Catena Media Q2 2017 presentation - A successful quarter with strong underlying developments
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The image part with relationship ID rId2 was not found in the file. Catena Media Q2 2017 presentation A successful quarter with strong underlying developments
Agenda
§ Q2 Highlights
§ Speeding up innovation
§ Events during and after
§ Financials
§ Q&A
Robert Andersson, CEO
2017 – Q2
Q2 highlights
§ Revenues of €15.1 million – with record search revenues and record earnings
§ EBITDA margin (adj.) 53%, an improvement from 50% in the first quarter
§ EBIT margin (adj.) 47%, an improvement from 46% in the first quarter
§ About 60% of the revenue comes from regulated markets
§ Our focus on revenue share instead of CPA continues
§ Slow sport season impacted mainly paid revenue
§ Dutch regulatory changes had limited impact on the search revenue
§ NDC’s at all time high, reaching 91,222, up 13% from previous quarter
2017 – Q2
Q2 highlights
§ Highest rate of product and channel innovation ever
§ Move to midcap on track for H2
2017 – Q2
15.1MEUR
7.1
MEUR
Total Revenue Adj, Profit
60%
Regulated revenue
53%
Adj EBITDA
Margin
92%
YoY increase
58%
YoY Revenue
in NDC’s growth
50.7
MEUR Cash and
64%
Perpetual revenue
Cash equivalents
2017 – Q2
Move to new HQ
With the move to the new office we will be able to
continue to grow and build our already strong
culture, while making it easier to attract top talent.
The new office features:
• 4,500 sqm of space
• Capacity for up to 450 people
• Top notch kitchen where staff is served complimentary
healthy food
• Plenty of creative spaces
• Gym and recreation facilities
2017 – Q2
The image part with relationship ID rId2 was not found in the file. Catena Media Q2 2017 presentation Speeding up innovation. Most products and channels launched. Ever.
Speeding up product innovation
§ Quickspincasinos.com in cooperation with game
developer Quickspin. Agreement signed with supplier
Betsoft
§ Re-launch of johnslots.com, already resulting in traffic
and conversion uptake – in addition to launching
JohnSlots in German
§ Launch of livebetting.se
2017 – Q2Speeding up product innovation
§ Gamerbetz – joint venture with Gamerz, a global e-
sports reality TV show
2017 – Q2Speeding up product innovation
Sports show launched in August
2017 – Q2Speeding up channel innovation
§ Launch of the podcast Uppsnack med Sladjan och Jonas,
quickly becoming one of the most listened to sports
podcast in Sweden
§ Launch of a new YouTube channel for slots reviews with
videos featured on various sites
2017 – Q2Speeding up channel innovation
Facebook and PPC
§ Successful applications and granted licenses to promote SBAT.com, AskGamblers.com,
rightcasino.com and JohnSlots.com in the UK version of Facebook
§ Now allowed to post and advertise on Facebook UK with the above sites as sender of commercial
gaming messages
§ With the acquired licenses, Catena is in good position to gain licenses to more regulated markets
§ Now approved for US (NJ) advertisement on Facebook
§ UK Google license has opened the door to more PPC for additional UK facing money sites, leading to a
doubling in traffic to the UK site
§ PPC focus on value keywords rather than larger volume, to amplify and create synergies with the SEO
efforts
2017 – Q2Events, during, and after. Q2 2017
Events during Q2
§ In May, Catena Media acquired the assets of Online Media, a UK-based, fast-growing sports betting
affiliate with a strong position within display marketing.
§ Also in May, Catena Media acquired newcasinos.com and its related affiliate assets. Newcasinos.com
specialises in reviewing and rating new online casinos, the main markets being the UK, Sweden and
Norway.
§ In June, Catena Media acquired the casino affiliate sites MrGamez.net and Spielekiste.de, focusing on
German-language casino sites.
§ Also in June, Catena Media completed a tap issue of EUR 50 million under the Parent Company’s
outstanding maximum EUR 100 million senior secured callable floating rate bond issue due in
September 2019
§ In June 2017, 93,275 new shares in the Parent Company were issued to be utilised as part settlement of
the first earn-out payment for the US asset acquisition.
2017 – Q2Events after Q2
§ In July 2017, Catena Media acquired the award-winning sports
affiliate Bettingpro.com. It is a highly-regarded publisher of
sports news, tips and betting advice with a focus on acquiring
leads for regulated UK and Australian gaming operators. The
acquired assets are a great fit in our sportsbook portfolio and
complements our existing offer perfectly.
§ Launch of AskFans.co.uk and Livebetting.se
2017 – Q2Financials Q2 2017
Attractive and scalable business model
Catena Media has been able to scale up its business operations and grow its revenue significantly without having to
increase its cost base at the same pace. The larger Catena Media becomes, the more it can benefit from economies
of scale
2017 – Q2Record in
New Depositing Customers
2017 – Q2Transforming the revenue model:
Building long-term strategic value
Revenue share
Quarterly average share
of revenues
CPA
Flat fees
2017 – Q2Strong business momentum
2017 – Q2Revenues April–June 2017
Search revenues at all time high
§ All time high search revenue in Q2
§ Revenues totalled 15.1 MEUR, a YoY increase of
58%
§ Paid revenues impacted by seasonality (lack of
sporting events)
2017 – Q2Earnings April–June 2017
Record earnings
§ Adjusted operating profit increased by 41%
compared to Q2 2016
§ Shifting trend relating to operating margin due to the
strategic decision to focus on revenue share instead
of CPA
§ Dutch regulatory effect impacted profit, but had
limited overall impact
Apr-Jun Full year Adjusted operating profit
EUR, 000’ 2017 2016 2016
Adj. operating profit 7,064 5,011 21.027
Adj. operating margin 47% 52% 53%
Profit before tax 5,801 4,872 17.509
Earnings per share, EUR (bef. dilution) 0.102 0.089 0.319
2017 – Q2Expenses April–June 2017
Strong cost control leads to improved
margins
§ Continuing to increase organizational
efficiency
§ Although Increase in OPEX and personnel
expenses continues, it’s at a slower pace than
before.
§ Reduction in paid media spend due to slower
sport season
§ One-off costs relate to bond issue in June and
the move to NASDAQ Stockholm
2017 – Q2Financial position as of 30 June 2017 Balance Sheet – Key Highlights 30 Jun
2017
31 Dec
2016
€ '000 € '000
Strong balance sheet allows for quick ASSETS
Non-current assets
execution on M&A opportunities Goodwill
Other intangible assets
7,333
161,422
7,333
71,168
Total non-current assets 170,542 79,267
§ Continued strong cash position post bond issue Current assets
Cash and cash equivalents 50,713 44,713
§ Current bond 100m euro valued at market-rate Total current assets 66,514 57,875
Total assets 237,056 137,142
Total equity 68,385 53,835
Liabilities
Non-current liabilities
Borrowings 102,214 50,500
Amounts committed on acquisition 14,476 6,195
Total non-current liabilities 120,180 58,866
59.8 100 Current liabilities
Amounts committed on acquisition 45,307 20,741
MEUR MEUR Trade and other payables 2,508 1,739
Total current liabilities 48,491 24,441
Total liabilities 168,671 83,307
Total equity and liabilities 237,056 137,142
2017 – Q2Summary
Key take-aways
§ Continued strong organic growth with record search revenues and NDC intake
§ Strong cost control
§ Building long term value by focusing on perpetual revenues and regulated markets
§ More sensitive to seasonality due to more sports assets
§ Strong product output and channel innovation
§ Solid M&A pipeline
§ Well positioned for continued growth
2017 – Q2Q&A
Thank you Q3 will be presented Nov 17, 2017
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