90000 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
18
Affiliate Monitor Company-by-company first-quarter results analysis
Source : company reports
Chart 12 : Catena Media share of revenue by
What ’ s your view ? source Q119-Q121 (%) Tweet @ iGamingBusiness igamingbusiness . com
19
100 % end Catena announced the $ 39.6m acquisition of US-facing Lineups . com . Pro forma it would have been worth circa € 2.2m in Q1 . Post-quarter revenue growth was up 15 % YoY , 24 % ex-Germany . Management noted that this was against a very strong comparable .
WORLDWIDE APPROACH
On the earnings call , CEO Michael Daly spoke about three types of markets for Catena : growth markets ( including Japan and Italy ), mature markets ( mostly in Europe and including Sweden , the UK and Germany ) and incubation phase markets ( which includes Latin America , Asia and the US and Canada ). On the question of North America , Daly spoke about the potential from the “ giant states ”, including New York and Florida . “ We already operate in all these states because it is a matter of when , not if , they regulate and we will be the leader there . We see great potential and that is just looking at the sports betting landscape . Consider that many of these states will also add casino .”
CPA RISING
One major factor in the US is the clear preference on the part of operators for CPA over revenue share and what that means in terms of how a new state opening affects Catena ’ s figures .
Daly said “ you do see an influx ” whenever a new state opens up . “ But it also means that post that
Chart 10 : Catena Media EBITDA progression Q119-Q121 (€ m )
€ m
24
22
20
18
16
14
12
10
8
11.2
9.4
11.4
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Chart 11 : Catena Media NDCs progression Q119-Q121
160000
150000
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130000
120000
110000
100000
90000
124007
99981 99000
influx , there is also a higher run rate ,” he added . “ It is difficult to project what that run rate looks like now we have entered the off season [ for US sports ]. Until we reach the start of the football season , we expect a higher base run rate , but it might be early to
8.5
113000
say how much higher that is .” Daly
12.5
119529
13
104326
12.2 12.4
95000
125000
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
reiterated the importance of seeing growth in existing states in order to fund expansion into new states .
QUESTIONS IN EUROPE
23.3
157546
Revenues derived from Germany were down by more than 50 %, a trend which has clearly continued into the second quarter . A question
Source : Company reports
Chart 12 : Catena Media share of revenue by source Q119-Q121 (%)
Source : company reports
Chart 13 : Catena Media EBITDA margin progression Q119-Q121 (%)
that 34 will remain unanswered for
32
now is whether the market post- market openings for dates to slide .”
30
Chart
July 1 is any
14 different
: GiG in revenue
media services revenue terms for the affiliate sector . Daly
said Source only : company that reports the outcome later
give an uptick ,” he 8.6said . “ But there is always the potential with new
PAYING IT BACK
Catena Media is on a “ significant in Q3 and Q4 was still “ unclear ”. debt reduction journey ”, said CFO
11
Outside of Germany it looks more Peter Messner . That includes a
Chart 10 14 : GiG media services revenue positive . “ The Netherlands should refinancing . As a result of strong
cash generation 8.6 , the debt 8.6 leverage has been reduced . He said the company was now in a “ much better position ” and is exploring refinancing opportunities on the bond repayment that would otherwise be due in May 2022 . The company is helped in this by its own improvement in margins and hence profits .
iGB Affiliate Monitor July 2021
90 %
80 %
70 % 100 %
60 % 90 %
50 % 80 %
40 % 70 %
30 % 60 %
20 % 50 %
10 % 40 %
0 % 30 %
20 %
10 %
44 39 13 4 44 39 13 4
47 35 15
47 35 15
Source : company reports 0 %
42 43 13 42 43 13
41 41 16 41 41 16
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Chart 13 : Catena Revenue share Media CPA Fixed EBITDA fee Subscriptions margin
58
Chart
56
13 : Catena Media EBITDA margin
54 progression 52 Q119-Q121 (%)
%
48 58
46 56
44 54
42 52
40 50
38 48
36
46 3444 32
42
30 40 38 36
43
40
43
32
44 39 15 44 39 15
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
42 44 13 42 44 13
47 47
9 9.1
progression Q119-Q121 (€ m )
11 7
10 6
9 5
8 4
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
9.1 8.6
8 7.5
8.2
46 38 15 46 38 15
Revenue share CPA Fixed fee Subscriptions
progression Q119-Q121 (%)
%
50
43
40
43
32
47 47
Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q121
Source : company reports
progression Q119-Q121 (€ m )
€ m
8 8
7.5
8.2
49
49
8.6 8.6
46 39 14 46 39 14
47
47
9
9
32 59 9 32 59 9
57
57
10
10