In publishing its interim for H1 2019 (period ending June 30), Catena Media Plc’s governance information that the firm is’ working hard to adapt to fresh market circumstances’ facing all incumbents in the sector.
The affiliate marketing network, which is listed in Stockholm, reports tough trading in Q2 2019, facing seasonal adjustments, regulatory headwinds and’ high casino payouts.’
Catena posted a flat H1 2019 revenue performance of € 49.5 million (H12019: € 50 million) as the company records decline across all core reporting metrics and KPIs.
“The second quarter is usually 5-10% lower than the first quarter. It’s a seasonal pattern that is component of our prediction already. This year, however, badly impacted by legislative modifications in the United Kingdom and France, but we did not bid our time–instead, we pulled out all the stops to prepare for a powerful second half, “Catena Media, CEO, Per Hellberg explains.
Catena points out that its affiliate services have been affected by new UK KYC requirements and enforced product changes in the French market, which have affected the volumes of’ new depositing customers (NDC)’ to 225,000 (H1 2018: 270,000).
The NDC slowdown combined with’ high player pay-offs’ would see the company record a decline in the EBITDA period from 8% to € 20.6 million (H12018: € 22.5 million) with the company’s EBITDA margin falling to 41% (45%).
Operating within a number of’ saturated markets,’ Catena governance details the company’s move to diversify its’ income channels ‘ offering player retention services to its operator clients.
Ahead of the start of the 2019/2020 NFL season, Catena continues to expand its affiliate portfolio to prepare globally for the new US media property launches in H2.
Catena will launch a fully translated Japanese, Spanish and Portuguese version of AskGamblers.com by the end of Q3 2019 trading in support of the company’s global efforts.
“Markets are increasingly controlled and changing, and this is going to continue. As we have often said, this is useful for Catena Media in the long run; markets tend to consolidate, and therefore important affiliates grow bigger, but it takes time and we need to act to capture this development.” “This year we are being taught that we need to continuously enhance current products for this purpose. In addition, we need to add fresh markets to prevent significant regulatory changes affecting our short-term outcomes, as they did this year in the first and second quarters. Our product improvements and market expansions are scheduled to begin demonstrating beneficial impacts from the third quarter and although we are in the early quarter, it looks good