Catena Media reports 53% Q1 revenue rise fuelled by US growth

Catena Media has reported a 53% rise in Q1 2021 revenue to record levels of €40.7m (£35m), primarily driven by growth in North America. Casino revenue rose by 54% to €25.2m, corresponding to a 62% share of group revenue, while sports betting revenue increased by 64% to €14.4m, equalling a 35% share of total. Revenue from igaming operations in the US soared by more than 200% year-on-year to €22.4m, accounting for 55% of overall Q1 revenue.

Adjusted EBITDA shot up by 94% to €25.1m, up from €12.9m in the same period of last year, on an adjusted EBITDA margin of 62%. The Malta-based affiliate also reported a 32% uptick in NDCs for the quarter to 157,546. After the reporting period in April, organic revenue grew 15%, or 24% excluding headwind-ridden Germany, when compared to average monthly revenue in Q2 2020. Catena Media CEO Michael Daly said: “Special credit goes to North America, where year-on-year revenue jumped more than 200%, supported by the successful launch of operations in Michigan and Virginia during January. “Several other US states are moving towards opening their markets and we see potential for one or more of these to go live later this year. “Likewise, the Canadian market is opening up and Ontario is projected to come online later this year or at the start of 2022. “Our strategic preparations and financial strength pre-position us for multiple new market launches and we are fully ready to act as soon as they come on stream,” he added. Catena Media is expecting further US gains in the future following the $40m May acquisition of sports betting affiliate website Lineups. Lineups’ Q1 sales accounted for around 10% of Catena Media’s Q1 revenue and the brand has an estimated EBITDA margin of more than 70%. Catena Media’s share price increased by more than 6% in early trading on Nasdaq Stockholm to SEK60.10 (£5.10).