Business
CentralNic Group (CNIC): A scaling player in on...
CentralNic Group (CNIC): A scaling player in on....
About this update from Team Internet Group Plc
[{"type":"text","content":"\n \n\n\nEdison Investment Research Limited\n\n\n\nCentralNic Group (CNIC): A scaling player in online services23-Nov-2021 / 07:00 GMT/BST\n\n\n \n\nLondon, UK, 23 November 2021\n\n \n\nCentralNic Group (CNIC): A scaling player in online services\n\nCentralNic provides domain name services and online marketing, focused on consolidating a highly fragmented global market. It offers a broad range of internet services, including reseller services, to corporates and SMEs (Online Presence), as well as monetisation services (Online Marketing) to domain investors. The group strategy is to benefit from structural market growth, building its two segments and diversifying the group's revenues through cross-selling and upselling services. CentralNic has achieved a five-year revenue CAGR to FY20 of 78%. The company is valued on an FY21 EV/EBITDA multiple of 12.6x and a P/E of 17.4x, a material discount to its peer group, with our DCF underlining the discount to fair value. We would expect future M&A to bring CentralNic's multiples down further.\n\n \n\nBased on Edison's estimated 59% sales growth in FY21 (estimates raised with the Q321 trading update), CentralNic offers some of the strongest growth among its peers, yet trades on an FY21 P/E multiple of 17.4x and 16.5x for FY22e. Whether we compare CentralNic to web services or online marketing, the shares continue to trade at a material discount to its global peers, with our NPV analysis underlining the significant discount to theoretical fair value. \n\nClick here to view the full report or here to sign up to receive research as it is published. \n\n \n\nAll reports published by Edison are available to download free of charge from its website\n\nwww.edisongroup.com\n\nAbout Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. \n\nHaving been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison al...