Q4 2022p revenues were up 77% yoy and came in roughly 7.5% ahead of expectations at € 83m. FY 2022p revenues of € 276m came in some 2% better than expected, 84% yoy and clearly at the upper end of the > € 250m sales guidance. Sales growth was strong across all regions. Although the number of memberships of 1.9m came a tad shy of the 2m expected, the value of the customer base registered strong growth yoy at € 144m, providing a solid base for revenue growth into FY 2023e.

Q4 2022p EBITDA/EBITDA margin came in at € 13m/16% respectively, some 18%/2 pts better than expected and indicating strong cost discipline in a context where the company is maintaining a high level of marketing spend. FY 2022p EBITDA came in at € 44m, up 63% yoy while the margin was 2.1 pts lower yoy (but 1 pt better than expected) due to a strong increase in marketing spend at € 112m, more than doubling yoy and 12% higher than anticipated.

The company deliberately chose to accelerate marketing spend on the back of a broader content and strong demand dynamics around its value-for-money streaming entertainment bundles, in times where consumers are reigning in spending while the large mainstream streaming providers are strongly increasing prices.

The 6M-Profitability Index, measuring the profitability of customer acquisition, came in 0.7 pts behind expectations and 0.6 pts behind the guided 1.51x due to higher marketing spend.

The cash position at the end of FY 2022 is bang in line with expectations at € 10m. A FY 2023e guidance was released pointing to revenues in excess of € 345m (eNuW € 345m), EBITDA in excess of € 50m and marketing spend in excess of € 120m (eNuW € 100m).

The release confirms our positive stance on this online advertising expert focused on entertainment streaming services. BUY, PT € 70 on FCFY 22e and 23e. The model will be updated following the release of audited full year results on February 21^st.

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