Catena Media revenue hits all-time high in Q2 despite “tough quarter”

Catena Media has reported record revenue of €27.8m (£27.4m) in the second quarter – up 17% year-on-year (YoY) – as casino helped plug the gap left by sport’s disappearance due to coronavirus and lockdowns.

Casino accounted for 76% (€21.2m) of Q2 revenue, compared with 56% (€13.2m) in Q2 2019, while sports’ share slid from 38% a year ago to 18% (€5m).

Of the €27.8m revenue generated in Q2, €25.8m was derived from organic search, which was an all-time high – up 28% YoY and 8% quarter-on-quarter.

However, paid revenue tumbled 42% from €2.8m in Q2 2019 to €1.6m, while subscription revenue dropped 40% from €700,000 to €400,000.

The Malta-based business also revealed that Q2 EBITDA was €12.5m, while operating profit for the quarter came in at €9.3m.

When combining Q2 with Q1, Catena Media’s operating revenue was €54.5m, up 9.3% YoY, while adjusted EBDITA increased 34% to €27.7m. Operating profit was €19m.

Revenue from organic search in H1 hit €49.8m – a YoY rise of 19% – and paid search revenue amounted to €3.9m, down more than 38% on last year. Subscriptions plunged 53.4%.

With the sporting calendar decimated by coronavirus and lockdowns for much of Q2, the casino segment was the key driver as revenue hit new heights for flagship site AskGamblers, Catena Media’s Japanese sites, and the US. In fact, it was the “best quarter ever” for the US arm.

Catena Media reported that casino “performed strongly” in April and May across the business before returning to normal levels in June as sport began to return towards the end of the quarter.

 Traffic numbers was impacted “negatively” by a major Google update, but the business said conversion rates and revenue were not necessarily hit in the same way.

CEO Per Hellberg said he was proud of how the business “weathered a tough quarter” due to the impact of the global pandemic on sporting fixtures.

He added: “Our company set records this quarter with an all-time high in profits, 17% in total revenue growth compared to last year, and a record in organic search revenues.”

Meanwhile, NDCs totalled 104,326 in Q2, which was an increase of 4% over the 99,981 NDCs the company attracted in Q2 2019. However, NDCs were also down around 13% on Q1 2020, while H1 NDCs dipped 0.1% YoY to 223,855.

Looking ahead to Q3, management reported revenue for July rose over June and by 7% YoY, and that the affiliate is gearing up for the launch of sports betting in Tennessee, Virginia and Michigan (casino as well).

On top of this, Catena Media, which is live in eight US states, is preparing to introduce AI-generated content in Q3 and a new app focused on sports at some point in the second half of the year.

Shares in Catena Media were down more than 6% in early trading.