CentralNic Group PLC (AIM:CNIC) has posted its unaudited preliminary accounts for the financial year ended 31 December 2022, showing significant year-on-year increases in both revenue and profitability, driven by a combination of strong organic growth and accretive acquisitions.
The global internet company saw its full-year 2022 (FY2022) revenue increase by 77% to US$728.2mln (FY2021: US$410.5mln), with organic revenue growth of 60% (FY2021: 39%).
CentralNic said its net revenue (gross profit) increased by 50% to US$177.7mln (FY2021: US$118.5mln), with adjusted EBITDA rising 86% to US$86.0mln (FY2021: US$46.3mln), and profit before tax increased dramatically to US$14.8mln from US$1.6mln in FY2021, and adjusted EPS for the year increased by 70% to 20.01 US cents (FY2021: 11.80 cents).
The group saw its organic growth further accelerate during the period, driven by ongoing market share gains of its proprietary privacy-safe, AI-based customer journeys which address a multi-billion-dollar opportunity,
The number of visitor sessions increased by 77% from 2.6bn for the year ended 31 December 2021 to 4.6bn for the year ended 31 December 2022 and revenue per thousand sessions (RPM) increased by 37% from US$76.40 to US$105.00.
CentralNic said its net debt was reduced by 30% to US$56.6mln as of 31 December 2022, down from US$81.4mln as of 31 December 2021 notwithstanding around US$41mln of M&A net of related equity raises.
During the year, CentralNic acquired VGL Verlagsgesellschaft mbH, a leading product review website publisher, on 8 March 2022 for an enterprise value of €60mln (around US$65mln); on 18 July 2022, the final deferred consideration payment for the acquisition of KeyDrive SA was settled in cash totalling US$1.1mln; on 13 September 2022, M.A Aporia was acquired for an initial consideration of US$11.2mln; and on 26 October 2022, CentralNic acquired Intellectual Property Management Company for an enterprise value of US$7.3mln.
On 31 October 2022, the company re-financed its debt facilities consisting of a US$150mln term loan and a US$100mln revolving credit facility with an initial maturity date of 14 October 2026 and an option to extend by a further year, and in November 2022, CentralNic entered into three separate interest rate swap transactions to fix the variable interest component on US$75mln of the new US$150mln term loan at a blended rate of 3.92%.
The company has proposed a final dividend of 1.0p, reflecting a greater emphasis on returns to shareholders in future.
In the results statement, Michael Riedl, CEO of CentralNic, commented: "I am absolutely delighted with CentralNic's performance in 2022, achieving record revenue and profit, despite the challenging macro-economic environment. This remarkable achievement stands as a testament to the exceptional business portfolio our team has successfully built.
"Moving forward, we shall continue to exhibit the same level of discipline and efficiency as we accelerate our product rollouts, launch strategic partnerships, and enhance our scalability. Our unwavering focus on innovation and operational excellence will be the cornerstone of our success."
He added: "Whilst early into the new financial year, we anticipate 2023 will see yet another year of robust growth and shareholder returns. We remain committed to delivering outstanding value to our shareholders, and we are confident of another successful year.
"Given this confidence, I am pleased to announce that the directors intend to propose paying a maiden dividend of 1.0p for the year 2022 to the AGM to be held in late April. This is the next step of our plan of returning cash to shareholders, following the completion of our maiden share buyback programme in early 2023. I look forward to keeping you updated on our progress throughout 2023."
In early trading on Monday, CentralNic shares rose 4.7% to 146.00p.