Better Collective has announced it bought back 868,708 shares last week which has seen its share price tick up in early morning trading after crashing more than 40% last week.
The share buyback programme that was announced in June was due to close on 5 September but had been extended to 27 November.
From 21 October through to 25 October, Better Collective bought back 868,708 shares for SEK198m (£14.4m).
The transaction means the firm now holds 1.4% of the outstanding share capital, with the buybacks being conducted by Nordic bank Nordea.
The buyback included 11,000 shares one day after the Danish affiliate confirmed a company restructuring and a reduction in full-year 2024 guidance, which sent its shares plummeting.
Updated revenue for the year is expected to land between €355m and €375m (£296m and £313m) against a previous range of €395m to €425m.
EBITDA before special items for the year has also been reduced, from earlier guidance of €130m to €140m to €100m to €110m.
The guidance shift came as bosses pointed to “lower activity than expected from US partners” and a “slowdown” in Brazil.
Streamlined operations are expected to save more than €50m per year, although Better Collective did not state which divisions or teams would be impacted.
The announcement, which came post-market close on Thursday 24 October, meant Better Collective’s shares opened at SEK162.60 after a previous close of SEK223.50.
The slump continued throughout the day as the market was spooked by the news, with the affiliate’s stock finishing the week at SEK131.40, down 41.2% on Thursday’s close.
However, early morning trading today, 28 October, has seen Better Collective’s shares jump more than 6% to SEK140.
In turn, over the last five days, the Danish firm’s shares are down 36%.
Jesper Søgaard, Better Collective CEO, said the restructuring was needed to “recalibrate spending and investment strategies to ensure sustainable long-term success”.
The CEO said: “We are currently implementing adjustments that will better prepare us for the future and I am confident Better Collective will emerge even stronger following this exercise.
“We operate in a market with strong underlying growth, despite being subject to volatility, and we are well-equipped to adapt and are strategically positioned to sustain our growth in the future.”
Last week saw significant shockwaves in the affiliate sector, with Catena Media also confirming 29 redundancies.
Gentoo Media did aim to assuage investor concerns with a preliminary trading update in which it said it expects Q3 to be the 15th consecutive quarter of all-time high revenue.
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