Buy Or Sell Opportunity • 10h
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to UK£0.34. The fair value is estimated to be UK£0.44, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 27% in a year. Earnings are forecast to grow by 87% in the next year. Announcement • Jun 01
Team Internet Group plc to Report Fiscal Year 2025 Results on Jun 15, 2026 Team Internet Group plc announced that they will report fiscal year 2025 results at 8:00 AM, GMT Standard Time on Jun 15, 2026 Buy Or Sell Opportunity • May 06
Now 22% overvalued Over the last 90 days, the stock has fallen 28% to UK£0.36. The fair value is estimated to be UK£0.30, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 26% in a year. Earnings are forecast to grow by 88% in the next year. Buy Or Sell Opportunity • Mar 19
Now 20% overvalued Over the last 90 days, the stock has fallen 20% to UK£0.39. The fair value is estimated to be UK£0.32, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last 3 years. Meanwhile, the company became loss making. Revenue is forecast to decline by 26% in a year. Earnings are forecast to grow by 88% in the next year. Board Change • Feb 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 2 highly experienced directors. Independent Non-Executive Director Marie Juliette Holive was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Jan 20
Team Internet Group plc Provides Group Earnings Guidance for the Fiscal Year 2025 Team Internet Group plc provided group earnings guidance for the fiscal year 2025. For the year, the Group now expects net revenue towards the top end of the range of current analyst forecasts. Analyst consensus of net revenue for the financial year ending 31 December 2025 as of 19 January 2026 is USD 126 million (analyst range of USD 113 million and USD 134 million). New Risk • Nov 14
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next 2 years. Trailing 12-month net loss: US$42m Forecast net loss in 2 years: US$6.0m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (US$6.0m net loss in 2 years). Share price has been volatile over the past 3 months (8.0% average weekly change). New Risk • Sep 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Sep 01
First half 2025 earnings released: US$0.058 loss per share (vs US$0.038 profit in 1H 2024) First half 2025 results: US$0.058 loss per share (down from US$0.038 profit in 1H 2024). Revenue: US$263.9m (down 36% from 1H 2024). Net loss: US$14.1m (down 244% from profit in 1H 2024). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, while revenues in the Media industry in the United Kingdom are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Announcement • Aug 11
Team Internet Group plc to Report First Half, 2025 Results on Sep 01, 2025 Team Internet Group plc announced that they will report first half, 2025 results on Sep 01, 2025 Price Target Changed • Jun 04
Price target decreased by 16% to UK£1.90 Down from UK£2.25, the current price target is an average from 2 analysts. New target price is 192% above last closing price of UK£0.65. The company is forecast to post earnings per share of US$0.043 next year compared to a net loss per share of US$0.07 last year. Announcement • Mar 31
Team Internet Group plc, Annual General Meeting, Apr 28, 2025 Team Internet Group plc, Annual General Meeting, Apr 28, 2025. Location: the companys registered office, 4th floor, saddlers house, 44 gutter lane, ecv 6br, london United Kingdom Announcement • Mar 15
Team Internet Group plc to Report Fiscal Year 2024 Results on Mar 24, 2025 Team Internet Group plc announced that they will report fiscal year 2024 results on Mar 24, 2025 Announcement • Mar 06
Verdane Fund Manager AB cancelled the acquisition of Internet Group plc (AIM:TIG) from Slater Investments Limited and others. Verdane Fund Manager AB made a proposal to acquire Team Internet Group plc (AIM:TIG) from Slater Investments Limited and others for approximately £320 million on January 7, 2025. In a related transaction, Team Internet Group plc also received a proposal from TowerBrook Capital Partners (U.K.) LLP on January 7, 2025. Under the terms of offer, each proposal is for £1.25 per Team Internet share in cash with an option for Team Internet shareholders to elect for an unlisted equity alternative in respect of Team Internet shares. The two proposals follow earlier approaches from each of the respective offerors, both of which were rejected by the Board as undervaluing the Company and its future prospects. The Board is currently considering both approaches with its advisers, including limited interaction with the Potential Offerors, and will make further announcements in due course as appropriate.
The proposal is subject to satisfaction or waiver of a number of pre-conditions, including completion of satisfactory due diligence, finalization of financing and definitive transaction documentation. There can be no certainty that any firm offer will be made, nor as to the terms on which such offer might be made.
Christopher Fincken, Andrew Owens and Alina Vaskina of HSBC Bank plc and Nick Cowles, James Edis and Dominic King of Zeus Capital Limited acted as financial advisor to Team Internet Group plc.
Verdane Fund Manager AB cancelled the acquisition of Internet Group plc (AIM:TIG) from Slater Investments Limited and others for on March 4, 2025. New Risk • Mar 04
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 11% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (3.0x net interest cover). Share price has been highly volatile over the past 3 months (11% average weekly change). Earnings are forecast to decline by an average of 11% per year for the foreseeable future. Announcement • Jan 09
TowerBrook Capital Partners (U.K.) LLP proposed to acquire Team Internet Group plc (AIM:TIG) from Slater Investments Ltd and others for approximately £320 million. TowerBrook Capital Partners (U.K.) LLP proposed to acquire Team Internet Group plc (AIM:TIG) from Slater Investments Ltd and others for approximately £320 million on January 7, 2025. A cash consideration valued at £1.25 per share will be paid by TowerBrook Capital Partners. In related transaction, Verdane Fund Manager AB made a proposal to acquire Team Internet Group. Each proposal is for £1.25 per Team Internet share in cash with an option for Team Internet shareholders to elect for an unlisted equity alternative in respect of Team Internet shares. The two proposals follow earlier approaches from each of the respective offerors, both of which were rejected by the Board as undervaluing the Company and its future prospects. The Board is currently considering both approaches with its advisers, including limited interaction with the Potential Offerors, and will make further announcements in due course as appropriate.
Both proposals are subject to satisfaction or waiver of a number of pre-conditions, including completion of satisfactory due diligence, finalization of financing and definitive transaction documentation. TowerBrook and Verdane have until February 4, 2025 to announce a firm intention to make an offer, or to announce that they do not intend to make an offer. This deadline will only be extended with the consent of the Takeover Panel.
Christopher Fincken and Andrew Owens of HSBC Bank plc acted as Financial Adviser and Nick Cowles and James Edis of Zeus Capital Limited acted as nomad advisor to Team Internet Group. Announcement • Jan 08
Verdane Fund Manager AB made a proposal to acquire Team Internet Group plc (AIM:TIG) from Slater Investments Limited and others for approximately £320 million. Verdane Fund Manager AB made a proposal to acquire Team Internet Group plc (AIM:TIG) from Slater Investments Limited and others for approximately £320 million on January 7, 2025. In a related transaction, Team Internet Group plc also received a proposal from TowerBrook Capital Partners (U.K.) LLP on January 7, 2025. Under the terms of offer, each proposal is for £1.25 per Team Internet share in cash with an option for Team Internet shareholders to elect for an unlisted equity alternative in respect of Team Internet shares. The two proposals follow earlier approaches from each of the respective offerors, both of which were rejected by the Board as undervaluing the Company and its future prospects. The Board is currently considering both approaches with its advisers, including limited interaction with the Potential Offerors, and will make further announcements in due course as appropriate.
The proposal is subject to satisfaction or waiver of a number of pre-conditions, including completion of satisfactory due diligence, finalisation of financing and definitive transaction documentation. There can be no certainty that any firm offer will be made, nor as to the terms on which such offer might be made.
Christopher Fincken, Andrew Owens and Alina Vaskina of HSBC Bank plc and Nick Cowles, James Edis and Dominic King of Zeus Capital Limited acted as financial advisor to Team Internet Group plc. New Risk • Jan 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of British stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (3.0x net interest cover). Share price has been highly volatile over the past 3 months (10% average weekly change). Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to UK£1.18, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 14x in the Media industry in the United Kingdom. Total loss to shareholders of 1.6% over the past three years. Major Estimate Revision • Nov 18
Consensus EPS estimates fall by 22% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$930.2m to US$851.7m. EPS estimate also fell from US$0.109 per share to US$0.085 per share. Net income forecast to shrink 1.7% next year vs 1.7% decline forecast for Media industry in the United Kingdom. Consensus price target down from UK£2.62 to UK£1.97. Share price fell 3.9% to UK£0.84 over the past week. Reported Earnings • Nov 12
Third quarter 2024 earnings released: EPS: US$0.008 (vs US$0.017 in 3Q 2023) Third quarter 2024 results: EPS: US$0.008 (down from US$0.017 in 3Q 2023). Revenue: US$205.4m (down 4.6% from 3Q 2023). Net income: US$2.10m (down 52% from 3Q 2023). Profit margin: 1.0% (down from 2.0% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 1.2% growth forecast for the Media industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. New Risk • Nov 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.5% per year for the foreseeable future. Minor Risks High level of debt (78% net debt to equity). Share price has been volatile over the past 3 months (6.9% average weekly change). Price Target Changed • Nov 11
Price target decreased by 13% to UK£2.22 Down from UK£2.55, the current price target is an average from 3 analysts. New target price is 155% above last closing price of UK£0.87. Stock is down 25% over the past year. The company is forecast to post earnings per share of US$0.092 for next year compared to US$0.089 last year. Announcement • Oct 21
Team Internet Group plc to Report Q3, 2024 Results on Nov 11, 2024 Team Internet Group plc announced that they will report Q3, 2024 results on Nov 11, 2024 Price Target Changed • Aug 30
Price target increased by 12% to UK£2.85 Up from UK£2.55, the current price target is an average from 2 analysts. New target price is 112% above last closing price of UK£1.34. Stock is up 9.1% over the past year. The company is forecast to post earnings per share of US$0.096 for next year compared to US$0.089 last year. Upcoming Dividend • Aug 22
Upcoming dividend of UK£0.01 per share Eligible shareholders must have bought the stock before 29 August 2024. Payment date: 04 October 2024. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of British dividend payers (5.5%). Lower than average of industry peers (3.6%). Announcement • Aug 19
Team Internet Group plc Declares Interim Dividend, Payable on October 4, 2024 Team Internet declares an interim dividend of 1.0 pence per share. The dividend will be payable on 4 October 2024 for shareholders on the Company's register of members at close of business on 30 August 2024. Reported Earnings • Aug 13
Second quarter 2024 earnings released: EPS: US$0.02 (vs US$0.023 in 2Q 2023) Second quarter 2024 results: EPS: US$0.02 (down from US$0.023 in 2Q 2023). Revenue: US$213.8m (up 6.1% from 2Q 2023). Net income: US$5.10m (down 22% from 2Q 2023). Profit margin: 2.4% (down from 3.2% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 2.2% growth forecast for the Media industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. New Risk • Aug 13
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (57% net debt to equity). Share price has been volatile over the past 3 months (7.7% average weekly change). Announcement • Jul 23
Team Internet Group plc to Report First Half, 2024 Results on Aug 12, 2024 Team Internet Group plc announced that they will report first half, 2024 results on Aug 12, 2024 Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to UK£1.82, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 18x in the Media industry in the United Kingdom. Total returns to shareholders of 122% over the past three years. Major Estimate Revision • May 20
Consensus EPS estimates increase by 17% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$885.8m to US$951.0m. EPS estimate increased from US$0.077 to US$0.091 per share. Net income forecast to shrink 0.5% next year vs 2.9% growth forecast for Media industry in the United Kingdom . Consensus price target up from UK£2.48 to UK£2.55. Share price rose 11% to UK£1.72 over the past week. Announcement • May 15
Team Internet Group plc Provides Earnings Guidance for the Year 2024 Team Internet Group plc provided earnings guidance for the year 2024. For the year, the company expects earnings growth over top-line growth, whilst maintaining a robust 8% organic revenue growth on a pro forma basis for TTM 2024. New Risk • May 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.4% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.4% per year for the foreseeable future. Minor Risk High level of debt (57% net debt to equity). Reported Earnings • May 14
First quarter 2024 earnings released: EPS: US$0.019 (vs US$0.011 in 1Q 2023) First quarter 2024 results: EPS: US$0.019 (up from US$0.011 in 1Q 2023). Revenue: US$195.9m (flat on 1Q 2023). Net income: US$4.70m (up 62% from 1Q 2023). Profit margin: 2.4% (up from 1.5% in 1Q 2023). Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Media industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Apr 30
Team Internet Group plc (AIM:TIG) completed the acquisition of Shinez I.O. Ltd for $55.5 million. Team Internet Group plc (AIM:TIG) agreed to acquire Shinez I.O. Ltd for $54.10 million on March 19, 2024. Team Internet will acquire Shinez for an enterprise value of $41.8 million, on a net debt free basis and subject to customary adjustments for net working capital, payable in cash. Additional contingent consideration of up to $12.3 million will be due subject to Shinez achieving ambitious financial targets over the next two years, payable in cash. Shinez reported $111 million in gross revenue $17.2 million in net revenue, and $10.4 million in adjusted EBITDA for the year ending December 31, 2023. The acquisition will be funded through a combination of cash reserves and the Revolving Credit Facility Agreement. $4.6 million, i.e., 11% of the enterprise value, will be retained in escrow for four years to cover for customary warranties and indemnification. A graduated release schedule is planned for the escrow: up to 50% will be released on the second anniversary of the transaction's completion, followed by releases of up to 25% each on the third and fourth anniversaries. The acquisition is expected to be completed by late April/early May 2024, with all closing conditions anticipated to be satisfied, with the first full consolidation in Q3 2024. Zeus acted as advisor to Team Internet.
Team Internet Group plc (AIM:TIG) completed the acquisition of Shinez I.O. Ltd for $55.5 million on April 29, 2024. Shinez has been acquired for an enterprise value of $43.2 million, inclusive of customary adjustments for cash and working capital with an initial consideration of $38.9 million and $4.3 million retained in escrow to cover for customary warranties and indemnification. Contingent additional consideration of up to $12.3 million may become due subject to Shinez achieving ambitious financial targets over the next two years, payable in cash. Upcoming Dividend • Apr 18
Upcoming dividend of UK£0.02 per share Eligible shareholders must have bought the stock before 25 April 2024. Payment date: 28 May 2024. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of British dividend payers (6.1%). Lower than average of industry peers (3.6%). Announcement • Mar 20
Team Internet Group plc (AIM:TIG) agreed to acquire Shinez I.O. Ltd for $54.10 million. Team Internet Group plc (AIM:TIG) agreed to acquire Shinez I.O. Ltd for $54.10 million on March 19, 2024. Team Internet will acquire Shinez for an enterprise value of $41.8 million, on a net debt free basis and subject to customary adjustments for net working capital, payable in cash. Additional contingent consideration of up to $12.3 million will be due subject to Shinez achieving ambitious financial targets over the next two years, payable in cash. Shinez reported $111 million in gross revenue $17.2 million in net revenue, and $10.4 million in adjusted EBITDA for the year ending December 31, 2023. The acquisition will be funded through a combination of cash reserves and the Revolving Credit Facility Agreement. $4.6 million, i.e., 11% of the enterprise value, will be retained in escrow for four years to cover for customary warranties and indemnification. A graduated release schedule is planned for the escrow: up to 50% will be released on the second anniversary of the transaction's completion, followed by releases of up to 25% each on the third and fourth anniversaries. The acquisition is expected to be completed by late April/early May 2024, with all closing conditions anticipated to be satisfied, with the first full consolidation in Q3 2024. Declared Dividend • Mar 20
Dividend increased to UK£0.02 Dividend of UK£0.02 is 100% higher than last year. Ex-date: 25th April 2024 Payment date: 28th May 2024 Dividend yield will be 1.5%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (10% cash payout ratio). The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. EPS is expected to grow by 4.5% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Mar 19
Team Internet Group plc Proposes Final Dividend, Payable on 28 May 2024 Team Internet Group plc is proposing a final dividend of 2.0 pence per share to be approved at the AGM as the next step in the group's plan to return cash to shareholders. The dividend will be payable on 28 May 2024 for shareholders on the company's register of members at close of business on 26 April 2024. Reported Earnings • Mar 19
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: US$0.089 (up from US$0.008 loss in FY 2022). Revenue: US$836.9m (up 15% from FY 2022). Net income: US$24.3m (up US$26.4m from FY 2022). Profit margin: 2.9% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 92%. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Media industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 109% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Jan 30
Consensus EPS estimates fall by 23% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$840.4m to US$831.8m. EPS estimate also fell from US$0.058 per share to US$0.045 per share. Net income forecast to grow 254% next year vs 16% growth forecast for Media industry in the United Kingdom. Consensus price target of UK£2.47 unchanged from last update. Share price rose 6.1% to UK£1.33 over the past week. Announcement • Jan 29
Team Internet Group plc Provides Earnings Guidance for the Year 2023 Team Internet Group plc provided earnings guidance for the year 2023. The Company now expects to report record gross revenue of c. USD 835 million, net revenue (gross profit) of c. USD 190 million for the financial year 2023. Announcement • Jan 08
Team Internet Group plc to Report Fiscal Year 2023 Results on Mar 18, 2024 Team Internet Group plc announced that they will report fiscal year 2023 results on Mar 18, 2024 Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: US$0.017 (vs US$0.002 loss in 3Q 2022) Third quarter 2023 results: EPS: US$0.017 (up from US$0.002 loss in 3Q 2022). Revenue: US$215.3m (up 12% from 3Q 2022). Net income: US$4.40m (up US$4.80m from 3Q 2022). Profit margin: 2.0% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 88% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Announcement • Oct 11
CentralNic Group Plc to Report Nine Months, 2023 Results on Nov 13, 2023 CentralNic Group Plc announced that they will report nine months, 2023 results on Nov 13, 2023 New Risk • Aug 15
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.3x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.3x net interest cover). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.05% net profit margin). Reported Earnings • Aug 15
Second quarter 2023 earnings released: EPS: US$0.023 (vs US$0.011 in 2Q 2022) Second quarter 2023 results: EPS: US$0.023 (up from US$0.011 in 2Q 2022). Revenue: US$201.5m (up 13% from 2Q 2022). Net income: US$6.50m (up 124% from 2Q 2022). Profit margin: 3.2% (up from 1.6% in 2Q 2022). Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. New Risk • Jul 23
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 6.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. This is currently the only risk that has been identified for the company. Reported Earnings • May 16
First quarter 2023 earnings released: EPS: US$0.011 (vs US$0.015 in 1Q 2022) First quarter 2023 results: EPS: US$0.011 (down from US$0.015 in 1Q 2022). Revenue: US$194.9m (up 25% from 1Q 2022). Net income: US$2.90m (down 28% from 1Q 2022). Profit margin: 1.5% (down from 2.6% in 1Q 2022). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Price Target Changed • May 02
Price target decreased by 10% to UK£2.60 Down from UK£2.90, the current price target is an average from 3 analysts. New target price is 119% above last closing price of UK£1.19. Stock is down 13% over the past year. The company is forecast to post earnings per share of US$0.083 next year compared to a net loss per share of US$0.0078 last year. Reported Earnings • Mar 29
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: US$0.008 loss per share (improved from US$0.016 loss in FY 2021). Revenue: US$728.2m (up 77% from FY 2021). Net loss: US$2.08m (loss narrowed 41% from FY 2021). Revenue exceeded analyst estimates by 2.5%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 28
Full year 2022 earnings released: US$0.008 loss per share (vs US$0.016 loss in FY 2021) Full year 2022 results: US$0.008 loss per share (improved from US$0.016 loss in FY 2021). Revenue: US$728.2m (up 77% from FY 2021). Net loss: US$2.08m (loss narrowed 41% from FY 2021). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 20% per year, which means it is significantly lagging earnings growth. Announcement • Jan 30
CentralNic Group Plc to Report Fiscal Year 2022 Results on Feb 27, 2023 CentralNic Group Plc announced that they will report fiscal year 2022 results on Feb 27, 2023 Reported Earnings • Nov 23
Third quarter 2022 earnings released: US$0.002 loss per share (vs US$0.009 loss in 3Q 2021) Third quarter 2022 results: US$0.002 loss per share (improved from US$0.009 loss in 3Q 2021). Revenue: US$192.1m (up 80% from 3Q 2021). Net loss: US$400.0k (loss narrowed 82% from 3Q 2021). Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 62% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 6 non-independent directors. Independent Non-Executive Chairman Iain McDonald was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Major Estimate Revision • Oct 18
Consensus revenue estimates increase by 14% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from US$612.9m to US$698.4m. EPS estimate increased from US$0.04 to US$0.06 per share. Net income forecast to grow 311% next year vs 23% growth forecast for IT industry in the United Kingdom. Consensus price target of UK£3.00 unchanged from last update. Share price rose 11% to UK£1.32 over the past week. Major Estimate Revision • Sep 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$0.05 to US$0.04 per share. Revenue forecast steady at US$622.7m. Net income forecast to grow 256% next year vs 27% growth forecast for IT industry in the United Kingdom. Consensus price target of UK£3.00 unchanged from last update. Share price rose 5.6% to UK£1.23 over the past week. Reported Earnings • Sep 03
Second quarter 2022 earnings released: EPS: US$0.011 (vs US$0.007 loss in 2Q 2021) Second quarter 2022 results: EPS: US$0.011 (up from US$0.007 loss in 2Q 2021). Revenue: US$178.0m (up 99% from 2Q 2021). Net income: US$2.90m (up US$4.60m from 2Q 2021). Profit margin: 1.6% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Over the next year, revenue is forecast to grow 15%, compared to a 17% growth forecast for the IT industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 31% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 31
Consensus EPS estimates increase by 51% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$591.4m to US$617.8m. EPS estimate increased from US$0.03 to US$0.04 per share. Net income forecast to grow 1,062% next year vs 28% growth forecast for IT industry in the United Kingdom. Consensus price target of UK£3.00 unchanged from last update. Share price was steady at UK£1.18 over the past week. Major Estimate Revision • Jul 19
Consensus EPS estimates increase by 29% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$559.1m to US$606.0m. EPS estimate increased from US$0.02 to US$0.03 per share. Net income forecast to grow 953% next year vs 27% growth forecast for IT industry in the United Kingdom. Consensus price target of UK£3.00 unchanged from last update. Share price rose 16% to UK£1.30 over the past week. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Chairman Iain McDonald was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 07
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: US$0.016 loss per share (up from US$0.055 loss in FY 2020). Revenue: US$410.5m (up 71% from FY 2020). Net loss: US$3.54m (loss narrowed 67% from FY 2020). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 24%. Over the next year, revenue is forecast to grow 25%, compared to a 16% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 01
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: US$0.016 loss per share (up from US$0.043 loss in FY 2020). Revenue: US$410.5m (up 70% from FY 2020). Net loss: US$3.54m (loss narrowed 58% from FY 2020). Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 24%. Over the next year, revenue is forecast to grow 18%, compared to a 18% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 43% per year, which means it is tracking significantly ahead of earnings growth.