Erik Ahlberg, CEO of Blick Global Group AB, talks about the company's strong Q4 results with 160% growth and higher profit margins. Erik shares the company's annual growth targets to be achieved through expansion, increased profitability and a continued clear pipeline for more acquisitions.
Today you reported figures for Q4. You showed a growth of 160% and 13% higher profit margins compared to the same period last year. Are you satisfied with this milestone and can we expect figures on par with these in the coming quarters?
It means a lot to us to be able to grow organically with a positive EBITDA margin. We are building the group to give the individual businesses the best conditions for strong growth. In our scanning of potential acquisitions, scalability is of utmost importance. We have an ambition to grow at the group level by 30% year-on-year with a profit margin of 20%. We are now quite well on track towards those goals. The results in Q4 show a second consecutive quarter of profitable growth. It also means in concrete terms for us that we are strengthening our cash position to continue financing the growth and development of each business.
What opportunities do you see for developing Blick Global and making the company an established name in the Ad-tech sector?
We have all the conditions to succeed. The more customers who use our platform and the expertise within Wiget Group, the faster we will be able to establish ourselves as a natural choice for implementing campaigns with greater precision.
What will you mainly focus on in 2023?
In 2023, all focus is on reaching out properly with each business and developing ourselves into the cash cow we have the potential to be. We will reach profit levels that mean that we can reinvest in our markets and new markets at an increasingly rapid pace and thereby take the next step in size and profitability. In addition, we continue to work to find complementary acquisitions or completely new business areas.
Blick has had a tough time on the stock market in the past year. How will you manage to turn things around again?
It has of course been a generally difficult year on the stock market, but we believe that stable growth and good profitability will provide a fair valuation and that is how the group wants to build on the stock market.
There are probably many who are also waiting to see us continue to deliver good results quarter after quarter and that is entirely reasonable. We have seen great interest in Blick as a group and a positive expectation from both the stock market as well as customers and potential acquisition candidates.
You currently have 3 acquisitions in the pipeline. Do you expect to acquire any companies in 2023, which industries are you primarily looking at?
We are definitely continuing our work to find more acquisitions. There are many interesting opportunities. Businesses that can complement current businesses and thereby develop our existing businesses. We have also identified potential new business areas that would further strengthen our position with the gaming companies.
You have previously said that the World Cup has given the company momentum to build on. Can you elaborate on this reasoning and how the company can maintain and gain new market share even after the World Cup?
During major global events such as the World Cup or the Super Bowl, there is great interest in digital marketing and customer acquisition. This gives us the opportunity to increase the number of customers who test us and we get the opportunity to prove results through a generally lower acquisition cost than other methods offer. This in itself is perfect conditions for us as relatively small global players to have the chance to prove ourselves. Between events or in the period after.
What is the long-term plan for Blick Global Group, where do you see the company in 5-10 years?
In addition to seeing a financially strong company with continued profitable growth that has led to a billion-dollar valuation, I see that we have patented solutions within one of our verticals. It could be in customer acquisition and marketing or one of the other business areas we are active in. We will attract the best talent in different technology areas. Quite simply, a Unicorn.
How important a component is the Game Studio for the company?
The game studio is as important as any of the other businesses. Financially, it is currently not as important to the group's results, but it certainly has great potential.
The studio is small but has already managed to win a contract with one of the largest American players in online games. It is commendable but just the beginning. The potential in a game studio is fantastic and OMI really has a great opportunity even in the relatively short perspective, 2 years to be able to get a decent return on their games. I really think the development here looks exciting.
What markets do you currently operate in? How do you see the opportunities to enter new geographic markets such as Asia?
The online gaming market is truly global and through our acquisitions we have ensured that we can compete in all geographical markets. We go where our existing and new customers invest. This of course means that today we have markets that we focus on more than others but that is changing quickly and the geographical map can look very different in just six months.
The important thing for us and our customers is that we can help reach all markets in an optimal way with the greatest possible impact. There are changes in individual markets that make them more interesting than others. The US, Asia and perhaps even some African states will account for a larger part of our growth than they do today where more comes from Europe and South and North America.
Shareholders are wondering what makes this moment different from before when you have talked about the company being cash flow positive and profitable.
The single biggest difference is that we now have two businesses that generate positive cash flow. This gives us the space to develop our business faster and finance continued growth while building cash.
Thanks to Blick Global Group and Erik Ahlberg for the interview. We wish the company the best of luck going forward.
Disclaimer: This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview. // This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic own no shares in the company at the time of the interview.
