Centralnic Share Discussion Threads

[jeanesy] 26/2/2023 11:34

That might explain why these have risen over the last couple of trading days. The MOS has a large following. Could be interesting monday.

[doobz] 26/2/2023 11:15

Good results expected and tipped over weekend, this could easily fly tomorrow.

[niklol] 25/2/2023 23:32

Indeed
Nice write up

[1watty] 25/2/2023 22:43

Monday morning should be interesting for CNIC because, in addition to the Results being announced, Midas of the Mail on Sunday, has tipped them in this weekend's edition.

[azaman] 25/2/2023 12:28

Earwacks, thank you very much for the good explanation.
So, dividends in the company's register will be qualified for dividends and this will be declared as profit. Is this correct then?

[earwacks] 25/2/2023 07:05

Adamant. It’s a bit of a double edged sword. Generally young companies in their early growth years concentrate on using any profits to build the company to multiply earnings. Once a more established footing has been reached they may consider returning profits to shareholders with as a one off dividend or a smaller regular payment. Cnic currently have told us they current have about 1 percent of market share in their sector. So their is still lots to play for. They have stated that acquisitions although not out of the question are unlikely to happen at the rate they have been buying in previous years. Another method of enhancing shareholder value is to buy shares in their own company as they have been doing recently. This obviously spiked the share price considerably at the beginning of this year but also enabled many investors to take advantage of selling into the strengthening share price. Dividend payments are money that disappears from the company where as buybacks keep the value in the company. The big question is how sustainable the current rate of growth is. Should they continue to expand or sit back and reap the benefits of what has been achieved so far, or can they manage both. Some tech companies are finding that after paying dividends for a while they actually need that surplus money to get them through these difficult time and can see great opportunities ahead. It’s not an easy call. Cnic are doing phenomenally well. I’m sure they will have an eye on paying a dividend but also won’t wNt to miss an opportunity to bolt on another earning enhancing acquisition that could propel us further into the big league and eventually a multi bagging market cap. I am happy to view this this in the same way as a scrip dividend which is payment in shares. If they can grow at the rate that’s for a few more yeArs, I would prefer that to some paltry dividend just for the sake of it.

[azaman] 24/2/2023 20:54

I have a question on dividends. When a company has shares in its registry, do these shares earn dividends? And what happens to this dividend?

[jeanesy] 24/2/2023 16:39

Nice to see a couple of blue days. Lets hope monday doesn't disappoint.

[doobz] 24/2/2023 11:27

All looking much more likely for Monday now

[yf23_1] 24/2/2023 07:57

"they're strategies"
ROFLMAO

[rivaldo] 23/2/2023 22:41

Hopefully today's rise was just the start of a rally 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."

[johndoe23] 23/2/2023 18:16

I agree, another buyback and/or divi will take this higher.

[deanowls] 23/2/2023 11:50

I do wish he would get out of his nans back bedroom and look like he leads a multi million company.

[doobz] 23/2/2023 10:25

Don't usually expect much share price reaction on CNIC news however we are now 20% discounted off of the highs and I can only imagine good news on Monday. More buyback, potential divi mention could be a good day for holders. GLA

[adamb1978] 22/2/2023 09:50

Let's see what gets announced on Monday. I'm assuming there will be more about a buyback which should further help sentiment and having the actual figures for the year confirmed also helps with when newsletters, PIs run things like screens as it'll show a historical PE of something like 8x rather than say 14x based on 2021 figures

[pyemckay] 22/2/2023 09:27

The buy back was a sticking plaster. Normal service resumed.

Has much has the buyback increased the EPS ?

[johndoe23] 22/2/2023 08:26

Yep, constant big sellers on order book. This market is so frustrating, dreadful

[jeanesy] 22/2/2023 08:22

Looks like this falling back down to the 120 level . Constant selling still !!

[adamb1978] 20/2/2023 09:28

Thanks Rivaldo. Even despite the price action over the last few weeks, it seems to be holding jsut above the 200 DMA which is around the 130p mark. Results are next Monday so, given those should be positive, hopefully they'll put a floor under the price

[rivaldo] 20/2/2023 07:23

Since the Februaty issue of SCSW is out, it should be OK to publish this from last month's issue FYI:

"* CNIC
* Price: 155p

Having been a longstanding constituent of GP3 (since December ‘19 at 63p), shares in CentralNic took off during the month helped by its results for the first 9 months showing an acceleration in organic growth. Revenue was US$526.7m and EBITDA was US$62m and margins continued their strong trend upwards as the company scales. The swing factor is the Online Marketing division, which has doubled organically
whilst the Online Presence division grew 4.3%. Net debt dropped by 22% to US$63.1m or 1.2x EBITDA.

In a busy end to the year, CentralNic has begun a £4m buyback and also separately acquired a portfolio of niche websites as part of its vertical integration strategy for its Online Marketing segment. The portfolio provides the company with exclusive special internet traffic to monetise and will be immediately earnings accretive.

CNIC is an astonishing cash machine at the moment and for Q4, Zeus is forecasting
US$183m sales and US$21m EBITDA, which looks to be erring on the low side as Q4 tends to be seasonally stronger. That said, most of the money on the Online Marketing side seems to be being made in Germany and there is now tax to pay having used past tax losses, so eps is 19.1 cents for FY22 and 20.4 cents next year. I will be a bit sorry to see CEO Ben Crawford stand down as CEO at this juncture, with the FD taking the reins. But our gain to date is 146% so I’m not grumbling. Strong hold."

[diesel] 16/2/2023 09:13

Agreed an approach even with a typical 30% hike on the currant price would be way undervalued. I remember the previous CEO saying that a takeover was the biggest risk to the business, but if that is out there then surely the market will price it in?

[mcdougall1] 16/2/2023 09:06

I noticed that German web hosting firm IONOS recently IPO'd on the Frankfurt exchange. You've probably seen their TV adverts featuring Helga - "I own this"

Current market cap is around €2.3 billion having dropped slightly on listing, with forecast EBITDA of €380 million for 2023. Perhaps they would also be a natural suitor in the future?

[adamb1978] 16/2/2023 08:49

Thanks for pasting that Rivaldo. Agree with your view on this (and also on KAPE). One possible turning point on CNIC might be what they on the 27th about returns of capital. I'm assuming they'll signal something about a modest dividend as well as a buyback - not expecting huge sums at all but the tone and a more balanced capital allocation policy between M&A and shareholder returns would take this in the direction of a more normal company, rather than one very heavily focussed on M&A