“Exceptional” US performance to drive revenue growth at Catena Media in Q3

In a preliminary results announcement, Catena Media said revenue for the three months to 30 September is expected to reach an estimated €33.1m (£28.0m/$38.5m), which would be 33% higher than the third quarter of 2020.

Revenue from the North American market is forecast to increase by approximately 124% year-on-year and account for 51% of total group revenue for the period.

Catena Media also said it expects to see organic growth of 23%, though this would be 34% when excluding the now-regulated German igaming market, where revenue was down by 62% and accounted for 4% of overall revenue in Q3.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is forecast to increase by 33% year-on-year to an estimated €16.0m, corresponding to a margin of 48%.

However, the business added that operating profit will be negatively impacted by a non-cash impairment of intangible assets in accordance with IAS 36, resulting in an estimated write down of €49.4m. Some €42.8m of the write down pertains to German sports assets acquired between 2016 and 2018, and €6.6m for French sports assets acquired in 2018.

“Q3 was an exceptional quarter with September revenue breaking our monthly all-time high,” Catena Media chief executive Michael Daly said “This was the result of our strategic investment in organic development, particularly in North America, and was supported by two recent acquisitions in the US and the opening of the igaming market in Arizona. 

“The impairment charge adjusts our European business to new market realities following a review by the management team and our focus on transforming the business to reach maximum potential.”

Catena Media plans to publish its full results for the third quarter on 17 November.