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Wow Results! Topped up, can hardly see where this can go wrong.. Potential to rise 50% or more this year, IMHO.
nearly there but i am happy with that
CentralNic proposed a maiden dividend of 1.0p per share for 2022, after significant increases in revenue and profit. The internet services holding company said revenue was up 77% to USD728.2 million from USD410.5 million in 2021, as pretax multiplied to USD14.8 million from USD1.6 million. "Whilst early into the new financial year, we anticipate 2023 will see yet another year of robust growth and shareholder returns," said Chief Executive Michael Riedl.
looking for a 10% rise here today
CentralNic proposed a maiden dividend of 1.0p per share for 2022, after significant increases in revenue and profit. The internet services holding company said revenue was up 77% to USD728.2 million from USD410.5 million in 2021, as pretax multiplied to USD14.8 million from USD1.6 million. "Whilst early into the new financial year, we anticipate 2023 will see yet another year of robust growth and shareholder returns," said Chief Executive Michael Riedl.
Agreed, great set of results, 1p, yes they have to start somewhere, but personally, may have been better to hold off another year but the statement “Proposed final dividend of 1.0p. This reflects a greater emphasis on returns to shareholders in future”, makes it clear future profits will have a clear redistribution policy.
A VERY interesting comment from Zeus Capital in thheir update today:
"The company expects to surpass 2023 expectations".
They've "conservatively" left their forecasts unchanged for the moment, but this comment is revealing from the house broker since it's not explicitly stated in the results AFACS.
Wonderful results. Share price should rocket but this is Cnic. Probably will end the day down.
Lovely - a surprise maiden 1p dividend :o))
The results are miles ahead of Edison's upgraded forecasts and even slightly ahead of Zeus's more recently upgraded forecasts in terms of EBITDA and EPS.
Adjusted 20.01c EPS puts CNIC on a historic P/E of just 8.4.
Most importantly, the outlook statement is as positive as ever - "we are confident of another successful year".
Net cash flows from operating activities are a whopping $77.5m, and EBITDA margins have increased beautifully to 48% from 39%.
Some might not like the familiar adjustments from the headline numbers, but imo it's the cash flows and the performance of the core business which is all-important, and these are outstanding, together with the huge recurring income.
Daily Mail Midas share tip today
ggrantsu you are spot on. I have been involved with this stock for a number of years, but never on a large holding.I started to take real notice 18months ago. I told the brokers that I wanted to see real organic growth for 3 quarters before I would run a decent position. I have been buying heavily into the recent fall doubling my position in the last few days.
There is no doubt that many Institutions havent held it because they dont understand it.Others buy it and flip because they knew that another acquisition was just around the corner and able to renter. Ben was unpopular with several big investors and had to make way. A new approach with shareholder distribution has woken up some faces.
I have worked in this business for over 40 years In my experience if Mondays figs continue to show the growth in earnings the we have seen for the last 18 months, then CNIC will either rerate or will be taken private by PE.
It certainly feels that way. For those who are really into this stock and who like detail...I have done a further deep dive into the online marketing segment recently and the Group's acquisition record. Can post on here if people would like. The acquisition record is flawless...they paid 4x EBITDA for team internet and gave grown that business at over 50% CAGR since. The OM opportunity is huge...and really interesting to look at CNIC's performance vs. their only other direct competitors (Perion Network and System1)...both of them suffered last year while PubTONIC just went through the roof. Honestly if you want my opinion...I don't think a lot of investors really understand CNIC...and not just ones who are not invested. Go and read Herald's annual report or Slater investments...they just view CNIC as a domain name business and other internet services...effectively missing out the multi-billion dollar potential OM side which I think unless you really go and deep dive into, it's hard to know what CNIC are doing. I know quite a few institutional investors and a lot of them will not really go that deep...especially like a Herald or Slater who bought CNIC long before they transformed themselves into this much bigger beast. Even before I'd deep dived...I kind of just said in my head 'they are monetising websites with traffic without use of cookies'...but the OM side much more than that - you have the domain name monetisation which they are world market leader in, PubTONIC (the online marketing without use of third party cookies) and then other add on businesses like Codewise. Even just a cursory glance at VGL and just how big that business is in terms of scale...has like 4x the annual visitors vs. moneysupermarket. It really is insane that they paid 6x earnings for that business when you think they are able to channel those 300mm annual visitors through the CNIC OM segment...its crazy...and it is being completely missed by the market.
There is big big potential here...almost difficult to get ones head around the kind of potential on offer at these levels. I genuinely think that this is one of those stocks that could be wealth transforming...as long as its not bought out on cheap. I think unlikely given Royde though...hopefully he sees the value in this thing...
The concern is the lack of enthusiasm from the market currently. It’s not just the growth last year which is mouth watering but the as yet untapped potential. We keep delving into the what am I missing or overlooking. Paul Scott, stockopedia, doesn’t like the balance sheet. He doesn’t explain why. Every criticism about debt and paying too much for acquisitions has proven groundless. This must surely be of the fastest accelerating growth, cash generative company in the world. The sp is bonkers, probably more bonkers than any other company in the world
2. Who else is invested in CNIC?
I’m also reassured that a significant shareholding (around 23%) in CNIC is held by Kestrel. Check them out at. https://kestrelpartners.com/
Their founding partner Max Royde is now a non exec at CNIC and continues to buy stock. These folks know the market very well and have made a very substantial bet on CNIC. I would not be surprised if they are the ones steering CNIC towards an eventual exit strategy for the business.
So this is a strong business with smart money behind it. And a sizeable chunk of my pension too. I’m happy to hold and to have added to my stake during this dip. Best of luck to all holders.
1. I’ve spent 40 years in the tech business ( now retired comfortably). I like to think that I can spot an overlooked but well managed tech company with a strong cash position, great growth prospects and a large market opportunity.
If you care to visit CNIC’s investor page, there’s a handy summary of the investment case:
https://investor.centralnicgroup.com/investors/investment-case/
CentralNic’s Markets
Market: Online Presence services such as domain names and email, and Online Marketing services such as customer acquisition and traffic monetization.
Massive Total Addressable Market: $60 bn for Online Presence and $600bn for Online Marketing.
Quality earnings: Subscription recurring revenues in Online Presence and revenue share on rolling utility-style contracts in Online Marketing.
Growth Market: Online Marketing market growth at 20+% even during economic downturns.
CentralNic Competitive Position
Continued positive trading momentum, with record revenue and EBITDA for 2022
Organic growth superstar: 62% organic growth in 12 months to June 30, 2022
Highly profitable: $38.6M of adjusted EBITDA in H1 2022
Strong cash conversion – 110% in H1 2022
De-levered: Net debt < 1X consensus EBITDA
Proven business model – revenue multiplied 200-fold since 2013 IPO
Scalable Technology – provide sustainable competitive advantage
Global consolidator – global business with successful acquisition strategy in highly fragmented market
Experienced and entrepreneurial management team
Privacy-safe – proprietary AI and big data solutions a superior alternative to cookies
Repression I hope you haven’t sold as I think you will regret it. I don’t tend to “shout down” contrary views as it’s healthy I think to have a balance of opinions on this BB and right of you to raise a flag over the recent share trades in CNIC. I don’t know what’s behind these, but I suspect that this may be an Institutional investor adjusting their position, and / or market makers looking to pick up stock prior to the results announcement next week.
I have been greedy when others are fearful and now have a substantial position in CNIC. Here are a couple of reasons why I’m comfortable with this…….
Hopefully yesterday's rise will continue today before next Monday's (yet again) ahead of expectations results.
As a reminder:
"Trading Update
The Company now expects to report record gross revenue of c.USD 728 million, and net revenue and Adjusted EBITDA(1) of at least USD 177 million and USD 85 million respectively for the financial year 2022. These represent increases of c.77%, c.33% and c.84% respectively versus the prior year, ahead of the recently upgraded market consensus(2) for 2022."
"CEO, Michael Riedl, stated, "CentralNic ended the year 2022 on a high note, with record revenue and profit in a challenging economic environment. This is a testament to the outstanding business portfolio we have built as a team. We will continue to exhibit discipline and efficiency as we accelerate product rollouts, launch strategic partnerships, and enhance scalability in the year ahead. As a result, we anticipate another year of robust growth and shareholder returns. I look forward to updating on our continued progress throughout 2023."
That has to be a false finish, after the bell.
Hello GG think you misread:
RE: Unknown* Trades QueryWed 13:56
I don't see that, I just see a seller or sellers overwhelming buyers - constantly. Whatever happens I will be out before Monday. It's not what you want to see leading up to results.
I'm still here, but will probably sell tomorrrow as I said, as I don't like holding through results unless I have a cushion - which I haven't at the moment. Good luck all.
Shame it got knocked back at the close at the 20 day ema
Absolutely chuckling about this guy Repression who apparently sold out yesterday because of a 0.2% drop which he saw as 'extremely concerning' pre results...was going to message back yesterday saying good luck investing like that and making money over the long term but thought better of it.
Anyway...what a strange way to look at things...so did you sell out in the end of stay with us? You said you had sold...
Have you sold yet. You said you'd be out before Monday.
Let's hope the seller or sellers have finally cleared
Well this is more like it. Big volume and fairly sizeable trades too. Long may it continue!
Haha love it…..