Catena Media reports record Q1 revenue and earnings

[The Buzz]

In its interim report for Q1 2021, Catena Media reported o €40.7 million in revenues, which was 52.4% higher than the €26.7 million generated in the opening quarter of last year.

Search revenue in Q1 totalled €38.4 million, up 60.7% on last year, while paid revenue was down 3.0% to €2.3 million. Casino was the primary source of income, accounting for 62% of all revenue, ahead of sports betting on 35% and financial trading at 3%.

In a press release, CEO Michael Daly said:

The excellent performance reflects our teams’ focus on driving our global portfolio of affiliation brands. Special credit goes to North America, where year-on-year revenue jumped more than 200 percent, supported by the successful launch of operations in Michigan and Virginia during January. Several other US states are moving towards opening their markets and we see potential for one or more of these to go live later this year. Likewise, the Canadian market is opening up and Ontario is projected to come online later this year or at the start of 2022. Our strategic preparations and financial strength pre-position us for multiple new market launches and we are fully ready to act as soon as they come on stream.

Going forward, our North American business will benefit substantially from the addition of Lineups.com, which we acquired on 4 May. Lineups, whose Q1 sales accounted for about 10 percent of Catena Media’s Q1 revenue, has an estimated EBITDA margin exceeding 70 percent and provides a valuable alternative channel through which to address the US sports betting audience and further build market share. The purchase also demonstrates our readiness to pursue selective mergers and acquisitions that offer a good strategic fit for Catena Media. The successful refinancing carried out in the last year and the efforts of our internal teams have significantly reduced group net debt. Combined with strong cash generation across the business, this positions us to conduct additional M&A where we see scope for adding true value to the business.

In sports betting, we are truly developing the full reach of a global organisation, with North America now rivalling Europe in size. A broader international presence reduces our sensitivity to regional cycles in sports calendars, creating more consistent and predictable revenue flows over time.

By contrast, casino affiliation is a year-round product in all markets. Each market that opens up strengthens us financially, and we were pleased in the US to commence casino operations in Michigan during the quarter alongside our existing casino activities in Pennsylvania, New Jersey and West Virginia. AskGamblers.com continues to be an exceptionally strong casino product in Europe and shows steady growth in new markets including Japan. The AskGamblers complaints service returned a record sum to users, underlining our commitment to responsible and fair gaming. As a digital platform, Catena Media has a relatively small environmental footprint, and we continue to focus our sustainability efforts on social responsibility and governance.

Read more here: https://www.catenamedia.com/release/...ry-march-2021/

[PROFRBcom]

Casino was the primary source of income, accounting for 62% of all revenue, ahead of sports betting on 35% and financial trading at 3%.

Strange.

That equals 100% but they still own many poker sites and push online poker on them. Yet poker does not show up in that calculation...

[bpmee]

It's supremely ironic that US state gaming boards licensed a company based out of Europe. I wouldn't be surprised if their teams are full of people who used to work for offshore brands.

Meanwhile, affiliates who promote offshores have slim chances of a getting legal revenue shares. Good luck with CPAs as a small affiliate.

[Sherlock]

Catena Media has a relatively small environmental footprint, and we continue to focus our sustainability efforts on social responsibility and governance

The will collect farts in their officess and run servers with that energy?

[MMM]

Impressed that they manage to lower their debt.

Kudos to Ocean View guy that got % for selling PlayUSA network on top of the original amount. I remember him on PAL. Nice lesson for all of us that looking few years forward makes the difference.

[Scorebetting]

Something to aim for.

[Pokerface]

Really no surprises here. There would be a surprise if they lost money under the current environment we are in.