Catena Media Q2
The top line
Revenue up 9% to €30.4m, adjusted EBITDA up 1% to €14.9m, margin was down to 49% vs. 53% in Q220. NDCs were up 34% to 140,025 during the period
North American revenues were up 37% and accounted for 41% (33% Q220) of group revenue. Organic growth of 9% and 17% excluding Germany.
Sauerkraut: CEO Michael Daly said Catena had been “on a journey” in Q2; given the choice that trip would have rerouted around the car crash in Germany. Asked about the decline in German revenues, CFO Peter Messner suggested that a broad 50% fall since the end of last year and the introduction of the ‘tolerance’ period in October has worsened in the second quarter.
Daly said the “darkest days should be ending” though he admitted that timings were uncertain. “You are putting your finger up in the air at present to sense the direction of the wind,” he said. He didn’t elaborate on how things will improve in Germany, but said he expects the industry to work out a new rulebook as the situation settles. “Germany will continue to be the talk and the focus for many months to come,” he added. “There is opportunity there and we expect to exploit that opportunity in the months ahead.”
Happy days: Catena is in a better position in North America which, Daly pointed out, was the “fastest-growing market for sports-betting and casino in the world” and presented an “unparalleled opportunity” for Catena. The company’s casino vertical “exceeded expectations” in Michigan and the group recently added the Lineups.com site to its offering, which Daly said would give Catena “even more upside.” Daly suggested that the weak current trading, – 2% organic, 11% ex-Germany – will improve as the sporting calendar gets busier. “The end of the quarter will obviously be stronger than the start,” he added.
