Part 1: Results from the first quarter
Italy ban market conditions, but at present it is too early
The other problematic country is Italy. It was to say when there will be a lasting recovery in
Catena Media’s acquisition of ASAP Italia which, Europe. Increased political risks lie ahead and are
arguably, marked the high point of the recent something we have to live with.”
wave of M&A as it was barely a month after the
deal was announced that the Italian authorities The share price performances
unveiled their plans to put a halt to all advertising The uncertainty is certainly reflected in the share
and marketing of gambling within the country, price performances across the listed affiliate
including affiliate marketing. space. Most clearly suffering is Catena Media,
Catena itself tried to look on the bright side in
which has seen its share price more than halve
its first quarter results, and suggested that odds since its peak in November 2018 – from SEK128 to
comparison sites, where there isn’t any form of a low in May of SEK50 before recovering slightly
invitation to play, “are not considered advertising” to end June at the SEK62 mark.
provided they “comply with the principles of self-
restraint, truthfulness and transparency”.
Gambling.com Group also noted the “clarified”
Also in the doghouse is XL Media, which has
suffered a series of precipitate drops in the past
year. Such is its unloved status that between
news on “non-prospecting performance late December and early May the company has
marketing activities”, and added: “The affiliate’s bought more than 10 million shares as part of its
role in the gambling advertising ecosystem is a share buyback operation for a total of £6.4m.
value-add to the consumer and not the kind of This has, to date, had only a mild effect (see
predatory marketing the Italian regulator was share price chart). The programme continued
aiming to stop.” throughout May and June. As can be seen, the
Summing up the pressures in Sweden, the
Netherlands (where the prosecutorial Dutch
gambling authority has had affiliates in its
share price has covered some ground from its late
May lows of 49p.
It’s an altogether different story with Better
crosshairs as much as errant operators) and Collective, where the shares have enjoyed a
Italy, Net Gaming Europe said the “ongoing reasonable price performance since floating last
restructuring” of the European gambling sector June. Largely due to the prolonged slump in the
would “continue to have an adverse effect value of Catena’s share price, Better Collective
on our revenue in the short-term”. And chief now has a broadly equivalent market cap of
executive Marcus Teilman added: “The short- SEK3.4bn, compared to about SEK3.56bn for
term uncertainty does not change the long-term Catena.
Company-by-company results takeaways
Better Collective
• Revenues up 97% to €14.9m;
Revenue share remains the majority of total
organic growth 41% revenues at 72%, down from 80% this time
NDCs up 147% to 116,000 last year. Of the remainder of its revenues, 18%
•
• Q1 EBITDA up 212% to €6.5m
• Pre-tax profit €4.9m, up from €1.5m
iGaming Business • Affiliate Monitor • August 2019
came from CPA and 10% from other income.
The company noted that beginning in late 2018,
PPC campaigns had been initiated.
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