Despite increased operating revenue of 28%, established affiliate Catena Media has been negatively impacted by non-cash impairment expenses for the German and French sports markets.
Catena’s total revenue of $136.1m is made up largely of search revenue, which accounts for $129m of total revenue for 2021.
Catena points out that organic growth would have been 37%, rather than 24%, were it not for impairments to the sports betting and casino markets in Germany.
There was also an increase of 32% to Catena’s new depositing customers (NPCs), while a 116% increase from North American casino and sports betting accounted for 50% of group revenue.
Despite impairments to Catena, CEO Michael Daly appears keen to look forward, focusing on the short-term gains and investments made in Q4 of 2021.
Daly claims Q4 investment will help Catena to develop long-term growth plans, and these investments are evident; with a 4% increase to adjusted EBITDA corresponding to an adjusted EBITDA margin of 40% –reflecting growth investments of €2.5m ($2.83m).
Catena’s investments are also evidenced in its buyback programme, with repurchases made on 817,700 of its original shares between November 17 to December 3.
Daly notes these planned investments are vital for Catena’s “growth plans, and on preparing for future market launches in North America in 2022.”
However, much like previous 2021 quarters, Catena’s bottom line was affected in the quarter (Q4).
Daly commented: “Revenue pressure on sports betting operators in Europe squeezed our margins there. In Japan, the easing of Covid-related restrictions caused a drop in online casino sessions as users seized the opportunity to spend more time outside home.”
Yet, despite these losses on revenue, Daly said he “confidently expect[s] revenue in North America to surpass $100m in 2022.”
