Catena Media records strong North American growth despite wider group losses

Catena Media has posted an 11% year on year (YOY) jump in North American revenue to €18.6m ($19.2m) for Q3 2022. The affiliate reaped the rewards of its continued investment into the region, with North America now accounting for 58% of total group revenue, up from 51% in Q3 2021. Catena pointed to the start of the NFL season in September and the launch of licensed online sports betting in Kansas in the same month as the two key drivers of growth. Additionally, Catena inked its first major US media deal in August after securing a partnership with Advance Local’s NJ.com website in New Jersey. Post-Q3, Catena confirmed it had released pre-live marketing campaigns with operators in Maryland and Ohio ahead of projected launches. In October, revenue from North American sports betting and casino increased by 20% compared to October 2021. Despite the group’s overall casino revenue dipping 10%, driven by impacts in Japan and the continued strategic review in Europe, North American casino revenue was strong. The firm noted double-digit growth across New Jersey, Pennsylvania, Michigan West Virginia, and Ontario, while September was the best month of the year for the company. Sports revenue increased by 6% in North America, owed in part to the large Arizona market launch and a national rollout by Caesars Sportsbook. However, excluding the Arizona and Kansas launches, North American sports revenue leaped 43%. At group level, revenue was flat, with a 2% decrease to €32.3m as EBITDA plummeted by 111%. Catena also noted that its strategic review, which led to the firm openly selling off its Europe-facing assets, had led to the significant downturn in revenue. Catena confirmed the review was nearing completion at the time of publication of EBITDA, with the firm having reduced its European headcount by 25% and generated annualized savings of €5.5m. As of 30 September, the group had 452 employees, up from 426 in Q3 2021. Reflecting on the quarter, Catena CEO Michael Daly once again championed the potential of the North American market. Daly said: “Our strength and expertize in organic search has already made Catena Media the leading affiliate for online sports betting and casino in North America. “We see no reason why this remarkable growth story should not continue. High player values and public enthusiasm for online sports betting and casino are projected to support high margins for the foreseeable future,” he added. Catena’s stock closed the day down 24.5%.