Catena Media US business returns quarterly revenues to growth
US accounts for 17% of affiliate giant’s overall revenues in Q3 2019 as it increases its investment in the market
Affiliate firm Catena Media returned to sequential growth in Q3 after three consecutive quarters of losses.
Group CEO Per Hellberg said the 11% quarter-on-quarter revenue increase was a result of strong growth in the US, with the market representing 17% of the firm’s total revenues this year.
However overall revenues were down 5% year-on-year in Q3 to $27.3m, while EBITDA also decreased 11% to $35.5m.
Catena Media group CEO Per Hellberg
Hellberg said Catena had increased its investment in the US to “maintain [its] dominant position for years to come.”
“The investment is mainly focusing on content creation and efficiency improvement, and we expect to continue these investments throughout 2020,” Hellberg said.
During the quarter the firm saw delayed growth in Pennsylvania as a single operator market resulted in less affiliate traffic in the early stages of the state’s launch.
“Considering the slow start with fewer operators online, we are still very satisfied with our market share and revenue development,” Hellberg said.
The European casino market remained problematic for Catena Media, particularly in the UK and Sweden, with no quarter-on-quarter upturn expected aside from seasonality.
Hellberg added: “I’m confident that the efforts we have taken are pointing us towards a bright future, but first we need to close this year.
“With the current momentum and the product improvements we have made, together with the market expansion, it looks promising for the fourth quarter.”