CentralNic is advancing after its acquisition spree

CentralNic Group PLC is the developer and operator of software platforms providing web presence services to customers in almost every country in the world.

The company is a leading provider of tools required to create websites, use email, and secure business online.

Headquartered in London, the company generates revenue and income from the worldwide sale of internet domain names, hosting and monetisation of domains on an annual subscription basis.

CentralNic Group PLC (AIM:CNIC) reiterated its results for 2021 will be “comfortably” at the upper end of forecasts.

Results for the nine months to end-September were in line with an earlier trading statement, said the domain name platform operator, with revenues a shade higher than predicted at US$282mln, up 67% and underlying profit 46% higher at US$32.3mln.

Ben Crawford, chief executive, said: “CentralNic has enjoyed a very strong first nine months of 2021, across both our online presence subscription products and our privacy enabled online marketing technologies – achieving record organic growth of 29% for the year to date.

“The pipeline of future acquisition targets remains strong, and we are confident in continuing our trajectory towards joining the ranks of the global leaders in our industry.”

CentralNic Group PLC, the domain name platform operator, said organic growth had accelerated during the nine months to 30 September 2021 and now was 29% ahead of the comparable period in 2020.

As a result, total group revenue (including acquisitions) over the nine months will be at least US$280mln and underlying profit (adjusted EBITDA) at least US$32mln, making increases of at least 66% and 45% respectively.

CentralNic Group PLC (AIM:CNIC) announced it is buying a publishing network of revenue-generating websites for US$6.5mln in cash and assumed working capital liabilities from White & Case Ltd, in a deal that will provide more website traffic for its online marketing business.

The global internet platform company said the acquisition will be immediately earnings enhancing and will be financed from available liquidity. It is expected to complete around 1 October 2021.

Shares in the internet services specialist CentralNic Group PLC (AIM:CNIC) (LON:CNIC) are significantly undervalued, according to research from two investment banks very familiar with the industry and the company.

Berenberg said the stock trades on enterprise multiple (EV/EBITDA) of just nine times, yet peers in the domain name and ad-tech ‘spaces’ are on 23 times and 40 times respectively.

With this in mind and the fact that CentralNic generates a whopping 9% free cash flow yield, Berenberg reckons there is 110% “upside” for the stock from current levels.

CentralNic Group PLC (AIM:CNIC) (CentralNic Group PLC (AIM:CNIC)) Ben Crawford joins Proactive London’s Katie Pilbeam to talk about their results for 2021 which he says will be at the upper end of forecasts.

Results for the nine months to end-September were in line with an earlier trading statement with revenues a shade higher than predicted at US$282mln, up 67% and underlying profit 46% higher at US$32.3mln.

He says the first nine months of 2021 has been strong across both their online presence subscription products and the privacy enabled online marketing technologies.