Cliq Digital (CLIQ) H2 2024 earnings summary

Executive summary

• 2024 marked the first sales decline after five years of growth, with a 26% drop in sales to EUR 243 million year-over-year, mainly due to fewer customers and higher churn rates.

• The company launched the "Fit for Future" transformation program, reducing headcount by 22% and incurring over EUR 11 million in special items, including EUR 2 million in restructuring costs.

• A goodwill impairment of EUR 27 million led to a net loss of EUR 28 million and negative EPS of EUR 4.75.

• The business model was diversified with new digital products, an AVOD monetization model, and an omnichannel marketing approach.

• Foundations have been fixed, and the company is focusing on renewal and future growth opportunities.

Financial highlights

• EBITDA before special items was EUR 21 million, down 58% from the prior year; normalized EBITDA margin was 9%, over 600 basis points lower than 2023.

• Reported EBITDA after special items was EUR 10 million, with a margin of 4%.

• Free cash flow was EUR 3 million, down EUR 50 million from the previous year; net cash position at year-end was EUR 12 million.

• Dividend of EUR 0.04 per share proposed, same as last year.

• Operating expenses before special items were reduced by 25% year-over-year, with personnel expenses down 34% and other operating expenses down 37% between Q1 and Q4.

Outlook and guidance

• 2025 EBITDA expected between EUR 10 million and EUR 15 million, with group sales forecasted at EUR 180 million to EUR 220 million.

• Customer acquisition cost for 2025 planned at EUR 50–75 million, about 20% less than last year.

• Medium-term outlook suspended due to market volatility; focus remains on stabilizing sales and returning to growth.

• Management notes 2025 market conditions remain unstable but expects to leverage a renewed strategy for future growth.