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Chart 4 : Catena Media quarterly revenues 3Q18-3Q20 (€ m )
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20
10
0
27.7 27.3 26.1 23.7 26.4
3Q18 4Q18
26.6 26.7 27.8 24.9
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Chart 5 : Catena Media segment split 4Q19-3Q20
“ While the quarterly volatility in Catena Media ’ s results continues , the growth potential over the next years looks solid , thanks to the US market ”
HJALMAR AHLBERG , KEPLER CHEUVREUX
59 61 76 64
CASINO
Source : Company reports
STRONG SHOWING IN THE US
Catena Media ’ s position as the number one affiliate provider in the US market remains unchallenged for now and the company said that the performance during the quarter was strong despite the late start to the NFL season ( and the lack of any pre-season ).
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Still , an interesting dynamic is clearly apparent in the US . Due to the cost-per-acquisition nature of deals in the US , Catena said that
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SPORT
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Q419 Q120 Q220 Q320
while it benefits from new states coming on stream , it tends to underperform once the initial burst of marketing has faded . Hence , it pointed out that Pennsylvania suffered a “ performance dip ” similar to that which occurred in New Jersey in the second year after launch .
FINANCIAL
The company did not quantify either of these dips , however it maintained that the US was worth about 30 % of total revenues in the third quarter . On an annualised basis , Affiliate Monitor estimates the US is now worth circa € 30m and rising .
BIGGER GOOGLE IMPACT THAN PREDICTED
Catena admitted that the most recent changes instigated by Google in May had impacted the company “ more than initially predicted ”. The company said this was particularly true of the company ’ s German-facing sites , where both sports and casino traffic were “ negatively impacted ”. On the earnings call , Hellberg made the point that this “ didn ’ t just affect us ”. “ You need to work through it ,” he said . “ It was quite a strange update . Google will continue to update .
“ After vigorous interventions , including revisiting the content quality and structure with both internal and external expertise , we saw the traffic and performance from most of the impacted sites
January 2021