CLIQ Digital Reports Second Quarter 2024 Results

EQS-News: Cliq Digital AG / Key word(s): Half Year Results CLIQ Digital Reports Second Quarter 2024 Results 08.08.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. CLIQ Digital Reports Second Quarter 2024 Results

• Stronger focus on profitability than sales growth
• Quarter-on-quarter, EBITDA before special items improved (+4%) and sales decline decelerated (-7% versus -13%)
• Group-wide transformation programme making inroads on further diversification of sales channels and innovations
• 65% of max. share buyback volume already repurchased for €4.2m

DÜSSELDORF, 8 August 2024 – CLIQ Digital AG has today published its unaudited half-year financial report 2024. The report is available for download on the Company’s website at https://cliqdigital.com/investors/financialreporting.

Performance

in millions of €	2Q 2024	1Q 2024	Δ		6M 2024	6M 2023	Δ
Bundled-content	66	70	-6%		136	149	-9%
Single-content	2	3	-20%		5	11	-55%
North America	47	48	-4%		95	90	6%
Europe	14	18	-19%		32	59	-46%
Latin America	4	4	10%		7	6	25%
ROW	3	3	2%		7	4	53%
Sales	68	73	-7%		141	160	-12%
CAC[1] for the period	-28	-31	-12%		-59	-65	1%
EBITDA (before special items)	6	5	4%		11	25	-57%
EBITDA margin[2]	8%	7%			8%	16%
Profit for the period2	3	3	3%		5	16	-66%
EPS2 (in €)	0.45	0.40	13%		0.88	2.49	-65%

• Sales: In 2Q 2024, Group sales decreased by 7% quarter-on-quarter to €68 million (1Q 2024: €73 million) mainly due to the lowering of the Cost Per Acquisition (CPA) as management put a stronger focus on profitable sales. The CPA was brought more in line with the lower lifetime value (LTV) of our customers, which led to less new customer acquisitions. The LTV decreased due to higher churn rates resulting from new customer care tools in place at the card scheme companies, which led to shorter average customer loyalty durations. Regionally, the quarter-on-quarter sales decline in Europe and North America decelerated in 2Q 2024 and was 19% and 4% respectively (1Q 2024: -30% and -10% resp.). In Latin America, quarter-on-quarter sales growth was stronger than in 1Q 2024.
• Customer acquisition costs for the period: In 2Q 2024, the customer acquisition costs for the period amounted to €28 million (1Q 2024: €31 million), which as a percentage of revenue was 41% (1Q 2024: 43%). The decrease is attributable to the Group choosing to focus on profitability and subsequently deciding to lower the target Cost Per Acquisition (CPA), which also resulted in lower sales.
• EBITDA: EBITDA before special items in 2Q 2024 increased by 4% quarter-on-quarter to €6 million (1Q 2024: €5 million) and the corresponding EBITDA margin improved to 8% (1Q 2024: 7%) as a result of the reduction in customer acquisition costs and operating expenses executed in line with the Group’s focus on profitability. Reported EBITDA was €3 million. The special items related to costs incurred from the “Fit for Future” transformation programme to restructure and optimise the Group’s operational and organisational structures.
• Earnings per share: For 2Q 2024, basic EPS before special items increased by 13% to €0.45 (1Q 2024: €0.40) on the back of a profit for the period before special items of €3 million (1Q 2024: €3 million). Reported basic EPS was €0.15.
• Cash flow & liquidity: Operating free cash flow in 2Q 2024 was €0.2 million (1Q 2024: -€4 million). Cash flow from financing activities included €2 million for the repurchase of c.260 thousand shares from the Group’s share buyback programme and €0.3 million dividend distribution. As at 30 June 2024, the net cash position of the Group totalled €7 million (31/03/2024: €10 million).

Operational indicators