Cliq Digital (CLIQ) H1 2024 earnings summary

Executive summary

• Q2 2024 sales declined 7% quarter-over-quarter to €68.2m, with EBITDA before special items up 4% to €6m, as the company shifted focus to profitability and cost controls amid higher churn and operational challenges in new sales channels.

• 2024 is a transition year, with the "Fit for the Future" transformation program driving cost efficiencies, productivity gains, and organizational streamlining, including office closures and reduced administrative costs.

• The company is prioritizing profitability over sales growth, implementing cost-saving measures, and executing a share buyback program, with 5% of share capital repurchased by June 2024.

Financial highlights

• Q2 2024 sales declined 7% quarter-over-quarter to €68.2m; EBITDA before special items rose 4% to €6m; EPS before special items increased 13% to €0.45.

• Net cash position at quarter-end was €7.2m after share buybacks and dividend payments.

• Operating free cash flow improved but remained negative at -€0.2m in Q2 and -€3.9m for 6M 2024.

• Half-year EBITDA after special items was €4.8m; profit for the period was €961K; reported EPS €0.15.

• Customer acquisition costs for Q2 were €27.7m (41% of sales), down 12% sequentially.

Outlook and guidance

• 2024 group sales expected between €260m and €280m; EBITDA between €10m and €20m after customer acquisition costs of €80m–€100m.

• 2025 sales estimated at €325m; midterm target is a €400m annual run rate by Q4 2026.

• 2024 EBITDA margin expected between 4% and 8%, with a goal to exceed 8% in future years.