CentralNic Group - Trading ‘comfortably’ on track for FY22

Powered by its privacy-safe approach to online marketing, CentralNic continues to deliver an attractive mix of growth, recurring revenues and strong cash conversion in an uncertain economic climate. CentralNic’s Q122 figures were marginally ahead of the April trading update, with gross revenues of US$157m (an 86% rise y-o-y) and net revenues increasing to US$40m (up 43% y-o-y), a 25.5% margin. Adjusted EBITDA increased by 83% to US$19m, a 46% net revenue margin (Q121: 36%, FY21: 39%) demonstrating CentralNic’s growing operating leverage. We expect to see a bond refinancing over the summer, which should deliver a meaningful reduction in interest payments. Otherwise, CentralNic trades on an undemanding rating of 7.7x FY22 EV/adjusted EBITDA and 10.3x FY22 P/E, with management confident of the full-year outlook. Despite three acquisitions in Q122, the group retains plenty of headroom for more M&A.