Stockholm-listed industry affiliate marketing network, Catena Media Plc remains positive on its 2019 outlook, detailing that it has undertaken the necessary adjustments to meet new regulatory conditions within its home market of Sweden.
Publishing its Q1 2019 trading update, Catena records a revenue increase of 9% to €26 million (Q12018: 24m). Despite growth, the figure is ‘below the expectations’ of Catena governance.
Catena details that it is ‘rebounding from Swedish regulatory effects’, as new restrictions on operators and players impacted the capacity of Catena’s affiliate network during Q1 trading.
In its update, Catena records that period ‘new-depositing-customers (NDCs)’ totalled 124,007 (133,322), representing a -7% decrease.
Despite the adjustments, an ‘agile’ Catena details that operational efficiencies have maintained a positive earnings momentum, with the company reporting a period 8% EBITDA increase to €11.2 million (Q12018: €10.4m).
Catena Chief Executive Per Hellberg, states that following adjustments ‘Catena is building for take-off in the second half of the year’.
“Everything we are doing is now converging in the right direction. We are continuing our long-term transformation, based on the strategies of organic growth, fewer but larger brands and increased cost control. During the first quarter, which also tend to start a bit slower due to seasonal effects, we saw that regulations impacted operators negatively, and us in turn, leading to a quarter where our revenues came in below our expectations. We are agilely adapting to changing conditions and expect to see positive developments from the second quarter onwards.”