Catena expecting record revenue and profit for Q2
Catena Media has announced it expects to report a 17 per cent increase in revenue for Q2 to achieve a new quarterly record.
Malta.- Lead-generation company Catena Media has announced it expects to post record revenue and profit for the second quarter of 2020.
The affiliate company has posted a trading update announcing that it expected to report a year-on-year quarterly revenue increase of 17 per cent to €27.7m.
The record quarterly results would be largely due to casino performance. The company’s AskGamblers brand plus its Japanese and US businesses all saw their highest revenue yet in the quarter.
The company said it had seen “tremendous growth rates” in the US with land-based casinos closed and sports events cancelled.
The cancellation of sporting events caused some impact on Catena’s sports betting business. It was also impacted by an update to Google’s search ranking algorithms at the start of May, which negatively affected traffic for some brands, although it boosted traffic to Catena’s US business.
Catena said the number of new depositing customers in the quarter was 104,000 – up by 4 per cent year-on-year, but down 13 per cent on the first quarter due to the pandemic’s impact on sports betting.
The company said it expected adjusted EBITDA for the quarter to reach between €14.5million and €14.8million. Even the lowest end would be a record quarterly profit, and an increase of 52 per cent on the same period in 2019.
The company said that on top of the growth in the casino business, it had grown profit through higher margins, cost control, lower direct costs because of the lack of sports, and a shift to more organic revenue.
Chief Executive Per Hellberg said: “Given the extraordinary global circumstances, Q2 was a very challenging quarter, so we are happy to report that the measures taken by the company helped us achieve the best quarter ever in the history of the company.”
Catena intends to publish full results for the second quarter on August 19.
