Catena Media sees profit dip despite revenue growth in Q1

Catena Media sees profit dip despite revenue growth in Q1

Affiliate giant Catena Media has posted a year-on-year decline in profit for the first quarter of the year, despite reporting an increase in revenue.

Published 3rd May 2019

Revenue in the three months to March 31 totalled €26.1m (£22.4m/$29.1m), up 9% from €23.9m in the corresponding period last year.

However, higher expenses – up from €15.3m to €18.3m – seemingly had an impact on operating profit, which slipped from €8.6m to €7.8m.

Profit before tax was also down from €5.1m to €2.0m, while profit attributable to the equity holders of the parent company fell from €4.7m to €1.9m.

Despite this, Catena did report that earnings before interest, tax, depreciation and amortisation increased by 8% year-on-year to €11.2m.

CEO Per Hellberg said: “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.”