Catena Media lauds US growth as Q4 2022 revenue grows 15%
CEO Michael Daly highlights “protectable and predictable” regulated markets as marker for future growth as Maryland and Ohio launches pay dividends
Catena Media has posted a 15% year-on-year (YoY) increase in its group operational revenue for Q4 2022 to €27.4m, with results buoyed by strong growth in the US affiliate market.
Delivering its financial results for the period, the Malta-headquartered firm confirmed a 14% YoY increase in its adjusted EBITDA to €12.3m, corresponding to an adjusted EBITDA margin of 45%.
Revenue from Catena’s North America operations rose by 31% YoY during Q4 2022 to €21.5m, accounting for 78% of the affiliate’s total group revenue, thanks in part to the launch of sports betting operations in Maryland in November.
The affiliate also lauded profits from a “favourable run-up period” prior to the launch of legal sports betting in Ohio on 1 January 2023 as another factor in its North American growth.
Catena’s organic growth amounted to 15% during Q4 2022, with new depositing customer numbers rising by 1% to 84,651.
During the quarter, Catena concluded the sale of its AskGamblers subsidiary to Gaming Innovation Group (GiG) and associated casino brands for €45m as part of a shift towards focusing on the North American market.
The group has also concluded the sale of its financial trading segment to an unnamed buyer at the end of January 2023.
In accompanying remarks with Catena’s results, CEO Michael Daly highlighted the need for the affiliate to focus on regulated market opportunities, with most of these concentrated in the US.
“We believe that regulated markets provide a more protectable and predictable environment for operators and for affiliates like Catena Media. Regulation also levels the playing field for all market players, and we welcome this positive force in our industry,” Daly explained.
“As a remote-first, global organisation we possess the ability to invest flexibly into newly regulated markets in different regions once they can offer stable and foreseeable operating frameworks for affiliate marketing.
“At present, those opportunities are concentrated in North America, and it is our firm belief that the United States and Canada offer the best investment case for the company and its shareholders in current conditions.”
The CEO continued: “This, essentially, is the rationale behind the streamlined strategic focus that developed out of the strategic review announced in May 2022.
“The review process concluded in Q4 with the sale of AskGamblers and associated global casino brands to Gaming Innovation Group (GiG) for EUR €45m. AskGamblers is a solid business with healthy margins.
“However, the accelerating trend towards market regulation led us to conclude that the brand, which partly addresses non-regulated grey markets, would enjoy better development prospects under new ownership,” Daly concluded.
In respect of full-year 2022, Catena Media reported a 7% increase in group revenue to €110.1m, with adjusted EBITDA slumping 16% to €50.1m, corresponding to a reduced adjusted EBITDA margin of 46%.
North America revenue increased by 24% YoY to €84.5m, equivalent to 77% of Catena’s group revenue during 2022.