EQS-News

CLIQ Digital Reports First Quarter 2024 Results

EQS-News: Cliq Digital AG / Key word(s): Quarter Results CLIQ Digital Reports First Quarter 2024 Results 08.05.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. CLIQ Digital Reports First Quarter 2024 Results

• Significant 1Q 2024 performance decline attributed to more difficult market conditions
• Sales decrease q/q by 13% to €73m and normalised EBITDA down 55% to €5m
• Group-wide transformation programme launched with focus on further diversification of sales channels
• Revised FY 2024 outlook: Sales between €300m-€330m, EBITDA between €26m-€30m and total customer acquisition costs between €120-€140 million

DÜSSELDORF, 8 May 2024 - CLIQ Digital AG today publishes its first quarter 2024 unaudited financial report.

Performance

in millions of €	1Q 2024	4Q 2023	Δ
Bundled-content	70	80	-12%
Single-content	3	4	-30%
North America	48	54	-10%
Europe	18	25	-30%
Latin America	4	3	8%
ROW	3	2	103%
Sales	73	84	-13%
Customer acquisition costs for the period	-31	-34	-9%
EBITDA (normalised)	5	12	-55%
EBITDA margin[1]	7%	14%
Profit for the period1	3	7	-63%
EPS (in €)1	0.40	1.07	-62%

• Sales: In 1Q 2024, Group sales decreased by 13% quarter-on-quarter to €73 million (4Q 2023: €84 million) mainly due to a higher-than-expected churn rate of members. The higher churn was because of a more widespread refund programme of the credit card companies, which resulted in a lower-than-expected lifetime value. Accordingly, European and North American sales in 1Q 2024 declined quarter-on-quarter. However, sales growth in Asia was very strong following the market entry at the end of last year.
• Customer acquisition costs for the period: In 1Q 2024, the customer acquisition costs for the period amounted to €31 million (4Q 2023: €34 million), which as a percentage of revenue was 43% (4Q 2023: 41%). The higher customer acquisition costs for the period in per cent of revenue reflected tougher market conditions, which led to a higher churn rate than anticipated that resulted in higher reported amortisation of contract costs in the period.
• EBITDA: EBITDA before special items in 1Q 2024 decreased by 55% quarter-on-quarter to €5 million (4Q 2023: €12 million) with a normalised EBITDA margin of 7% (4Q 2023: 14%) mainly due to the sales decline. Reported EBITDA was €2 million. The special items related to the Group’s transformation programme, including the closure of the U.K. office and the hiring of additional contract workers for technology integration and optimisation as well as for a Group tax optimisation programme.
• Earnings per share: For 1Q 2024, basic EPS before special items decreased by 62% to €0.40 (4Q 2023: €1.07) on the back of a normalised profit for the period of €3 million (4Q 2023: €7 million). Reported basic EPS was €0.02.
• Cash flow & liquidity: Operating free cash flow in 1Q 2024 was -€4 million (4Q 2023: €4 million). Cash flow from financing activities included €1 million for the repurchase of c.65 thousand shares from the Group’s share buyback programme. As at 31 March 2024, the net cash position of the Group totalled €10 million (31/12/2023: €16 million).

Operational indicators