November 2019

CLIQ Digital AG publishes nine-month figures – Successful direct media buy strategy sets CLIQ Digital back on growth path

  • 14/11/2019

– Gross revenue increased by 18% to EUR 16.8 million in Q3 2019 (Q3 2018: EUR 14.1 million)

– Net revenue increased by 27% to EUR 11.9 million (Q3 2018: EUR 9.4 million)

– Marketing spend in Q3 2019 37% higher compared to Q2 2019 and 59% above Q3 2018

– EBITDA increased significantly by 128% in Q3 2019 to EUR 1.9 million (Q3 2018: EUR 0.8 million)

– EBITDA, adjusted for one-off costs, for the first nine months 2019 already 13% above the EBITDA of the full year 2018

– CLIQ factor of 1.53 for Q3 2019 (Q3 2018: 1.32) shows expected return to growth

 

Dusseldorf, November 14, 2019 – CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, today announced its figures for the first nine months and the third quarter of 2019.

Revenue and earnings development

In the period January to September 2019, the CLIQ Digital Group improved its performance compared to the same period last year:

Amounts in EUR million

 

Jan-Sep 2018

Jan-Sep 2019

change

Gross Revenue

 

44.7

45.0

1%

Net Revenue

 

29.9

31.6

6%

Marketing Spend

 

14.1

16.4

17%

EBITDA

 

3.0*

4.3*

44%

 

 

 

 

 

Customer Base Value (in EUR million)

 

22.0

25.5

16%

CLIQ Factor

 

1.38

1.45

 

 

 

 

 

 

* adjusted for one-off costs

 

 

 

 

 

CLIQ Digital reported an increase of 44% in EBITDA, adjusted for one-off costs, compared to the prior year with a stable gross revenue level (1% increase). Net revenue – after deduction of payment service provider costs – went up by 6% for the nine-months-period (9M 2019: EUR 31.6 million; 9M 2018: EUR 29.9 million). Reported EBITDA for the first nine months amounted to EUR 3.7 million (9M 2018: EUR 2.9 million). EBITDA, adjusted for one off costs, amounted to EUR 4.3 million and already exceeded EBITDA for FY 2018 (EUR 3.9 million). The shift from affiliate marketing to direct media buy, which started in 2018, resulted in higher marketing spend, combined with increased profitability (CLIQ Factor). The new strategy proofed to be successful and set the CLIQ Digital Group back on the growth path.

The successful strategy is also visible in the quarter over quarter results:

Amounts in EUR million

Q4 2018

 

Q1 2019

Q2 2019

 

Q3 2019

 

change

Q2 vs Q3

Gross Revenue

13.5

 

13.8

14.5

 

16.8

 

16%

Net Revenue

9.2

 

9.6

10.1

 

11.9

 

19%

Marketing Spend

4.7

 

5.1

4.8

 

6.5

 

37%

EBITDA

1.0

 

1.1*

1.4

 

1.9

 

39%

 

 

 

 

 

 

 

 

 

Customer Base Value (in EUR million)

24.0

 

24.0

24.5

 

25.5

 

4%

CLIQ Factor

1.33

 

1.34

1.46

 

1.53

   

 

 

 

 

 

 

 

 

 

* adjusted for one-off costs

 

 

 

 

 

 

 

 

 

Gross revenue increased in the third quarter by 16% to EUR 16.8 million from EUR 14.5 million in the second quarter. Compared to the third quarter of 2018 (EUR 14.1 million), the growth is 18%. The increase in gross and net revenue was driven by the rise in marketing spend from EUR 4.8 million in the second quarter to EUR 6.5 million in Q3 2019, combined with an improved CLIQ factor of 1.46 in Q2 2019 versus 1.53 in Q3 2019.

The CLIQ Digital Group increased its total marketing spend for the third quarter by 59% to EUR 6.5 million compared to EUR 4.1 million in the prior-year period. Marketing spend in the third quarter also increased significantly by 37% compared to EUR 4.8 million in the previous quarter of 2019. The increase in marketing spend is mainly attributable to the successful direct media buy strategy.

EBITDA for the third quarter of 2019 came in at EUR 1.9 million. This represents an increase of 39% compared to the EBITDA for the second quarter of 2019 (EUR 1.4 million) and 128% compared to the third quarter of 2018 (EUR 0.8 million). The EBITDA is also positively influenced by the result of the restructuring during the first quarter of 2019.

Development of KPIs

All key performance indicators show a clear improvement compared to previous periods. The CLIQ factor represents the ratio of revenue to costs per customer and is a key indicator for measuring the profitability of new customers. The CLIQ factor increased above expectations to 1.53 in Q3 2019, compared with 1.46 in the previous quarter. The increase compared to the CLIQ factor of 2018 (1.32) shows the successful integration of the direct media buy strategy by the CLIQ Digital group.

In the first nine months of 2019, the average CLIQ factor increased to 1.45, compared with 1.38 in the prior-year period.

The customer base value, an important indicator for estimating the expected cash inflow based on existing customers, came in at EUR 25.5 million at the end of the third quarter of 2019 compared to EUR 24.5 million at the end of the second quarter of 2019 and also up on the prior-year quarter (Q3 2018: EUR 22.0 million).

The nine-month figures for 2019 are unaudited and were not subject to review.

About CLIQ Digital:

CLIQ Digital (www.cliqdigital.com) is a leading direct marketing and sales organization for digital products with its own global payment and distribution platform. The core business of the Group is the direct marketing of its digital entertainment products to consumers via mobile and online marketing channels. CLIQ Digital is a valuable strategic business partner for networks, content owners, publishers and brands. The Group, based in Dusseldorf, employs +100 staff. The shares of CLIQ Digital AG are listed in the Scale 30 segment at the Frankfurt Stock Exchange (ISIN DE000A0HHJR3).

Contact:

CROSS ALLIANCE communication GmbH Susan Hoffmeister
Bahnhofstr. 98
D-82166 Graefelfing/Munich
Germany
Tel.: +49 (0) 089 125 09 03-33
E-Mail: sh@crossalliance.de

© 2019 CLIQ Digital. All rights reserved.