Stocks Tracker: Q4 results’ ramifications as listed firms suffer share price declines

Better Collective

1 February closing: SEK292.50

29 February closing: SEK296.00

Peak February closing: SEK322.50

One of the few firms to see a positive share price movement from the start of the month to the end, but it wasn’t the affiliate giant’s Q4 results that caused the uptick in price; if anything, the release of the results caused a steady decline from the mid-month peak. 

Better Collective’s share price steadily crept up during the month, reaching its peak of SEK322.50 (£24.70) on 19 February. Later in that week, the affiliate released its Q4 and full-year 2023 report, which saw the firm exceed its revenue target of €315m by €10m, with EBITDA also at the higher end of the target range at €105m-€115m. 

However, despite the positive full-year results, Better Collective posted flat Q4 revenue of €85.2m compared to Q4 2022’s return of €86.1m, but the affiliate attributed this to the World Cup and pre-registration for Ohio’s sports betting launch in January 2023.

Upon the release of the healthy results, 22 February, the firm’s shares declined to a close price of SEK300 and continued to see declines until the last day of the month. The affiliate’s share price jumped by SEK11 on the final day of February thanks in no small part to the firm raising DKK1.1bn after selling over five million shares. 

Better Collective announced on 28 February that it was “offering” around 10% of “new shares” via an accelerated bookbuild. This action saw the firm’s share price close out the month at SEK296. 

Betsson

1 February closing: SEK116.10

29 February closing: SEK103.20

Peak February closing: SEK120.89

Betsson Group is another firm whose positive Q4 results didn’t translate into an uptick in share price. The operator kicked off the month with a steady increase in share price until it reached its peak on Valentine’s Day, 14 February, at SEK120.89, but it was the release of the group’s Q4 results that saw the share price come crashing down.

On 15 February, Betsson announced an eighth consecutive record quarter as the firm’s CEECA operations surpassed €100m in revenue for the fourth quarter of 2023. 

Group revenue at the Stockholm-listed firm landed at €251.9m for the period, up from €220.6m in the same quarter a year prior. Alongside the record revenue, Betsson noted a 40% leap in EBITDA to €71.9m from €51.1m, with a corresponding margin of 28.6%, up from 23.2%.

Despite the positive results, Betsson’s share price dipped from its earlier February peak all the way down to SEK107.11. Since that point, the firm’s share price continued to decline only marginally, rising again to SEK108.41 on 20 February. However, that increase was short-lived as the remainder of the month saw only ongoing declines, eventually leading to a month-end price of SEK103.20.

Catena Media

1 February closing: SEK10.10

29 February closing: SEK9.96

Peak February closing: SEK10.21

Another set of troubling results and changes at the top has seen Catena Media’s share price continue to decline throughout February. 

The affiliate did enjoy a good start to the month as the firm’s share price crept up to reach a monthly peak of SEK10.21, but, as with the aforementioned operators, it was the release of the firm’s Q4 2023 results which saw a drop-off in share price. The headline decline in the report showed an 88% slump in adjusted EBITDA in the quarter, attributed to a lack of US sports betting state launches and overall US market headwinds impacting operations. 

Revenue also declined in the final quarter of the year, with overall revenue from continuing operations dropping 41%, from €24.5m to €14.5m. Following the publication of the results, Catena’s share price dipped 6.7% to SEK8.80.

The affiliate’s price slowly picked up as the month progressed, spiking on 27 February due to the announcement of CEO Michael Daly resigning from his position with immediate effect. Pierre Cadena, VP of corporate strategy, replaces Daly on an interim basis. 

The firm’s share price then experienced its second and highest spike of the month on the final day of February, thanks to Catena’s rival, Better Collective (BC). Rumours have it that BC’s raise, via an accelerated bookbuild share sale, could see it look to acquire Catena. The news sent Catena’s share price rocketing over 25% at one point on the day, before settling down just shy of 20% up. 

Kambi

1 February closing: SEK139.80

29 February closing: SEK107.80

Peak February closing: SEK139.80

Another firm that endured a difficult month and negative results was sports betting supplier Kambi. The company’s starting share price of SEK139.80 was to be the peak of Kambi’s share price for the month with the business experiencing a steady month until the publication of its Q4 2023 results alongside the group’s outlook for 2024. 

Kambi Group reported a 23% drop in revenue for the fourth quarter, falling from SEK646.8m to SEK495.7m, while EBITDA and operating profit also fell. Management did add the caveat that the previous year’s results were bolstered by a SEK141m termination payment from PENN Entertainment, but even excluding this payment, overall revenue still fell by 2%. 

The supplier highlighted that 2024 is set to be a “transitional year” for the business, not in small part due to the stepping down of its current CEO, Kristian Nylen, in May.

The trading update saw the firm’s share price tumble by just over 20% from SEK128.10 to SEK100.70 at the close of play on 21 February. This decrease seems to be becoming a worrying trend for Kambi as over the past 12 months its share price has fallen by more than 46%.

Following the significant drop off, the supplier’s share price has slowly clawed its way up again, albeit only slightly, ending the month at SEK107.80 at the close of play on 29 February.