Stocks Tracker: August’s affiliate affairs see shares slump and soar

Better Collective

1 August closing: SEK243

31 August closing: SEK251.50

Peak August closing: SEK258.50

“You come at the king, you best not miss.” Better Collective’s position as the affiliate to beat is firmly cemented, despite an uncharacteristic mid-month slump in its share price, as its Q2 results demonstrated once again its seemingly unstoppable charge.

The Danish firm, which has seen its stock soar by 94% in the year-to-date, once again flexed its M&A muscles in August to acquire four Swedish sports media sites from Everysport Group for a combined €3.7m. The affiliate added sites focusing on football, hockey and floorball as it continues to expand its presence.

However, the news did little to impress the market, with Better Collective’s share price falling from SEK258 on the day of the announcement to SEK235 24 hours later. A further dip to a monthly low of SEK225 ahead of the publication of the group’s Q2 performance was soon abated thanks to the firm’s once-again impressive financial report. The affiliate released the report following market close on Tuesday 22 August, which meant the following day represented a boon on the market, with Better Collective’s shares soaring to SEK253.

EBITDA skyrocketed by 135% to €29m while group revenue jumped 39% to a record €78m, in what CEO Jesper Søgaard described as an “exceptional” quarter. The group also reported a 32% increase in new depositing customers to 500,000. The adrenaline shot of the positive results resulted in Better Collective’s share price increasing by 7% during August, and given the somewhat dramatic slump earlier in the month, will be a welcome single-figure rise.

Catena Media

1 August closing: SEK24.88

31 August closing: SEK17.98

Peak August closing: SEK24.88

The end of summer may well be a welcome sight for Catena Media given the affiliate’s share price slip by more than a quarter in August. The month began with the confirmation it had offloaded its UK and Australian businesses to Moneta Communications for €6m as it continues on its charge to focus on North America. The sale did little to impact the group’s stock, as the Stockholm-listed firm continues to shed its undesired assets in a snake-like fashion. 

The divestment was followed by the launch of a cost-reduction programme across its Europe-facing operations, which sees Catena Media aiming to reduce costs by between €3.8m and €4.2m, with full impact to be achieved during H1 2024.

A relatively flat opening half of the month, despite the two major disclosures, was followed by a significant slip in share price following the publication of the group’s Q2 financial results. On Tuesday 22 August, Catena Media reported a 60% year-on-year downturn in EBTIDA while revenue from continuing operations fell from €20.1m to €16.9m. The news sent the firm’s share price plummeting from a previous close of SEK20.40 to SEK16.24. A second slight dip to SEK16.14 followed the next day before the firm’s stock ticked up slightly to close out the month at SEK17.98.

Gambling.com Group

1 August closing: $12.17

31 August closing: $14.18

Peak August closing: $14.68

A quiet August for Gambling.com Group saw the firm’s share price steadily rise more than 16% during the month, taking the affiliate’s year-to-date stock percentage increase to 55%. Radio silence in the first half of the month, following a busy July which involved penning a partnership with The Independent and debuting its Casinos.com site, gave way to a strong surge in the middle of the month.

Releasing its financial report for the second quarter, the group revealed record revenue of $26m, with revenue from North American operations soaring 115% to $13.4m. A 161% leap in adjusted EBTDA to $9.4m and a 60% jump in new depositing customers were also seen as positive by the market, as Gambling.com Group’s share price moved from a previous close of $12.70 to $14.70.

The feel-good factor is seemingly set to continue, with the affiliate raising its full-year 2023 revenue and adjusted EBITDA guidance as a result of the quarter. Revenue is now expected to land between $100m and $104m, with adjusted EBITDA to amount to between $36m and $40m. The launch of sports betting in Kentucky in September and the ongoing development of the news Casinos.com brand have been earmarked as key drivers for the business in H2.

The post-results jump in stock marked the high point for August, with Gambling.com Group’s share price remaining relatively stable for the remainder of the month, closing out at $14.20.