Catena Media has praised continued progress across a number of core strategic markets, despite 2020’s exceptional circumstances, as the firm exits a first half of the year that is “one for the history books”.
Reporting increases across several key metrics, Catena has lauded a best ever quarter for its US business despite the lack of sports, as well as its casino segment taking the mantle of key revenue driver and all-time highs in revenue being delivered for AskGamblers, the US and Japanese sites.
Reporting continued growth across the latter, outperforming group-wide expectations, the US, primarily driven by key markets Pennsylvania and New Jersey, also saw its best-ever quarter, with casino and social casino turning into key drivers during the COVID-19 shutdown.
Furthermore, as part of its growth strategy the firm asserts that it has “continued to transform our business and invested in future growth regions such as the US, Latin America, and Asia,” with encouraging traffic through its BettingPro sports brand in LatAm highlighted.
“This also makes our second quarter report all the more remarkable. Ordinarily, the second quarter is a weak one seasonally, and even more so this year because of the sudden lack of sports events,” stated Per Hellberg, CEO of Catena Media.
“And yet our company set records this quarter with an all-time high in profits, 17 per cent in total revenue growth compared to last year, and a record in organic search revenues.”
Revenue during 2020’s second quarter rose 17 per cent to €27.8m (2019: €23.7m), with the firm’s casino segment representing 76 per cent (€21.2m) of the total figure, sports making up 18 per cent (€5m) and financial services the remaining six per cent (€1.6m).
Operating profit for the quarter increased 64.7 per cent to €9.97m (2019: €6.05m), adjusted EBITDA was boosted 56 per cent to €14.8m (2019: €9.5m) and new depositing customers nudged forward four per cent to total 104,326 (2019: 99,981).
For the first half of the year revenue increased nine per cent year-on-year to €54.5m (2019: €49.8m), operating profit surged 37.3 per cent to €19m (2019: €13.8m), adjusted EBITDA rose 34 per cent to €27.7m (2019: €20.7m) and new depositing customers dropped fractionally to 223,855 (2019: 223,988).
Elaborating on future ambitions, Hellberg closed: “While the casino business takes its customary summer holiday, we expect our sports business to continue growing again in the third quarter: from the re-opening of sports, in particular European football leagues in August, to a planned peak when the NFL kicks off in September in the US.
“We are mindful, however, that there could be further impacts due to the pandemic and are closely monitoring the situation. Given this irregular sports season in the US, some Q3 revenues might be pushed into Q4, which is why we are focusing on the second half as a whole. With the operational challenges brought by the pandemic now fully under control, we continue to focus our efforts on improving and creating value for the future.
“With that, we will continue our investments in future growth during the rest of the year and beyond. Given the extraordinary circumstances over the last few months, our teams did a great job in maintaining our position, with rapid adaptability, good cost control and operational efficiency.
“Halfway through the year, we have the peak season of the US market ahead of us, and hopefully a growing sports business around the world again. Finally, I am very proud about how we weathered a tough quarter.”