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“ There is lots of opportunity as Covid becomes a more understandable factor . But we are not going for stable , we are going for growth ”
MICHAEL DALY , CATENA MEDIA operators started complying with the so-called tolerance period in Germany ahead of the new regulations ’ introduction , revenues had declined by more than 50 %.
Against this backdrop , it was perhaps a surprise that Daly struck an optimistic tone about the European markets generally . “ I don ’ t want to discount the opportunities elsewhere ,” he said , noting that the business in Europe has been through something of a “ transformation programme ”.
“ It starts with affiliation , getting the traffic flows right , the content SEO traffic which leads to conversions which leads to revenues ,” he said .
“ We are investing in Europe ,” he added . “ There is lots of opportunity as Covid becomes a more understandable factor . But we are not going for stable , we are going for growth .”
Of particular interest , again as with its rivals , is the Netherlands . “ I think it is a tailwind in the fourth quarter ,” he said . But he cautioned on timings .
“ I would be slightly concerned it may be a slow start as the regulators and the operators get comfortable ,” he added . “ It is going to be additive to our business . It will grow over time , but it might start a little fractured . But we are sure we have the team and the products and we have invested for that market . We ’ re building up our base to be ready for the operators .”
Even Germany was seen as a long-term opportunity , though Daly steered clear of specifics . “ Germany will continue to be the talk and the focus for many months to come ,” he said . “ There is opportunity there and we expect to exploit that opportunity in the months to come .” He noted , though , that the company would need to be patient . “ It won ’ t be a 24-day turnaround .”
A market where Catena has also been making progress is Japan . The global brands – in particular AskGamblers – have been performing well and reached another revenue high in April , though the company added that the growth rate had stalled over the rest of the quarter .
Japan is where Catena particularly sees opportunities and the company witnessed double-digit growth in the country in the second quarter . Now the company is also looking at other opportunities in Asia with Catena ’ s financial segment getting a rare mention on the call particularly with regards to Malaysia .