CentralNic Q1 trading update, Microsoft Bing contract, board changes

CentralNic Group provided an update for the three months ending 31 March 2023.

Trading update

The Group expects to report gross revenue of approximately USD 194.9 million, net revenue / gross profit of approximately USD 45.8 million and Adjusted EBITDA of approximately USD 21.3 million for the three months ending 31 March 2023, an increase of 24%, 15% and 15% respectively compared to the three months ending 31 March 2022. Year-on-year organic growth for the trailing twelve months ending 31 March 2023 is estimated at approximately 45%.

Cash increased to USD 102.9 million at 31 March 2023 from USD 95.0 million as at 31 December 2022, reducing Net Debt³ to USD 49.2 million at 31 March 2023 (USD 56.6 million at 31 December 2022), including the impact of the Company returning USD 4.3 million to shareholders via the share buyback scheme announced on 30 December 2022.

Due to an expanding product range, the benefits of operating leverage, and a focus on efficient execution, the Directors remain confident that the Group will continue to trade at least in line with current market expectations.

Microsoft contract

 The Group’s Online Marketing segment continues to thrive through our earnings-accretive partnerships with leading global media groups, including our latest agreement with Microsoft Bing, which will diversify and deepen our advertiser demand pool and provide opportunities to acquire customers from a broader set of media. Teaming up with Microsoft Bing and leveraging our existing Artificial Intelligence capabilities with ChatGPT, complements our existing relationships with Google and Yahoo, and we are excited for the potential revenue growth opportunities that this strategic partnership could bring.

Notice of Results

The Group will publish its unaudited interim report for the three months ending 31 March 2023 on Monday, 15 May 2023.

 Michael Riedl, CEO of CentralNic, said:

 “As CEO, I am thrilled to announce that CentralNic has had an outstanding start to the year, achieving our best-ever first quarter. Our continued industry leadership and reputation for excellence have enabled us to secure key partnerships with some of the world’s leading technology companies, including Microsoft.

 Today, we are excited to invite our shareholders to vote on our inaugural dividend at the annual general meeting. This is a significant milestone in our commitment to enhance shareholder value through a progressive dividend policy and continued share buybacks. We remain focused on delivering sustainable growth and driving long-term value for our investors.“

Board Changes

CentralNic Group plc (AIM: CNIC) announced the appointment to its board of Marie Holive as an Independent Non-Executive Director effective immediately following today’s Annual General Meeting (“AGM”). Marie will be Chair of the audit committee and a member of the remuneration committee.

“Marie has significant experience in global media markets as both an executive and non-executive director. Marie is currently a NED and Chair of the Audit Committee for Nexters Inc, a NASDAQ listed game development company, and a senior advisor for Proteus International LLC, a coaching, consulting, and training firm focused on supporting Boards and executive leaders. Prior to her current roles, Marie spent nine years at NBC Universal, the first seven as Chief Financial Officer and the final two as Managing Director for NBC Universal International Networks, where she was responsible for c.$700 million of revenues and 750 employees. Prior to working at NBC Universal, Marie was a senior audit manager at General Electric. As well as MBAs from London Business School and Columbia Business School, Marie, an engineer by background, has completed the Financial Times Non-Executive Director Diploma and the ‘Women on Boards: Succeeding as a Corporate Director’ Harvard Business School Executive Education programme.”

“In addition, Thomas Rickert has notified the Company that he does not intend to stand for re-election as a Director of the Company at AGM. Thomas has been a Non-Executive Director of CentralNic since its IPO in 2013. As a Non-Executive Director and Audit Committee Chair, Thomas has supported the Group through a sustained period of record growth. The Board would like to thank Thomas for his support and wish him every success prospectively. The resolution regarding Thomas’s re-election set out in the Company’s Notice of AGM published on 27 March 2023 will not be proposed at the AGM. The withdrawal of Resolution 4 does not otherwise affect the validity of the Notice of Annual General Meeting, the proxy form or any proxy votes already submitted on other resolutions. The numbering of all other proposed resolutions at the Annual General Meeting will remain unchanged.”

Michael Riedl, CEO of CentralNic commented: “I am delighted to announce that Marie Holive joins our board. It is a testament to CentralNic’s ability to attract top talent. Her extensive experience in global media markets and executive leadership will be a valuable asset to our company as we continue to grow and innovate.“

Iain McDonald, Chairman of CentralNic said: “Thomas’s tenure on our board has been invaluable. His expertise and guidance as our Non-Executive Director and Audit Committee Chair have helped steer us through a period of remarkable growth. We wish him all the best for his future endeavors and are grateful for his contributions to CentralNic.”