Stockholm-listed industry affiliate marketing publisher Better Collective AB has declared a strong start to 2019 trading, as the company benefits from strong customer activity combined with organic efficiencies.
Publishing its Q1 2019 trading update (period ending 31 March), Better Collective records a 97% increase in corporate revenues to €14 million (Q12018: €7.5m).
During the quarter, Better Collective details that new-depositing-customers (NDC) reached a peak 116,000 (+116%) – a figure that ‘exceeded corporate expectations’.
Boosting its revenue performance, Better Collective details that it was able to ‘transfer NDCs’ on to revenue share contracts, which account for 72% of revenues (18% CPA – 10% other income).
“Growth in Q1 was strong compared to the same quarter last year,” said Better Collective AB Chief Executive, Jesper Søgaard. “We now see the effect of the strong NDC intake throughout 2018, which even accelerated further to record levels in the first quarter of 2019. Revenue almost doubled including a strong organic growth of 41% and operational earnings tripled compared to the same period in 2018.”
Furthermore, Better Collective has strengthened its affiliate network capacity with paid media and search campaigns, supporting the firm’s existing ‘organic acquisition channels’.
A period of high player activity would see Better Collective post a Q1 2019 EBIT of €6.5 million up 212% on corresponding 2018’s €2.1 million.
Closing a busy Q1 2019 opening, Better Collective declares operating profits of €3.6 million (Q12018: €1.2m), with corporate governance maintaining that it continues to monitor opportunities within new and developing markets.
“We continued to allocate significant resources to the development of new markets including the US, and we also opened new subsidiaries in UK and Poland to support our increased activities in those countries,” said Søgaard. “Furthermore, we continued to allocate significant resources to developing products and technologies.
“All this has increased our cost base and headcounts, however, managing the high growth is a priority, thus we continued to report strong earning-margins while growing and investing in the future at high pace.”