iGB-Affiliate-Monitor_OCTOBER-2021 - Page 16

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Affiliate Monitor Company-by-company review : Catena Media
Chart 6 : Catena Media NDCs Q319-Q221
160000 157546
150000
140000 140025
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100000
90000
119529
113000
104326
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Q319
Q419
Q120
Q220
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Q420
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Q221
Source : Company reports
CEO Michael Daly said the figures could be explained away by the seasonality which affects the US market in the second quarter ( though again the comparison with Better Collective is perhaps not kind here ). He pointed out that the comparable period last year was one of the strongest of the quarter , with sports off the agenda but casino benefiting from a “ surge ”.
However , trading in the early part of the third quarter was only 2 % ahead ( or 9 % without Germany , more of which below ). “ The end of the quarter will obviously be stronger than the start ,” Daly noted , pointing out that the end of the quarter was when US sports “ pick back up ”.
Summing up the US opportunity , Daly pointed out that the North American market was an “ unparalleled opportunity ”. He added , “ It ’ s becoming a larger proportion of our business . It is the largest and fastest-growing market for sports betting and igaming in the world .”
Naturally , this growth will be aided by the company ’ s recent acquisitions . As discussed earlier in this report , during the quarter Catena Media acquired Lineups . com and then post-quarter it also snapped up the gaming and betting sites of i15 Media . Of the first buyout , Daly said that adding to the portfolio “ gives us even more upside and will be a key player for upcoming markets ”, noting that the integration was already completed .
SUNK
As with others in the sector , the biggest issue for Catena was back in Europe . The organic growth rate of 9 % for total revenues would have been 17 % without the drag of Germany where the implementation of the new regulations as of July has clearly played havoc with the affiliate sector ’ s business model .
Daly seemed somewhat at a loss to explain what was happening in Germany where , as was stated by rival Better Collective , the sharing of revenues is now effectively banned , leaving the affiliate sector having to find a new model for transferring revenues .
“ You are putting your finger up in the air at present to sense the direction of the wind ,” he told analysts on the earnings call . “ Timings are unclear but the darkest days should be ending .”
Peter Messner , chief financial officer at Catena , said that Germany was previously worth circa 15 % of the company ’ s historical revenues but that since the tail end of last year , when iGB Market Monitor