DGAP-News: CLIQ Digital AG proposes dividend of 28 cents per share to Annual General Meeting and adopts sustainable dividend policy

Corporate News

CLIQ Digital AG proposes dividend of 28 cents per share to Annual General Meeting and adopts sustainable dividend policy

- Proposal for a total dividend of 28 cents consisting of a basic dividend of 14 cents and an additional bonus dividend of 14 cents per CLIQ share to honor loyal shareholders

- Dividend payout ratio to be 40% of consolidated net income (after minority interests) in the coming fiscal years

Dusseldorf, June 25, 2020 -The Management Board and Supervisory Board of CLIQ Digital AG (ISIN DE000A0HHJR3, GSIN A0HHJR), a leading digital lifestyle company offering streaming entertainment services to consumers worldwide, have decided on the fundamental principles of the dividend policy. In each of the coming financial years, a total of 40% of consolidated net income (after minority interests) in accordance with IFRS is to be distributed to shareholders, provided the legal requirements for this are met.

Furthermore, the Management and Supervisory Board agreed to propose to the 2020 Annual General Meeting the payment of a bonus dividend to honor its loyal shareholders. Thus, the total amount of the dividend proposal, consisting of the basic dividend of 14 cents per share and a special distribution of 14 cents per share, amounts to 28 cents per share. This dividend (basic dividend and bonus dividend) corresponds to a dividend yield of 4.7% based on the closing price of EUR 6.00 of CLIQ Digital shares on June 22, 2020, if approved by the Annual Shareholders' Meeting. The initial resolution on the appropriation of profits, which was adopted on 31 March 2020 in connection with the preparation of the annual financial statements for the 2019 financial year and provided for the balance sheet profit to be carried forward in full, was amended accordingly. Dividend payments are planned for the coming financial years in accordance with the new dividend policy.

CLIQ Digital wants its shareholders to benefit from the company's success with a sustainable dividend policy and to increase the share's attractiveness for a larger group of investors. Over the past six years, the company has succeeded in significantly increasing its profitability with a compound annual growth rate of 30% (CAGR) on net income and by generating positive cash flows.

CLIQ Digital has positioned and differentiated itself as an all-in-one streaming service provider in the streaming entertainment sector, in order to continue its growth path. The market research company Goldmedia, for example, expects revenues from streaming services to reach EUR 4.3 billion alone in Germany this year. By 2024, the volume is expected to increase to EUR 6.5 billion. Compared to 2019, this would correspond to a growth of more than 80% in terms of revenue, at EUR 3.6 billion. Also in the area of gaming for mobile devices, experts are expecting continued positive development. The research Institute Newszoo expects the volume of the gaming market to increase at an average annual growth rate of 8.3% by 2023.

CLIQ Digital, with its membership based streaming entertainment services as well as its longstanding expertise in the games sector, is ideally positioned to benefit from the dynamic development of the market. Established research houses and banks confirm CLIQ Digital's positive development and expect profitable company growth for the future. CLIQ's membership based streaming model has the potential to generate sustainable cash flows. This is the basis for a more visible and scalable business model.

"It makes us very happy and proud to be able to share the company's success with our shareholders with a dividend after more than ten years. We have now laid the foundations for a dividend policy that meets our shareholders' wishes for an appropriate participation without putting at risk our ability to finance our growth targets. Together with our expanded business model, we are increasing the attractiveness for capital market participants and, at the same time, enabling us to continue our growth in the promising streaming entertainment market," says Ben Bos, member of the Management Board.

Furthermore, the Management Board and the Supervisory Board passed a resolution on the convening of the Annual General Meeting on 21 August 2020 in Düsseldorf. The Annual General Meeting is to be held as a physical meeting. However, this is subject to the proviso that the development of the COVID-19 infections allows a corresponding physical meeting at that time. The dividend is expected to be paid out on 26 August 2020, if the General Meeting adopts the resolution on the appropriation of profits as proposed.
 

About CLIQ Digital:
CLIQ Digital (www.cliqdigital.com) is a leading digital lifestyle company, providing consumers worldwide with streaming entertainment services. Members get unlimited access to music, audiobooks, games, sports and movie content. The core business of the Group is the online direct marketing of its streaming entertainment services to consumers globally. In 2019 CLIQ Digital realized over 90% of its sales in Europe and North America. CLIQ Digital's headquarter is based in Dusseldorf and has offices in Amsterdam, London, Paris, Barcelona and Tequesta, Florida. The Group, employs approximately 100 staff and is listed in the Scale (30) segment at the Frankfurt Stock Exchange (ISIN DE000A0HHJR3).

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