Catena Media PLC underlined the strategic importance of its global diversified media portfolio, as a leap of 3x in US revenue and the continued growth of the Japanese market helped compensate for European drops.
Based on the publication of its interim results Q3 2021 for the period ending on September 30, Catena recorded operating income of €33 million ($37.3 million), 33% more than 2020.
Growth during the third quarter was mainly attributed to sports matches and casino revenue in North America rising by 124%, now representing 51% of the group income.
According to Chief Executive Officer of Michael Daly, "The results underscore the benefits of Catena Media's mission to develop a broad international footprint across key sports betting and casino territories, an approach that enables us to offset challenges in one market with gains in another."
He added, "Our strong performance so far this year provides a good starting point to deliver on the long-term target of double-digit organic revenue growth in 2022 as well."
The portfolio of North America helped Catena to deliver casino income from €20 million ($22.6 million), an increase of €16 million ($18 million) in the third quarter of 2020, along with sports game revenue of €12.5 million ($14.12 million). Catena quoted improved performance "Lineups.com and I15 media active in segments" as specific reasons for the improvement.
In other places, Catena emphasized the continued profits for its Inventory of Italian Sport, while the Japanese activity has registered a duplication in the revenue and acquisitions of clients during the Q3 trade. The company confirmed that Japan now represents 9% of the revenue of the total group.
Despite the maintenance of revenue growth, the results of the Catena period were diagnosed by a higher expenditure of €69 million ($77.9 million), attributed to a combined position of €50 million ($56.5 million)in German and French impairments.
Daly explained, "Germany is now a different market, but one that offers long-term promise once the regulatory environment clarifies, the market adjusts and our investments in redeveloping our German sports and casino products begin to bear fruit. Nevertheless, the upward climb will be slow."
Regardless of the significant German adjustments, Catena has delivered a positive EBITDA (earnings before interest, taxes, depreciation and amortization) of €15 million ($16.9 million), including 1.1 million affected items, which is an increase of 23% in the results of 2020 compared to €12.2 million ($13.7 million).
Year to date, Catena has seen revenue of €105 million ($118.6 million)and also maintained an increase of 35% YTD outcome of €51 million ($57.6 million), €13 million ($14.6 million) more than the same period last year. In the presentation to investors, Catena revealed that it all will prioritize options to accelerate growth in Japan, Italy, the US and Canada.
Daly concluded, "Financially, the group stands on a solid foundation. During the quarter we commenced a share buyback program to optimize our capital structure by returning capital to shareholders."
He added, "The acquisition of i15 Media assets underlined our ongoing readiness to use our financial strength when attractive business opportunities arise. That said, I foresee our growth in the coming months as being largely organic as we accelerate the exciting journey of internationalizing our products and becoming a truly global force in our industry."
Image source: Catena Media