CLIQ Digital AG: QUIRIN Privatbank Equity Research raises the price target to EUR 16.00 after increased company outlook for 2020 and confirms “BUY” recommendation

Dusseldorf, 9 July 2020 - The analysts of QUIRIN Privatbank Equity Research have recently published a new research update on the CLIQ Digital share (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading digital lifestyle company, providing consumers worldwide with streaming entertainment services.

After the considerably increased outlook for the current financial year, communicated by the Company's Management on 6 July 2020, QUIRIN decided to raise its price target from EUR 10.00 up to EUR 16.00. Consequently, the analysts' recommendation has remained 'BUY'. Based on the new outlook for this year, CLIQ Digital estimates gross revenues of approximately EUR 90 million, which means a growth rate of more than 40% compared to the financial year 2019, and an EBITDA of at least EUR 10 million, corresponding to approximately 75% more than the 2019 financial year.

CLIQ Digital expects a stronger increase in its gross revenue and EBITDA for the year due to the high levels of marketing spend during the first six months of this financial year. During the second quarter, the Company was also able to maintain its important KPI CLIQ Factor (a key indicator for measuring the profitability of new customers) above 1.58, the number indicated in its previous outlook for this financial year 2020.

The analysts of QUIRIN stated that the strong improvements of CLIQ are caused by the Company´s successful media buying strategy, combined with attractive content offerings. Furthermore, a major source of growth lies in the expected increasing marketing spend from its former outlook (EUR 26 million) to approximately EUR 30 million, which should pave the way for further growth even after full year 2020.

You can find the current commentary by QUIRIN Privatbank Equity Research on the CLIQ Digital AG website under the following link:

/blog/front-IR/analysts/

Dusseldorf, 6 July 2020 - The Management Board of CLIQ Digital AG (ISIN DE000A0HHJR3, WKN A0HHJR) has resolved today to increase its outlook for the current financial year 2020. The Company expects a stronger increase of its gross revenue for the year due to the high levels of marketing spend in the first six months of the financial year. During the second quarter, the Company was also able to maintain its important KPI CLIQ factor above the 1.58 indicated in its previous outlook for this financial year 2020.

The Management Board now estimates that in the financial year 2020 gross revenues of approximately EUR 90 million (corresponding to a growth rate of more than 40% compared to the financial year 2019) and an EBITDA of at least EUR 10 million (corresponding to a growth rate of approx. 75% compared to the financial year 2019) will be realized. At the same time the Management Board expects a marketing spend of approximately EUR 30 million (corresponding to a growth rate of approx. 35% compared to the financial year 2019). Previously, the Management Board expected for the financial year 2020 a gross revenue of at least EUR 75 million, marketing spend of EUR 26 million and an EBITDA of at least EUR 7.5 million. All numbers were determined on a consolidated basis under IFRS.

The Company will publish its half year figures on 20 August 2020.

Dusseldorf, June 29, 2020 - The analysts of Hauck & Aufhäuser Privatbankiers AG have started coverage of the CLIQ Digital share (ISIN DE000A0HHJR3, GSIN A0HHJR).

cliqdigital.com/download-hauck-aufhauser/

Analyst Marie-Therese Gruebner issues a buy recommendation with a price target of EUR 17.00, based on a combination of free cash flow yield based on her 2021 estimates and a discounted cash flow model. This corresponds to an upside potential at the current share price of around 150%.

In the initial study, Hauck & Aufhäuser particularly emphasizes on the high competence and efficiency in the marketing of streaming entertainment services. The robust consumer demand for streaming entertainment services, efficient direct media buying and offering a multi-content portal will, according to the analysts, allow a doubling of the return on capital employed to more than 16% by 2022. Based on this, they expect growth in earnings per share of 44% per year on average until 2022, combined with high free cash flows, which will allow a generous dividend policy with a dividend yield of 6.2% on average.

• - Proposal for a total dividend of 28 cents consisting of a basic dividend of 14 cents and an additional bonus dividend of 14 cents per CLIQ share to honor loyal shareholders
• - Dividend payout ratio to be 40% of consolidated net income (after minority interests) in the coming fiscal years

Dusseldorf, June 25, 2020 -The Management Board and Supervisory Board of CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading digital lifestyle company offering streaming entertainment services to consumers worldwide, have decided on the fundamental principles of the dividend policy. In each of the coming financial years, a total of 40% of consolidated net income (after minority interests) in accordance with IFRS is to be distributed to shareholders, provided the legal requirements for this are met.

Furthermore, the Management and Supervisory Board agreed to propose to the 2020 Annual General Meeting the payment of a bonus dividend to honor its loyal shareholders. Thus, the total amount of the dividend proposal, consisting of the basic dividend of 14 cents per share and a special distribution of 14 cents per share, amounts to 28 cents per share. This dividend (basic dividend and bonus dividend) corresponds to a dividend yield of 4.7% based on the closing price of EUR 6.00 of CLIQ Digital shares on June 22, 2020, if approved by the Annual Shareholders' Meeting. The initial resolution on the appropriation of profits, which was adopted on 31 March 2020 in connection with the preparation of the annual financial statements for the 2019 financial year and provided for the balance sheet profit to be carried forward in full, was amended accordingly. Dividend payments are planned for the coming financial years in accordance with the new dividend policy.

CLIQ Digital wants its shareholders to benefit from the company's success with a sustainable dividend policy and to increase the share's attractiveness for a larger group of investors. Over the past six years, the company has succeeded in significantly increasing its profitability with a compound annual growth rate of 30% (CAGR) on net income and by generating positive cash flows.

CLIQ Digital has positioned and differentiated itself as an all-in-one streaming service provider in the streaming entertainment sector, in order to continue its growth path. The market research company Goldmedia, for example, expects revenues from streaming services to reach EUR 4.3 billion alone in Germany this year. By 2024, the volume is expected to increase to EUR 6.5 billion. Compared to 2019, this would correspond to a growth of more than 80% in terms of revenue, at EUR 3.6 billion. Also in the area of gaming for mobile devices, experts are expecting continued positive development. The research Institute Newszoo expects the volume of the gaming market to increase at an average annual growth rate of 8.3% by 2023.

CLIQ Digital, with its membership based streaming entertainment services as well as its longstanding expertise in the games sector, is ideally positioned to benefit from the dynamic development of the market. Established research houses and banks confirm CLIQ Digital's positive development and expect profitable company growth for the future. CLIQ's membership based streaming model has the potential to generate sustainable cash flows. This is the basis for a more visible and scalable business model.

'It makes us very happy and proud to be able to share the company's success with our shareholders with a dividend after more than ten years. We have now laid the foundations for a dividend policy that meets our shareholders' wishes for an appropriate participation without putting at risk our ability to finance our growth targets. Together with our expanded business model, we are increasing the attractiveness for capital market participants and, at the same time, enabling us to continue our growth in the promising streaming entertainment market,' says Ben Bos, member of the Management Board.

Furthermore, the Management Board and the Supervisory Board passed a resolution on the convening of the Annual General Meeting on 21 August 2020 in Düsseldorf. The Annual General Meeting is to be held as a physical meeting. However, this is subject to the proviso that the development of the COVID-19 infections allows a corresponding physical meeting at that time. The dividend is expected to be paid out on 26 August 2020, if the General Meeting adopts the resolution on the appropriation of profits as proposed.

Dusseldorf, June 17, 2020 - The Analysts of QUIRIN Privatbank Equity Research have initiated coverage on the CLIQ Digital share (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading digital lifestyle company, providing consumers worldwide with streaming entertainment services. Based on the Company's inspiring growth perspectives the independent analysts give a buy recommendation with a target price of EUR 10.00. This equates to an upside potential to the current share price of approx. 90%.

In QUIRIN's initial study, analysts Ralf Marinoni and Jannik Lucas state: 'CLIQ Digital to benefit from rising demand for streaming content.' QUIRIN continues: 'Research institute Newszoo expects games market volume to grow at 8.3% CAGR throughout 2023e. Revenue in the Video Streaming (SVoD) segment is expected to show an annual growth rate (CAGR 2020- 2024) of 4.1%. Revenue in the Digital Music segment is expected to show an annual growth rate (CAGR 2020-2024) of 4.6%. Given CLIQ's sales growth over the next year, the company should outperform the market.'

The research study is available on the CLIQ Digital AG website under:

/wp-content/uploads/2020/06/CLIQ_DIGITAL_AG_20200531.pdf

• - Gross revenue increased by 47% to EUR 20.2 million in Q1 2020 (Q1 2019: EUR 13.8 million)
• - Significant growth in marketing spend (plus 54%) in Q1 2020
• - EBITDA increased by 108% in Q1 2020 to EUR 2.2 million (Q1 2019: EUR 1.1 million)
• - Results positively influenced by an improved CLIQ factor of 1.61 for Q1 2020

Dusseldorf, May 15, 2020 - CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, today announced its business development for the first three months of 2020.

Strong development of all KPIs

CLIQ Digital continues to show strong growth on all key financial performance indicators in the first quarter of 2020 compared to the same period last year.

Amounts in EUR million		Q1 2019	Q1 2020	Change
Gross revenue		13.8	20.2	+47%
Net revenue		9.6	14.9	+56%
Marketing spend		5.1	7.8	+54%
EBITDA		1.1	2.2	+108%
Customer base value (in EUR million)		24.0	29.0
CLIQ-factor		1.34	1.61

Gross revenue increased in the period January to March 2020 by 47% to EUR 20.2 million compared with EUR 13.8 million in the first quarter of 2019. Net revenue - after deduction of payment service provider costs - went up by 56% to EUR 14.9 million for the three-months-period (Q1 2019: EUR 9.6 million). The increase in gross and net revenue was driven by the significant rise in marketing spend during 2019 combined with an improved CLIQ factor of 1.61 during the first quarter compared to 1.51 (FY 2019). The increase of the CLIQ factor (representing the ratio of revenue to costs per customer as a key indicator for measuring the profitability of new customers) underlines the successful integration of the direct media buy strategy by the CLIQ Digital Group.

EBITDA for the first quarter of 2020 came in at EUR 2.2 million. This represents an increase of 108% compared to the EBITDA for the first quarter of 2019 (EUR 1.1 million).

The customer base value, an important indicator for estimating the expected net revenue based on existing customers, increased to EUR 29.0 million at the end of the first quarter of 2020 compared to EUR 26.0 million at the end of the fourth quarter of 2019.

'We have been able to impressively continue the momentum of 2019. This success is based above all on our adjusted strategy of taking media buying into our own hands as well as investments made in our content portfolio. We have made decisive progress in acquiring new customers and finding the right marketing mix in combination with our content portfolio, as can be clearly seen from success indicators such as the marketing spend and the CLIQ-factor. Now it is important to continue on our path, which is aimed at sustainable growth,' says Ben Bos, member of the Management Board.

Outlook confirmed 2020

CLIQ Digital has continued its growth path and delivered with an increase on all key performance indicators in the first quarter of 2020. The Management Board confirms its strong outlook for the financial year 2020, aiming at an organic gross revenue growth of 19% to EUR 75.0 million (2019: EUR 63.1 million) and an EBITDA growing by 30% to at least EUR 7.5 million (2019: EUR 5.8 million).

The first quarter figures for 2020 are unaudited and were not subject to review.

• 2019 audited consolidated financial statements confirm preliminary figures published on Feb 13
• All key financial performance indicators show significant improvement, outperforming communicated targets
• Strong outlook for 2020: EBITDA to increase by 30% to at least EUR 7.5 million

Dusseldorf, April 2, 2020 - CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, today announced its audited 2019 consolidated financial statements in line with the preliminary figures published on February 13, 2020.

Revenue and earnings development

CLIQ Digital generated revenue growth and a significant increase in net result in the 2019 financial year. All key financial performance indicators show a significant improvement in 2019 compared to the previous year.

Amounts in EUR million		2019	2018	Change
Gross revenue		63.1	58.2	+8%
Net revenue		44.2	39.1	+13%
Marketing spend		22.2	18.8	+18%
EBITDA		5.8	3.9	+49%
Net result		3.9	3.0	+30%
Customer base value (in EUR million)		26.0	24.0
CLIQ-factor		1.51	1.36

The key performance indicators for the year 2019, indicated in the table above, show a strong increase in numbers compared to the financial year 2018, caused by a combination of a successful media buying strategy, investments in the content portfolio and realization of synergies between the foreign subsidiaries. The financial performance increased mainly in the second half year of 2019 showing a 24% increase in gross revenue from EUR 28.2 million in H1 2019 to EUR 34.9 million in H2 2019.

The increase in net revenues (gross revenues less payment service provider costs) by 13% y-o-y to EUR 44.2 million (2018: EUR 39.1 million) was driven by the higher marketing spend for the year and the higher customer profitability. Marketing spend increased by 18% y-o-y to EUR 22.2 million in the year under review (2018: EUR 18.8 million), whereby the profitability of new customers expressed in terms of the CLIQ factor also improved significantly from 1.36 to 1.51. Both marketing spend and CLIQ Factor, a key indicator for measuring the profitability of new customers, have been positively influenced by the successful direct media buy strategy resulting in an increasing number of new customers with a higher profitability.

The operating result (EBITDA) increased significantly in 2019 by 49% to EUR 5.8 million (2018: EUR 3.9 million). For the full year EPS came in at EUR 0.36, which is slightly higher than EUR 0.35 for the year 2018. On a half-year comparison, EPS increased from EUR 0.08 in the first six months of 2019 to EUR 0.28 in the second half year of 2019.

Outlook 2020

The organic growth as shown in the second half year of the financial year 2019 also continues for the year 2020. With the focus on direct media buying, further investments in content, CLIQ Digital Group is ready to scale its activities and realize further growth in the upcoming years. Against this background, the Management Board of CLIQ Digital is optimistic for the year 2020 and expects a significant EBITDA growth of 30% to EUR 7.5 million (2019: EUR 5.8 million).

Amounts in EUR million		2020e	2019	Change
Gross revenue		75.0	63.1	+19%
Marketing spend		26.0	22.2	+17%
EBITDA		7.5	5.8	+30%
CLIQ-factor		1.58	1.51

CLIQ Digital is aiming at an organic revenue growth of 19% to EUR 75.0 million (2019: EUR 63.1 million) with marketing spend increasing similarly by 17% to EUR 26.0 million (2019: EUR 22.2 million). The Management Board expects the CLIQ Factor to further increase to 1.58.

Irrespective to the expected strong organic growth CLIQ Digital could be one of the exceptions which would not be negatively affected by the COVID-19 pandemic, as it has been shown in the past that even in times of recession there is no reduction in demand for digital entertainment.

The audited Annual Report 2019 is now available for download at www.cliqdigital.com in the Investor Relations section.

- Warburg Research analyst Felix Ellmann sees no negative effects of coronavirus on CLIQ Digital AG

- In the current environment, the increasing demand for digital entertainment services opens up additional marketing opportunities for CLIQ Digital

- 'Massive increase in earnings expected in 2020, combined with a quite high visibility'

Dusseldorf, March 19, 2020 - The shares of CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, have been revalued by Warburg Research AG in a recent research update. Analyst Felix Ellmann has raised the price target to EUR 6.10 (previously: EUR 5.40) and continues to issue a 'buy' recommendation: 'While most companies are negatively affected by the corona virus, CLIQ Digital could be one of the few exceptions and even benefit. This is particularly interesting as the share has also suffered considerable price losses in the context of weak markets'.

'In times of crisis, companies like CLIQ will benefit'

It has been shown in the past that even in times of recession there was a demand for entertainment and people still 'went to the movies'. Since it is one of the peculiarities of a pandemic that such public entertainment offerings are no longer appropriate or possible, this could, in Ellmann's opinion, represent an opportunity for CLIQ. Especially since it is to be expected that customers will consume more digital content since their area of life is increasingly sealed off and at the same time their willingness to pay for digital entertainments services is likely to grow.

'In the context of recessive tendencies, the purchase of online advertising could also become cheaper. This is the significant cost factor. If other digital advertisers would reduce their online media budgets this could lead to an increase in available media placements at a lower price, contributing to further growth and profitability of CLIQ Digital,' says Warburg analyst Ellmann.

Warburg Analyst Ellman continues: 'The company has one of the very few business models that is likely to show a massive increase in earnings in 2020 combined with quite high visibility.'

The current commentary by Warburg Research can be found on the CLIQ Digital AG website under the following link:
/wp-content/uploads/2020/03/Cliq_Digital_Comment_20200313_en.pdf

- Gross revenues up 8% to EUR 63.1 million (2018: EUR 58.2 million)

- Net revenues increased by 13% to EUR 44.3 million (2018: EUR 39.1 million)

- EBITDA increased significantly by 49% to EUR 5.8 million (2018: EUR 3.9 million)

- Main KPI's: Marketing expenses up 18% compared to previous year and CLIQ factor to 1.51 (2018: 1.36)

- Outlook 2020: significant (double-digit) growth in all numbers expected

Dusseldorf, February 13, 2020 - CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, today announced its preliminary figures for the 2019 financial year.

Revenue and earnings development

In the 2019 financial year, the CLIQ Digital Group improved its key figures compared to the previous year:

Amounts in EUR million		2018	2019	change
Gross Revenue		58.2	63.1	+8%
Net Revenue		39.1	44.3	+13%
Marketing Spend		18.8	22.2	+18%
EBITDA		3.9	5.8	+49%
Customer Base Value (in EUR million)		24.0	26.0
CLIQ Factor		1.36	1.51

According to preliminary calculations, CLIQ Digital generated gross revenues of EUR 63.1 million in the 2019 financial year compared to EUR 58.2 million in the previous year (up 8%). Net revenues - after deduction of payment service provider costs - rose by 13% to EUR 44.3 million in the year under review (2018: EUR 39.1 million). EBITDA increased significantly by 49% to EUR 5.8 million in 2019 (2018: EUR 3.9 million). The reason for the significantly improved earnings figures is the shift regarding the applied marketing strategy. In the past, the company was focused on marketing via third party partners. During the last 18 months, CLIQ Digital has significantly invested in its in-house direct media buying team. This resulted in increased marketing expenses by 18% year-on-year to EUR 22.2 million (2018: EUR 18.8 million) and at the same time significantly improved profitability (CLIQ factor).

Development of KPIs

All key figures show a significant improvement over the previous year. The CLIQ factor, a key indicator for measuring the profitability of new customers, rose to 1.51 in the 2019 financial year, compared to 1.36 in the previous year, as a result of the successful implementation of the direct media buying strategy by the CLIQ Digital Group.

The customer base value, an important indicator for the estimating of expected cash inflow based on existing customers, was EUR 26.0 million at the end of the fourth quarter of 2019 compared to EUR 25.5 million at the end of the third quarter of 2019 and EUR 24.0 million at the 2018 reporting date.

The 2019 business figures are preliminary and have not yet been audited. CLIQ Digital AG will publish detailed statements on the development of business and earnings with the final audited annual financial statements for 2019 in accordance with IFRS as well as an outlook for the 2020 financial year with the publication of its annual report 2019 on April 2, 2020.

Outlook 2020

Management is very excited about the development of the figures, especially during the second half-year of 2019. 'We are confident that the increase in Gross and Net Revenue as well as EBITDA will continue in 2020 and expect a significant (double-digit) growth for the full year 2020 in all numbers,' says Ben Bos, member of the Management Board.

- Financing of EUR 13.5 million with Commerzbank and Postbank secured until March 2022
- Increased shareholding in subsidiary Red27Mobile strengthens market position with digital content
- Management Board contracts of Luc Voncken and Ben Bos extended for a further five years

Dusseldorf, 18 December 2019 - CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading direct marketing and sales organization for digital products with its own global payment and distribution platform, secured its financing facility today to support its growth strategy. After a dynamic growth in gross revenue over the last four quarters of 24% (CAGR) and doubling its Q3 2019 earnings before interest, taxes, depreciation and amortization (EBITDA) compared to Q3 2018, the Group has created a solid basis for further growth.

CLIQ Digital AG has concluded a loan facility with a syndicate of banks consisting of Commerzbank and Postbank. The agreement consist of a fixed line and a borrowing base facility up to EUR 13.5 million and a term running until March 2022. The interest rate applicable on the fixed line varies between 2,65% and 2,9% plus Euribor and varies between 2,00% and 2,15% plus Euribor for the borrowing base facility . The new loan agreement was signed on 17 December 2019 and became effective on the next day.

The syndicated loan secures the financing of CLIQ Digital growth strategy going forward by increasing its marketing efforts for customer acquisition. For 2019 CLIQ Digital will show a growth of its marketing expenditure by approximately 17% (estimated per today) compared to 2018. The efficiency of the marketing activities showed in itself a strong performance during the third quarter of 2019, as the CLIQ factor increased to 1.53, compared to 1.32 in the third quarter 2018. The CLIQ factor represents the ratio of revenues to costs per customer and is an important indicator for measuring new customers' profitability.

In order to further align the Group for its growth strategy, CLIQ Digital has increased its shareholding in its subsidiary Red27Mobile Ltd. (Red27) from 51% to 80% in November 2019. By expanding its shareholding, CLIQ Digital is strengthening its position to benefit from the dynamically growing digital content market and related changes in consumer behavior. CLIQ Digital has been holding a participation in Red27 since July 2017.

The company also demonstrates its continuity with its management. The Supervisory Board of CLIQ Digital AG unanimously decided to extend the contracts of the Management Board members Luc Voncken and Ben Bos by a further five years until mid 2024. Luc Voncken has been a member of the Management Board since 2012. Ben Bos is as a board member since 2014. By extending both Management Board contracts, the Supervisory Board is sending a clear signal of continuity and underlining the recent management successes on the road to further growth.