Cliq Digital (CLIQ) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales declined 21% quarter-on-quarter to €54 million, but EBITDA stabilized at €6 million and margin improved to 11% due to cost-cutting and restructuring.

• Profit for the period before special items was €3 million, with EPS stable at €0.45.

• Strategic focus shifted to profitability, cash generation, and cost control, with transformation and diversification of sales channels underway.

• New digital products and an AVOD model are launching in the US as part of a broader transformation program.

Financial highlights

• Q3 2024 revenue was €54 million, with bundled content sales making up 97% of total revenue.

• EBITDA before special items increased 2% quarter-on-quarter to €5.7 million, with margin rising to 11%.

• Net profit before special items rose 3% sequentially to €3 million; EPS was flat at €0.45.

• Operating free cash flow improved to €3.1 million from -€0.2 million in Q2 2024.

• Net cash position at quarter-end was €8.7 million, up from €7.2 million.

Outlook and guidance

• Management remains cautiously optimistic about meeting full-year 2024 guidance, with a sales forecast of €260–280 million and EBITDA of €10–20 million.

• Fit for the Future transformation program expected to complete in Q1 2025, with further cost savings anticipated.

• Marketing budget is expected to increase after the transformation, with 2025 guidance to be disclosed in February 2025.

• Mid-term goal of €400 million annual revenue by Q4 2026.