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The US is clearly the future for Catena Media . It is where the growth is and where the focus of its major customers lies . But importantly , it is also where the investor interest exists . Gambling . com ’ s listing in the US is one sign of the penny dropping . While that company ’ s earnings are still largely European – at least until the RotoWire acquisition starts contributing to its quarterly revenues – it clearly sees its future as being a US-facing company .
Meanwhile , we have also seen in Canada the listing of Playmaker , which again , while not being a wholly US-focused business as yet , is certainly focused on the affiliate opportunity in North and Latin America . Then there is the deal that has seen the similarly Canadian-listed FansUnite pivot at least in part towards the affiliate sector via the merger with the newly forged American Affiliate .
The potential of a US listing
was acknowledged by Catena Media CEO Michael Daly in the company ’ s Q3 earnings call . “ We are very seriously investigating how to maximise the opportunities in North America including the investment strategy ,” he said . “ We are exploring it .”
That US investor base is the key here . A US-based , US-listed and US or North American-focused affiliate business would have obvious advantages when it comes to attracting investors interested in pure-play sports betting and igaming activities . With the only remaining questions being about the structure of the company post- US float , it appears almost certain that Catena will exit 2022 in a very different shape to how it enters it .
WILL GIG SELL ITS MEDIA DIVISION ?
The same might be said about Gaming Innovation Group ( GiG ). The big news for GiG in recent months didn ’ t come from its media division . The acquisition of the Sportnco business in December propels the company more clearly into being a sportsbook backend supplier , and adding that capability to the already existent platform side means GiG can better compete with the likes of GAN and Kambi as full-service sports betting and gaming suppliers .
Where that leaves the affiliate business is more open to question than ever . Revenues have grown impressively in the past year . But with its major rivals growing at a faster pace due to acquisitions , it leaves the business looking relatively subscale at a time when size in igaming affiliate land is everything .
While there is no suggestion that the business is lacking in operational investment , just by relying on organic growth it is falling behind its major
February 2022