Catena Media has recorded strong, across-the-board growth in its full-year 2018 results, with the affiliate network remaining on course to meet its 2020 corporate guidance strategy.
It was a strong end to the year for the firm, with increased Q4 2018 revenues of €27 million (Q4 2017: €20m), supporting a 17% EBITDA increase of €12 million (Q4 2017: €10m).
The process of transitioning from a distinct acquisition strategy to an increased focus on organic growth is progressing and the results have already been favourable, with clear indicators that we are on the right path,” explains CEO Per Hellberg.
“One of our largest products, AskGamblers, almost doubled its sales in 2018; the expansion of existing brands to territories such as Japan is returning positive signals; and the setting-up of operations in the US is progressing as planned and, at the same time, the company’s cost trend there has begun to decelerate. We experienced a short-term decline in the UK during the quarter that impacted earnings negatively, but that has now been corrected and turned in the right direction.”
Catena also disclosed increased full-year 2018 group revenues of €105 million (2017: €67m), in which the network details that organic assets contributed roughly 23% of revenue generation.
There was also a group EBITDA increase to €48 million (up 47% on FY2017’s €33 million), with the company declaring net cash generated from corporate activities of €48 million (FY2017: €33 million).
Discussing plans and opportunities in the US, Hellberg added: “We see an increasing number of operators preparing to launch, which should lead to increased demand for leads and continued high pricing for them.
“West Virginia is now the second state to come online after New Jersey, and Pennsylvania is also expected to launch in the spring 2019. Beyond that, though, the number of states seeking to regulate online gambling is increasing faster than anticipated.
“Various legal processes are, however, in progress to further regulate online gambling in various ways. However, based on what we know today, we perceive nothing that changes our view of the growth potential the US offers us. In other words, the future remains bright.”
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