CentralNic expects to report improved Q1 revenues

Internet platform operator CentralNic Group said on Monday that it now expects to report improved quarterly revenues and underlying earnings.

CentralNic stated gross revenues were seen coming in at approximately $194.9m for the three months ended 31 March, while adjusted underlying earnings were pegged to come in at roughly $21.3m, an increase of 24% and 15%, respectively. Year-on-year organic growth for the trailing twelve months was estimated at approximately 45%.

Cash increased to $102.9m at the end of the quarter, up from $95.0m at the end of the calendar year, reducing net debt to $49.2m.

The AIM-listed group noted that due to its "expanding product range", the benefits of operating leverage, and a focus on "efficient execution", it remains confident that it will continue to trade "at least in line with" current market expectations.

CentralNic also added that its online marketing segment "continues to thrive" through its earnings-accretive partnerships, including its latest agreement with Microsoft Bing, which will "diversify and deepen" its advertiser demand pool and provide opportunities to acquire customers from a broader set of media.

Chief executive Michael Riedl said: "As CEO, I am thrilled to announce that CentralNic has had an outstanding start to the year, achieving our best-ever first quarter. Our continued industry leadership and reputation for excellence have enabled us to secure key partnerships with some of the world's leading technology companies, including Microsoft."

As of 1045 BST, CentralNic shares were down 4.73% at 116.80p.

Reporting by Iain Gilbert at Sharecast.com