Industry publisher Catena Media, listed in Sweden, has announced that they are securing’ alternative revenue streams’ for their sports business, as the COVID-19 pandemic continues to threaten global sports fixtures.
Publishing a trading update for January–February 2020, Catena Media announced that sports accounted for 35% off its sales generated during the span, which saw a 5.7% rise overall from € 17.1 million to € 18 million.
The casino business accounted for 59% of the company’s sales in the first two months of 2020, while the income from financial services accounted for 5%.
Catena Media said: Addressing the deficit of sporting events: “Due to the halt of several sports leagues, and postponement of major events across the globe, Catena Media is working closely with key operators to promote Sports events that are still running.
“To mitigate the shortfall in Sports revenue, the focus is to increase the Casino business by converting traffic from a number of sports-related sites into Casino revenue and holding back on low-margin media spend.”
The company emphasised that it is ‘closely following the global development of COVID-19 and its potential impact on the business’ and expects that the outbreak ‘will have no foreseeable negative long-term effects’.
Catena expected that the widespread postponement of sports equipment ‘may contribute with a positive effect in the future when they are rescheduled.’
Per Hellberg, CEO at Catena Media, commented: “The world is facing an unusual and challenging situation due to COVID-19. Catena Media’s largest business segment, Casino, represented 73% of EBITDA during January and February, is performing well and shows a positive development under the current circumstances.
“Several sport events have been cancelled or postponed, and it is uncertain for how long this will last, but we are holding back on costs and finding alternative revenue streams for the Sport segment. Provided that the sports events start up after the summer break, our target remains unchanged, to reach double-digit profitable growth in 2020.”
EBITDA increased year-on-year by 16.6 percent to € 8.6 million over the two-month period, an increase from € 7.4 million.
Catena Media had not made any significant investments over the two-month period, resulting in € 19.2 m in cash and cash equivalents and a total interest-bearing debt status of € 162.5 m.