Centralnic Share Discussion Threads

[diesel] 14/11/2022 09:52

Another early morning shake?

[jeanesy] 14/11/2022 09:41

Results next monday. Still looks very cheap imo.

[someuwin] 13/11/2022 14:39

Ben Crawford @_BenCrawford_ ·3h
Thrilled to be attending the @b20 meeting in Bali today. I'll be representing @CentralNic as an advocate for an improved open internet that helps to provide sustainable economic growth for all.
@g20org #B20 #B20isBack #G20

[earwacks] 11/11/2022 11:11

Ace find someuwin.thanks for posting. This info is further evidence of how much under the radar cnic has been.

[someuwin] 11/11/2022 08:54

CNIC CEO off to the G20 Summit 2022 in Bali this weekend, mingling with the great and the good. I think Musk and Bezos could do with some new ideas / assistance right now.


"Prominent attendees will include Tesla CEO Elon Musk, Amazon Executive Chairman Jeff Bezos, Alibaba Chairman Daniel Zhang, Hon Hai Technology Group (Foxconn) Chairman Young Liu, HSBC Group Chairman Mark Tucker, World Economic Forum founder Klaus Schwab, and UN Women Goodwill Ambassador, Anne Hathaway."

...Ben Crawford, CEO of CentralNic, said: “I am honoured to represent CentralNic Group as an exponent of an improved open internet at the world’s foremost intergovernmental forum, and to make our contribution towards creating greater prosperity for the whole world by accelerating sustainable economic growth.

The internet is the lifeblood of the global economy and arguably the biggest factor in improving the human condition on our planet. Its importance will only grow in the future, as half of the world’s population is already online, and the other half is rapidly becoming connected. CentralNic is dedicated to bringing its 25 years of expertise in internet technology, best practice and innovation to improve the digital economy. We take special pride in supporting the digital transformation of developed and developing countries by partnering with governments to enable millions of people to realise their aspirations online.

I believe that our world will become a much better place when the extraordinary potential of the internet is achieved through increased efficiency, safety, privacy and inclusiveness. That’s why I look forward to sharing the knowledge accumulated by our global team of experts and exchanging ideas and knowledge with the attending Heads of State and other participants of the G20 Summit.”

[someuwin] 10/11/2022 15:38

...Yup - about time too. This one is still undervalued.

[nfs] 10/11/2022 15:36

Finally CNIC joins in the rally

[rivaldo] 09/11/2022 07:21

The Q3 results which will "materially exceed" expectations will be out on November 22nd, with an Investor Meet webinar too.

Should be good :o))

[someuwin] 07/11/2022 14:42

CentralNic Group Joins the G20 Summit in Bali

LONDON, Nov. 7, 2022 /PRNewswire/ -- CentralNic Group PLC (AIM: CNIC), the company dedicated to building a better global digital economy, is pleased to announce that its CEO Ben Crawford will join the Business 20 ("B20") Summit as part of the G20 Summit 2022 in Bali, Indonesia, on November 13-15.

Ben Crawford will be among a select group of CEOs from the world's leading companies who will join the G20 Summit to discuss the most significant challenges and opportunities of our time, share their experiences and discuss future international policies and initiatives with the participating Heads of State. Prominent attendees will include Tesla CEO Elon Musk, Amazon Executive Chairman Jeff Bezos, Alibaba Chairman Daniel Zhang, Hon Hai Technology Group (Foxconn) Chairman Young Liu, HSBC Group Chairman Mark Tucker, World Economic Forum founder Klaus Schwab, and UN Women Goodwill Ambassador, Anne Hathaway.

Ben Crawford, CEO of CentralNic, said: "I am honoured to represent CentralNic Group as an exponent of an improved open internet at the world's foremost intergovernmental forum, and to make our contribution towards creating greater prosperity for the whole world by accelerating sustainable economic growth.

The internet is the lifeblood of the global economy and arguably the biggest factor in improving the human condition on our planet. Its importance will only grow in the future, as half of the world's population is already online, and the other half is rapidly becoming connected. CentralNic is dedicated to bringing its 25 years of expertise in internet technology, best practice and innovation to improve the digital economy. We take special pride in supporting the digital transformation of developed and developing countries by partnering with governments to enable millions of people to realise their aspirations online.

I believe that our world will become a much better place when the extraordinary potential of the internet is achieved through increased efficiency, safety, privacy and inclusiveness. That's why I look forward to sharing the knowledge accumulated by our global team of experts and exchanging ideas and knowledge with the attending Heads of State and other participants of the G20 Summit."

[rivaldo] 07/11/2022 11:02

Cheers re the new thread someuwin - perhaps you could include the actual forecasts in the thread header to illustrate just how low CNIC's multiples are?

Techinvest's new issue is now out, so it should be OK to post their Buy recommendation and extensive review of the interims from last month's issue.

It's worth noting that Zeus Capital's forecasts are well ahead of those quoted below, at 20.9c EPS for this year and 22c EPS for next year:

"CentralNic has reported record revenue and adjusted EBITDA for the six months ended June 30, driven by a mix of organic growth and contributions from recent acquisitions. Revenue increased by 93% to US$334.6m, with organic revenue growth of 62%. Gross profit increased by 51% to US$82.1m and adjusted EBITDA was 97% higher at US$38.6m. Operating profit was US$21.7m compared to US$3.1m a year earlier. Adjusted operating cash conversion was 110% and net debt declined by 22% to US$63.6m.

Management expressed confidence that the company is comfortably trading towards the high end of the recently upgraded forecasts.

On a divisional basis, the Online Marketing segment further accelerated its growth with revenues increasing by 167% to US$257.8m. Organic revenue grew at a rate of 98%, predominantly driven by the company’s TONIC media buying business; inorganic growth was contributed by the Wando, White & Case, VGL and Fireball acquisitions. The number of visitor sessions also increased by 82% to 2.0 billion and the revenue per thousand sessions increased by 87% to US$106. The Online Presence division was impacted by exchange rates as foreign currency revenues translated into fewer US dollars in the period. As a result, revenue reduced by 1% to US$76.8m. Nonetheless, organic growth for this segment was 5% for the trailing twelve months ended June 30. CentralNic steered away from increasing sales through discounted bulk sales, improving the quality of revenue. The average revenue per domain year increased by 8% to US$9.60, while the number of processed domain registrations decreased by 0.5m to 6.0m.

Separately, CentralNic announced that it has agreed to acquire M.A Aporia for an initial consideration of US$11.2m in cash subject to customary adjustments for net cash and working capital. Aporia is a technology company operating in the fields of social media and native advertising. In 2021, Aporia generated revenue of US$35m, gross profit of US$3.5m and EBITDA of US$2.0m. CentralNic commented that the acquisition, which will be immediately earnings accretive, is part of a larger vertical integration strategy, providing the group’s Online Marketing segment with more direct access to high quality traffic to monetise. Under the terms of the agreement, the sellers of Aporia may earn up to another US$7.8m payable over a performance period until and including 2024.

These results demonstrate the continued momentum within CentralNic’s business and the significant potential of its strong marketplace model for online presence and online marketing services. The company has positioned itself to benefit from changing attitudes to online privacy, as none of its marketing platforms make use of third-party cookies or collect personal data on customers. This aligns CentralNic with restrictions placed on the use of cookies, such as the ban of third-party cookies in Google Chrome or App Tracking Transparency in Apple’s iOS 14.5.

Meanwhile, the acquisition of Aporia represents a significant step forward in CentralNic’s vertical integration strategy which aims to create a more efficient ecosystem in the Online Marketing business, removing transaction costs and friction losses. The pipeline of future acquisition targets also remains strong, while the net debt level has substantially reduced and is now only 1.3x trailing 12-month EBITDA. For the current year, consensus broker forecast is for earnings per share of 14.2p, rising to 15.6p for fiscal 2023. On a prospective P/E of 7.1 for next year, we feel that the shares represent excellent value. Buy."

[mammyoko] 07/11/2022 10:38

Big seller here - I just got quoted for £250k by HL

[1jbrisky] 07/11/2022 10:32

There's been a constant seller here for months.

[mammyoko] 07/11/2022 10:23

Big seller here -0 I just got quoted for £250k

[someuwin] 07/11/2022 09:15

Q3 results and webinar / conference call in two weeks' time.

[someuwin] 06/11/2022 20:49

New thread with volume charts in the header,

[someuwin] 06/11/2022 20:46

Note that for the 2022 figure I've used analysts forecast of $626m. But we know from the 17th Oct 2022 trading update that they "will materially exceed the current market expectations" - so nearer $700m maybe!

[rivaldo] 04/11/2022 13:50

Cheers someuwin.

Berenberg reiterated their Buy and 250p price target whilst I was on hols:

[someuwin] 04/11/2022 10:34

Brief mention in this week's Shares mag.

[simon gordon] 03/11/2022 11:51

Oddlots podcast - 3/11/22:

Mark Bergen on Apple's Threat to the Online Ad Industry

After years of basically printing money, the big online Internet behemoths are starting to stumble for various reasons. There's the macro slowdowns. New competition. And just basic threats to the way they do business. One major change has come from Apple, which has used its device dominance to curtail how apps can collect information on users, making targeting harder than it used to be. On this episode we speak to Bloomberg reporter Mark Bergen, the author of Like, Comment, Subscribe: Inside YouTube's Chaotic Rise to World Domination, about the difficult challenges facing the industry.

[rivaldo] 02/11/2022 10:13

Been away on family hols for nigh on three weeks, and there's been just a little news flow :o))

- more director/Kestrel share buying
- yet another "materially exceeding" trading statement for Q3
- another earnings-enhancing acquisition
- a successful refinancing materially reducing costs

Zeus Capital now forecast 20.9c EPS this year, rising to 22c next year. So with around 18.2p EPS for 2022, CNIC will soon be on a historic P/E of just 7.1.

The share price has moved back up somewhat, but is still ridiculously undervalued imho.

[tole] 01/11/2022 16:40

https://masterinvestor.co.uk/equities/sysgroup-centralnic-and-nine-other-interesting-small-cap-stocks/CentralNic Group (LON:CNIC) – a big winner for 2023Last Wednesdaythis global internet platform, that derives recurring revenue from marketplaces for online presence and online marketing services, announced the $7.6m cash acquisition of Intellectual Property Management Co. Inc, a California-based corporate domain name management business with many globally recognised brands among its customers.The group expects this move to give better coverage and increased market share in the North American market as well as synergies from streamlining procurement and operations. The acquisition will be immediately earnings accretive.Ben Crawford, CEO of CentralNic, said: "Domain management to protect enterprise customers against cyber squatters is a strategic priority for CentralNic. IPMC has been entrusted with the protection of some of the finest brands in the world, which will now join more than 1,000 corporations and organisations that already rely on CentralNic's domain management suite of services."Analyst Bob Liao at Zeus Capital is very positive about the group. He is going for current year revenues to end December of $709.6m ($410.5m) with an adjusted EBITDA of $82.0m ($46.3m), worth basic adjusted earnings of 20.9c (11.8c) per share.The Q3 results will be out on Wednesday 21 November.Between now and then investors should keep a close watch on the shares, looking to be tempted at around the 120p level in order to stock up on more for portfolios.The shares closed at 128.5p on Friday night.If you are not buying then hold very tightly because I still consider that this is a real cracker and could well turn out to be one of the big winners in 2023.

[someuwin] 01/11/2022 13:05

A picture paints a 1000 words. Look at the phenomenal revenue growth!

Note that for the 2022 figure I've used analysts forecast of $626m. But we know from the 17th Oct trading update that they "will materially exceed the current market expectations" - so nearer $700m maybe?

[earwacks] 01/11/2022 12:07

I think you hit the nail on the head about the ridiculous name. Certainly it has taken some unravelling to work out the different components of the group. Must be getting on for 20 acquisitions now. The founder is heavily invested by which i mean over 17 million shares which he has slowly accumulated with his own money in placings and fall backs. likewise Kesterel who have several companies some which they have since sold on own a massive stake too for staff and directors. I would imagine that it might be a little tricky for institutions to get a meaningful holding at the moment without seriously elevating the price. Every time it falls back to Below placing i think ok what have i missed. Is it t he debt is it the bond is it the sustainability of growth in question? This is now over 25% of my portfolio in ISA and ordinary account. My only question is why not more? I have in the past had similar weighting's in other stock and actually sold too soon. I think once she blows it will just keep climbing. Its not just about sustainability of growth but the incredible acceleration of growth as you say with less than 1% of the potential market. The wider economy cannot be ignored but then that would equally effect other investments and I have searched high and low for anything anywhere near their potential with a reasonable risk/reward without success

[someuwin] 01/11/2022 10:59

I've overlooked this company in the past. Partly because it's not immediately obvious what they do, and partly because they have an odd name (normally a red flag)

However, having bought in recently I've been doing a bit more proper research. And all I can say is - WOW! What a business model this is. Phenomenal growth, huge cash generation and operating in one of the biggest markets in the world. As the CEO says, if they kept increasing revenues at 50% per year, by 2030 they'd still only have less than 1% of the market!

I think this is now my new favourite stock and I'm going to keep adding.

"We're just at the beginning of our voyage..."