Catena outlines US affiliate expansion plans
Affiliate marketing giant Catena Media has targeted US dominance after enjoying a record-breaking start to 2018.
New chief executive Per Hellberg said he has set his sights on taking the firm to “new heights” after it posted year-on-year financial growth in the first half.
Hellberg, who took on the role in June, is positive about what he has seen so far at Catena and, reflecting on the first-half results, said he is optimistic about further growth.
Revenue in the six months to June 30 amounted to €50m (£44.6m/$56.9m), up 65% on the corresponding period last year, while EBITDA also hiked 67% to €22.5m. However, a slight drop in EBITDA margin, attributed to higher operating expenses caused by US investment, has led to a drop in the company’s share price on the Stockholm Nasdaq.
“The team and I are strongly motivated to take Catena Media to new heights,” Hellberg said.
The company acquired New Jersey igaming affiliate BonusSeeker.com and Dreamworx Online, a company active in the sports, casino and financial services markets, during the period.
Hellberg said the company is making “considerable investments [in the US], acquiring companies offering a strong foothold and recruiting exceptional talent”.
He added: “Our US sites already have thousands of daily visitors and we are ready to provide quality leads to new operators.
“With economies of scale resulting from these initiatives set to substantially increase our revenues in the long term, we are carefully taking into account the associated short-term decrease in margins.
The results announcement comes on the back of further merger and acquisition activity at Catena, including the purchase of ASAP Italia of €16m just before the end of the first half.
Other buys in the period included Australian stock market news and analysis website TheBull.com.au, specialist racing website GG.co.uk, and affiliate assets in both French sports betting website ParisSportifs.com and German financial lead generator BrokerDeal.de.