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Affiliate Monitor Executive summary
Executive summary
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There are three questions that will be of particular interest to the rest of the sector in 2022 , with each essentially revolving around opportunities in the US . As can be seen from the results from the largest listed betting and gaming affiliates , it is their relative positioning in North America which is now of paramount importance as the larger operators in the space continue to growth both organically and via acquisition .
The latest deals involving Catena Media , Raketech and Gambling . com are testament to the amount of money now being spent to maintain pre-eminence in the US and they are unlikely to be the last . Indeed , a recent analyst note from Peel Hunt suggested that further consolidation among the listed entities was on the cards . Looking at the sector ’ s growth characteristics – particularly in the US – the analysts said there was a case for it to be trading on higher multiples . Further , they noted that with some companies in the sector trading at lower ratings than their peers , “ this seems to us to be fertile territory for consolidation ”.
The first question is whether Catena Media will seek a separate listing for its North American operations . As this report points out , while the Catena share price had a decent year in 2021 , it could have performed better , and without the drag of the legacy business in Europe and Germany , in particular , it almost certainly would have . Hence , the recent comments from Catena Media ’ s CEO Michael Daly that the company is considering a possible separate float are indicative that it sees greater potential for generating investor enthusiasm in the US than back in Europe .
The second question relates to the future of GiG ’ s media arm . While it has been very successful on its own terms and can lay claim to being the element of the GiG business keeping the group afloat in the last few years , it does appear to be losing ground against some of its rivals . Moreover , the willingness of GiG to advance the business through acquisition seems limited , particularly given its recent M & A activity on the platform side with the Sportnco buyout .
Our last question is more about the long-term picture for affiliation . The sugar rush of CPA has suited the sector well in the US as the addition of new states provides an immediate injection of revenues for all the major providers . But the foregoing of revenue share in the US does mean that this immediate infusion of cash comes at the expense of a long-term revenue stream . As many have suggested , this suits affiliates as much as the operators at present , but with the latter learning ever more about the lifetime values of their customers in the US now , there might be room for more deals with a longerterm structure soon enough . iGB Affiliate Monitor