Part 1: Analysis of results from second quarter
“We generally have high traffic levels on our
The US aside, areas cited variously for
sites, but player values remain at the lower levels, expansion include Latin America, with Spanish
which we have noted since the beginning of the and Portuguese language sites very much to the
year,” chief executive Michael Holmberg told fore, parts of eastern Europe including Romania,
analysts. and Japan and India.
Notably, there is a clear move towards
Geographic expansion unregulated markets. While the focus for many of
The dependence among many affiliates on key the affiliates’ operator clients will be on regulated
regulated markets across Europe – previously markets, and the risks involved there, the affiliates
trumpeted by Catena Media as a strength – is themselves will be seeking greener pastures in
being addressed to varying degrees across the markets where the regulatory framework is either
listed sector. Of course, the US is already a major in the process of being built, such as Brazil, or
area of activity and this will be dealt with later on entirely absent, as in India and Japan.
in this report.
Company-by-company results takeaways
Catena Media
• Revenues of 23.7m, down 9%
• EBITDA of €9.4m, down 22%
• NDCs down 29% to 99k
The company also said it would be dipping a
toe in South America with both Spanish and
Portuguese language sites planned.
Third quarter improvements
The second quarter was one to forget for Remedial actions have taken place within the
Catena Media. The company laid out a host past three months or more to improve under-
of reasons for the revenue miss including performing assets and Hellberg said that the
seasonality, regulatory pressure in the UK and results of this were being seen in third quarter
France, continuing issues with the Swedish trading to date.
market, a drop-off in lower-value NDCs and
instances of higher player pay-outs in casino.
Italy and France
While discussions with the regulator in Italy are
EBITDA target of €100m is nixed ongoing, it was notable that Hellberg said that
Having previously abandoned its EBITDA trading in the market was “more or less dead
target of €100m, chief executive Per Hellberg in the second quarter”, With Italy now below
had to admit during the earnings call that the 10% of total revenues. In France the company
target was “a long way away” at present. “The has two products, lead generation and paid-
ingredients are there to make that happen, but for professional tips, and Hellberg said the
costs will be a factor,” he said. No new target regulator had instructed these can no longer be
date was set. on the same site.
Geographic expansion plans Raketech
One remedy for Catena’s ills comes with
plans for further geographic expansion, with
sports being launched soon in Japan and
sport and casino slated for launch in Romania.
iGaming Business • Affiliate Monitor • October 2019
• Revenue down 6% to €5.7m
• Organic growth down 9%
• Adjusted EBITDA down 10% to €2.9m
• NDCs up 22% to circa 25k
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