains aligned to its waterfall model for free cash flow allocation, which we analysed in our Q123 update.