Catena Media - interim report Q3 2016
Continuous strong growth and rising profits
Third quarter of 2016
- Revenues totalled EUR 10.73 million (4.06), an increase of 164 percent compared with the same quarter for the previous year.
- Adjusted operating profit excluding non-recurring IPO and bond expenses amounted to EUR 5.68 million (3.06), corresponding to an adjusted operating margin of 53 percent (75). Operating profit increased to EUR 4.65 million (2.66) corresponding to an operating margin of 43 percent (66).
- Profit before tax amounted to EUR 4.37 million (2.67) and excluding non-recurring IPO and bond expenses totalled EUR 5.41 million (3.08).
- New depositing customers (NDC) totalled 56,352 (19,266), an increase of 192 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 0.07617 (0.05715).
First nine months of 2016
- Revenues totalled EUR 27.76 million (9.04), an increase of 207 percent compared with the same period for the previous year.
- Adjusted operating profit excluding non-recurring IPO and bond expenses amounted to EUR 14.85 million (6.53), corresponding to an adjusted operating margin of 53 percent (72). Operating profit increased to EUR 12.90 million (6.08) corresponding to an operating margin of 46 percent (67).
- Profit before tax amounted to EUR 13.07 million (6.10) and excluding non-recurring IPO and bond expenses totalled EUR 15.02 million (6.55).
- NDCs totalled 137,610 (44,833), an increase of 207 percent compared with the same period for the previous year.
- Earnings per share amounted to EUR 0.24002 (0.13411).
Comment from Robert Andersson, CEO
Catena Media’s sales growth continued to be strong. In September we reached 20,000 New Depositing Clients (NDCs) for the first time in a single month. Our strict cost control and strong revenue growth resulted in a rising operating profit during the quarter. I am also very pleased with the considerable interest shown in our September bond issue — an injection that gives us the financial strength to fuel our growth plans going forward.
Looking back on the third quarter, we note once again the continued high pace of Catena Media’s exciting journey. Revenues increased 164 percent compared with the same quarter for 2015. The third quarter was the first quarter that included the sports book vertical, where we noted strong organic growth from our own site, latestbettingsites.co.uk, while the newly acquired spelbloggare.se trended according to plan. During the quarter, we reached a strategically important milestone in September, when we reached 20,000 NDCs for the first time in a single month — solid evidence that we are on the right track in terms of sustainable growth in Catena Media.
As a result of the acquisition of Right Casino Media in late 2015, and our entrance into the sports book vertical, both with a focus on Paid media, our operating margin decreased somewhat during the first half of 2016. As a result of our focus on operational excellence, including strict cost control and operational leverage, we have succeeded in achieving an adjusted operating profit of EUR 5.68 million, a 13.4 percent increase compared to the second quarter. We have achieved this notwithstanding a continuous recruitment campaign, which has increased our operating expenditure.
During the quarter, we have made a number of top-level recruitments. The new Head of Legal, Head of Investor Relations and Communications and Chief Technical Officer are now in place. At the same time, the need for new talented employees remains high and there are currently around 30 vacant opportunities at Catena Media.
EUR 50 million to further fuel growth plans
During September, we issued a three-year secured bond loan of EUR 50 million maturing in September 2019. There was substantial interest in the bond — proof that we have managed to build investor confidence in Catena Media's business model and growth plans. As we announced previously, we intend to use the bond primarily for acquisition financing. This aligns well with our successful strategy and our financial targets that remain unchanged. In fact, after the end of the quarter, we acquired the UK-based SBAT, a social media sports news, betting and tips website. The acquisition is strategic in the sense that it strengthens our position in the UK, in Paid media as well as in regulated markets.
With continuous revenue growth, increasing operating profits, a rising margin, improved financial capabilities and an inspired team, we are well equipped to continue to build on Catena Media’s solid growth story.
Robert Andersson, CEO
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 November 17, 2016, at 07:00 a.m. CET.