Catena points towards ‘organic discipline’ leading future growth

Per Hellberg – Catena Media

Stockholm-listed industry affiliate marketing network Catena Media has this morning published its full-year 2018 results (12-month period ending 31 January), citing strong progress on its2020 Vision’ corporate guidance strategy.

Catena assets closed year-end trading strongly, reporting Q4 2018 increased revenues of €27 million (Q4 2017: €20m), supporting a 17% EBITDA increase of €12 million (Q4 2017: €10m).

Updating investors, Per Hellberg Catena Media Chief Executive, underlines that corporate performance has been led by the company ‘transitioning away from its M&A strategy’ to focusing on organic growth disciplines launched across its multi-market verticals.

“Ask Gamblers, almost doubled its sales in 2018; the expansion of existing brands to territories such as Japan is returning positive signals; and the setting-up of operations in the US is progressing as planned and, at the same time, the company’s cost trend there has begun to decelerate” Hellberg details to investors.

Furthermore, an operationally savvy Catena Media has been able to navigate post-World Cup 2018 complexities by “applying the break and throttle to its UK marketing activity, as its partner operators adjusted to standard trading following a period of record advertising spend.

Transitioning away from its M&A strategy, Catena governance reports increased full-year 2018 group revenues of €105 million (2017: €67m), in which the affiliate network details that Organic assets contributed circa 23% of revenue generation.

2018 would see Catena undertake a number of adjustments for GDPR and European compliance costs, running alongside investments in staff, software infrastructure and international expansion projects, leading to operating expenses amounted to €66 million (€40m).

Closing its full-year 2018 accounts, Catena records a group EBITDA increase to €48 million up 47% on FY2017’s €33 million, with the company declaring net cash generated from corporate activities of €48 million (FY2017: €33 million).

Moving into 2019, Catena governance outlines that it will reinforce its European business assets supported by a refined scalable business model, to overcome ‘risks and uncertainties’, presented by changing compliance and regulatory dynamics.

“The process of transitioning from a distinct acquisition strategy to an increased focus on organic growth is progressing and the results have already been favourable, with clear indicators that we are on the right path.” Per Hellberg states closing 2018 trading.

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