Avidly decreases guidance of EBIT for the full year of 2019

Avidly decreases guidance of EBIT for the full year of 2019

Avidly Plc, insider information, 25 June 2019 at 15.45 

Marketing service provider Avidly defines its outlooks for 2019 and changes guidance of its EBIT for 2019. Previous guidance has been published on the 19th of December 2018 and later renewed on the 7th of March 2019.

Avidly estimates now that its EBIT for 2019 will be lower than in 2018, but is still expected to be positive. Previously, Avidly estimated that its EBIT would grow from the figures of 2018 (EBIT in 2018: EUR 0.6 million). Avidly will not change its guidance on the revenue for 2019, but remains in the assessment that its revenue for the year will be EUR 22-24 million.

Avidly’s updated guidance for the full year of 2019 in its entirety is that its revenue will be EUR 22-24 million, along with positive EBIT (EBIT in 2018: EUR 0.6 million).

CEO Jyrki Vaittinen:

“In the Inbound Marketing -business area, our goal is to grow significantly according to our new strategy. During the first half of 2019, we have focused on recruiting new employees to help us grow in the Nordic region. As a result, we have recruited 27 professionals in our Inbound Marketing -business area. Our operating profit (EBIT) in the Inbound Marketing -business area in the first half of the year will, therefore, be negative, but we believe that our profit will begin to improve and near break-even during the second half of the year.

In the Marketing Services -business area, we lost our outsourcing contract with Finnish retail company SOK at the end of the year 2018 and adjusted our operations accordingly during the first half of 2019. We have not been able to get compensatory revenues at the pace we estimated at the end of 2018. In addition, the business integration of Nitroid – which we acquired in 2018 – has been a slower process than expected. Changes and recruitments that we have done in the spring of 2019 in this business area will show in our profit at the second half of the year, but the operating profit (EBIT) for the first half of the year is assessed to be approximately near EUR 0 in the Marketing Services business area.

Examining all revenue for the full year of 2019, the Inbound Marketing business area is growing well, with Marketing Services improving slightly slower than we estimated earlier. Combined together with the challenges that occurred in the first half of 2019 has led to refined guidance of this full year’s EBIT – even though our assessment of the revenue will remain unchanged.”

On the 22nd of August 2019, Avidly will publish financial information for the first half of the year regarding the business areas of Marketing Services and Inbound Marketing.

This release contains information which Avidly Plc makes public pursuant to the EU Market Abuse Regulation, article 17.

AVIDLY PLC
BOARD OF DIRECTORS

Additional information:
Jyrki Vaittinen, CEO, tel +358 40 703 1662

Oaklins Merasco Oy acts as Avidly Plc’s Certified Advisor, tel. +358 9 6129 670

Avidly is Finland’s leading marketing service provider and a leading marketing automation company in the Nordics, listed on the Nasdaq First North marketplace in Helsinki. We create an atmosphere for growth to take our customers forward. We are a team of more than 230 navigators and explorers, makers and shakers in 14 locations in Finland, Sweden, Norway and Denmark. Read more: investors.avidlyagency.com/en

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