DGAP-News: CLIQ Digital AG

Corporate News

CLIQ Digital AG publishes audited consolidated financial statements for 2017 - ambitious double-digit increase in earnings for 2018

- Audited group figures for 2017 are in line with preliminary figures as of February 15, 2018
- Net profit (before non-controlling interests) rises by 23% to EUR 3.4 million (2016: EUR 2.7 million)
- Customer base value grows by 24% to EUR 26 million (2016: EUR 21 million)
- Outlook 2018: ambitious double-digit increase in earnings and (slightly) higher revenues over the previous year

Dusseldorf, April 9, 2018 - CLIQ Digital AG (ISIN DE000A0HHJR3, WKN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, today publishes its audited consolidated financial statements for fiscal 2017 and its outlook for 2018.

Revenue and earnings development (in EUR million)

CLIQ Digital AG continued its international growth in the year under review. With a local presence in one of its main markets (UK), the group succeeded in significantly boosting its sales power. Revenue increased by 8% to EUR 70.5 million (2016: EUR 65.3 million) due to a higher CLIQ factor of 1.47 (2016: 1.41). The higher CLIQ factor compensated lower marketing spend, which amounted to EUR 18.6 million in the year under review (2016: EUR 21.6 million).

In the year under review, CLIQ Digital focused on increasing the quality of traffic with a higher CLIQ factor and reduced the number of media partners. This resulted in an 8% revenue increase (instead of a double-digit growth in revenue as originally envisaged) and led to a very pleasing development in earnings. As expected, CLIQ Digital achieved double-digit growth rates in EBIT, which rose strongly by 15% from EUR 4.5 million to EUR 5.2 million in the year under review. As a result, the EBIT margin (EBIT/Gross Revenue) improved from 6.9% in the previous year to 7.3%. Net profit before non-controlling interests rose significantly to EUR 3.4 million after EUR 2.7 million in the previous year (+23%). Cumulative earnings per share (EPS diluted) improved from EUR 0.43 in the previous year to EUR 0.53 in 2017.

Development of KPI's in 2017

The profitability of CLIQ Digital improved significantly in the year under review due to higher-margin marketing campaigns and a higher ARPU (average revenue per user) in Europe. In 2017, the European market accounted for 76% of total revenues (2016: 82%). Thanks to the concentration on high-margin markets, the ARPU rose by 12% to EUR 13.16 (2016: EUR 11.73). The company recorded an 8% increase in costs per customer acquisition (CPA). As a result, the ratio of ARPU to CPA (CLIQ factor) increased from EUR 1.41 in 2016 to EUR 1.47 in 2017, clearly underlining the increased customer profitability. The customer base value - an important indicator for estimating the expected net revenue of existing customers - rose by 24% to EUR 26 million in 2017 compared to EUR 21 million in the previous year.

Balance sheet 2017

CLIQ Digital generated a cash flow from its operating business of EUR 5.1 million (2016: EUR 0.5 million). The successful business performance in the financial year 2017 also enabled CLIQ Digital AG to further reduce its liabilities with its financial institution, which were EUR 5.7 million as of December 31, 2017, around 46% below the previous year's figure of EUR 10.6 million as of December 31, 2016. Payments on corporate income tax of approximately EUR 2 million during the first half year of 2018 have to be considered. Consolidated equity amounted to EUR 46.5 million as of the 2017 balance sheet date, compared to EUR 43.4 million in the previous year. CLIQ Digital thus has a solid financial foundation to keep on pursuing its ambitious expansion targets in the future.

Outlook 2018

After a successful year in 2017 and a challenging start to the current fiscal year (due to lower marketing expenses during the last quarter of 2017), the CLIQ Digital Group is aiming for an ambitious double-digit increase in earnings in 2018. We expect the first quarter results to be lower compared to what we achieved in the previous year, this is due to delays in our product and market offerings. This was resolved by the end of the 1^st quarter. The first quarter marketing spend of 2018 increased compared to the last quarter of 2017. The expected increase in marketing spend for 2018 will again lead to higher revenues, compared to the previous year.

The audited Annual Report 2017 is now available for download at www.cliqdigital.com in the Investor Relations section.
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
Freihamer Strasse 2
D-82166 Graefelfing/Munich
Germany
Tel.: +49 (0)89 89 82 72 27
Fax: +49 (0)89 89 52 06 22
E-Mail: sh@crossalliance.de