Catena Media Year-end report January–December 2016

Fourth quarter of 2016

  • Revenues totalled EUR 12.29 million (5.90), an increase of 108 percent compared with the same quarter for the previous year.
  • Adjusted operating profit excluding non-recurring IPO and bond expenses amounted to EUR 6.18 million (3.62), corresponding to an adjusted operating margin of 50 percent (61). Operating profit increased to EUR 5.75 million (2.90), corresponding to an operating margin of 47 percent (49).
  • Adjusted profit before tax excluding non-recurring IPO and bond expenses totalled EUR 4.87 million (3.62), whilst profit before tax amounted to EUR 4.44 million (2.90).
  • New depositing customers (NDCs) totalled 67,023 (24,779), an increase of 170 percent compared with the same quarter for the previous year and an increase of 19 percent when compared to the previous quarter.
  • Earnings per share amounted to EUR 0.079 (0.063).

Year 2016

  • Revenues totalled EUR 40.05 million (14.94), an increase of 168 percent compared to the previous year.
  • Adjusted operating profit excluding non-recurring IPO and bond expenses amounted to EUR 21.03 million (10.15), corresponding to an adjusted operating margin of 53 percent (68). Operating profit increased to EUR 18.65 million (8.98), corresponding to an operating margin of 47 percent (60).
  • Adjusted profit before tax excluding non-recurring IPO and bond expenses totalled EUR 19.89 million (10.16), whilst profit before tax amounted to EUR 17.51 million (9.00).
  • NDCs totalled 204,633 (69,331), an increase of 195 percent compared with the previous year.
  • Earnings per share amounted to EUR 0.319 (0.199). 

Comment from Robert Andersson, CEO

Another year of success with strong growth and solid results

2016 was the most eventful and successful year to date for Catena Media with continued strong growth and solid results. Looking back at what we have accomplished over the last twelve months is rather impressive. We have completed and integrated seven strategic acquisitions, entered three new markets, and concurrently broadened our offering, reached over 204,000 NDCs and increased the number of employees from 70 to 190. Moreover, we achieved two important milestones with the successful listing of Catena Media´s shares on Nasdaq First North Premiere and the issue of a three-year secured bond loan.

Another successful quarter

The fourth quarter was the company´s strongest ever with a top line growth of 108 percent when compared to the same quarter last year, coupled with a solid operating margin of 50 percent. As a result of the heavy investment in Paid media, as well as our investments in technology and the recruitment of new employees, our margin declined slightly. This is a natural consequence of our current strategy, which is focused on growth and increase in market share. Given the pace at which Catena Media is growing, being at the forefront of technology is an absolute necessity. We have therefore decided to invest further in technical development by reinforcing our Technical department with two outsourced teams in Budapest.

While making two strategic acquisitions in the UK, we further advanced our market presence in the biggest iGaming market in Europe. Through the acquisition of SBAT, Catena will strengthen its focus on sports, as well as its social media know-how, and through Casinouk.com we have the opportunity to expand our offering in Paid media and Search.

In terms of new markets, we entered the US in January by acquiring regulated affiliate assets targeting the Poker and Casino markets in New Jersey and Nevada. Following the acquisition, Catena Media adds three new verticals to its business. In addition to Poker, we also acquired websites targeting eSports and Daily Fantasy Sports. We are very excited about this opportunity, which makes Catena Media the largest regulated casino affiliate in the US, and puts us in pole position to take advantage of further re-regulation in what has the potential to become the world’s largest iGaming market.  Following this acquisition, about 50 percent of Catena Media´s revenue will derive from regulated markets.  

We are also very pleased to note continued growth in our acquired assets and in the Sportsbook segment that we entered earlier this year. In addition, during December, we reached a record of 24,000 NDCs in one single month on our different sites.

Looking forward

I am highly positive and confident as we enter 2017. Our move to the Nasdaq Mid Cap list is progressing as planned and we aim to finalize the transition within the first half of 2017. As previously, our focus remains on delivering in line with our financial targets and on continuing to grow in the same successful way both through organic growth and through acquisitions across existing and new geographic markets.

To conclude, I am really proud of what we have achieved in 2016. Catena Media is an extraordinary company with extraordinary people and together we will continue this exciting journey towards becoming the world´s number one provider of high-value iGaming leads.

This information is information that Catena Media PLC is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 15 February 2017, at 07:00 a.m. CET.  

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