Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cliq Digital AG (XTER:CLIQ, Financial) improved its net cash position to €14 million due to positive cash flow.
- The company achieved cost efficiencies by downsizing selling, general, and administrative expenses.
- Cliq Digital AG (XTER:CLIQ) expanded its content library with new licensing agreements, including sports channels and telenovelas.
- The company introduced new sales channels and digital products, aiming to enhance productivity.
- Cliq Digital AG (XTER:CLIQ) maintained a stable EBITDA margin of over 7% through strict cost management.
Negative Points
- Cliq Digital AG (XTER:CLIQ) experienced a 30% drop in its customer base and a 32% decrease in sales year-on-year.
- The company's EBITDA before special items fell by 31% compared to the previous year's first quarter.
- Cliq Digital AG (XTER:CLIQ) is considering a potential delisting from stock exchanges, which could impact shareholder value.
- The transformation program 'Fit for the Future' has not yet delivered significant growth, with productivity gains remaining elusive.
- High churn rates and a 40% decrease in the expected average customer lifetime value were reported, reflecting challenging market conditions.
Q & A Highlights
Q: The decision to delist the company follows a significant share price decline from approximately €35 to around €5. How does the company view this outcome in the context of its responsibility toward protecting shareholder value?
A: (CEO, Luke Vonn) No decision has been made yet regarding delisting. We view our responsibility to shareholders through long-term value creation. The market valuation decline reflects a disconnect between our business fundamentals and market perception. Delisting is part of a broader strategic review to reduce short-term pressures and focus on sustainable long-term initiatives.
Q: How does Click Digital assess and manage potential conflicts of interest with board members involved with Dylan Media?
A: (CEO, Luke Vonn) Under German corporate law and our compliance framework, we are bound by fiduciary duties to act in the best interest of the company and stakeholders. In case of conflicts, the supervisory board ensures actions align with legal requirements and the company's long-term interests.
Q: If Click Digital is delisted, shareholders face selling at a loss or remaining invested in an illiquid company. Who benefits from delisting?
A: (CFO, Ben Boss) The decision to explore delisting is driven by low demand for shares and the costs of being publicly listed. Delisting could enhance operational flexibility and decision-making without short-term market pressures. No decision has been made yet.
Q: Why consider selling to Dylan Media if the transformation program is expected to deliver positive results?
A: (CEO, Luke Vonn) We haven't given up on the transformation program, which is now embedded in our company's DNA. We are experimenting with new sales channels and products to improve productivity and sales growth. The potential sale to Dylan Media depends on circumstances outside our influence.
Q: Is the business model with streaming offers still sustainable given the revenue and earnings decline?
A: (CEO, Luke Vonn) We believe in our core business model and its sustainability. The transformation program has refreshed our business model, but positive effects are taking longer than expected. We need to grow sales and protect margins, and we see a bright future with new sales channels and products.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
