CLIQ Digital - Increased churn weakens FY24 outlook

CLIQ Digital delivered a disappointing start to FY24 in Q124, as its membership base fell following a change in refund programmes from credit card providers, making it easier for subscribers to cancel. Revenues fell 12%, while marketing expenses, a key growth driver for CLIQ, dropped 9% as management sought to protect its gross margin. The adjusted EBITDA margin fell to 7%, driven by the decline in sales. Management has initiated its Fit for Future transformation strategy to drive operational efficiencies, while diversifying its marketing channels from traditional display advertising into search engine advertising (SEA), affiliation and B2B partnerships. The company has cut FY24 revenue guidance by 13-17%, while EBITDA is now expected to be 48-50% lower than previously. Consequently, we have lowered our forecasts, now anticipating revenue of €305m and EBITDA of €26m in FY24 and revenue of €329m and EBITDA of €30m in FY25.

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