Catena Media Q presentation

Transcription

1 The image part with relationship ID rid2 was not found in the file. Catena Media Q presentation A successful quarter with strong underlying developments

2 Agenda Q2 Highlights Speeding up innovation Events during and after Financials Q&A Robert Andersson, CEO

3 Q2 highlights Revenues of 15.1 million with record search revenues and record earnings EBITDA margin (adj.) 53%, an improvement from 50% in the first quarter EBIT margin (adj.) 47%, an improvement from 46% in the first quarter About 60% of the revenue comes from regulated markets Our focus on revenue share instead of CPA continues Slow sport season impacted mainly paid revenue Dutch regulatory changes had limited impact on the search revenue NDC s at all time high, reaching 91,222, up 13% from previous quarter

4 Q2 highlights Highest rate of product and channel innovation ever Move to midcap on track for H2

5 MEUR Total Revenue MEUR Adj, Profit 60% 53% Regulated revenue Adj EBITDA Margin 92% 58% YoY increase in NDC s YoY Revenue growth % MEUR Cash and Cash equivalents Perpetual revenue

6 Move to new HQ With the move to the new office we will be able to continue to grow and build our already strong culture, while making it easier to attract top talent. The new office features: 4,500 sqm of space Capacity for up to 450 people Top notch kitchen where staff is served complimentary healthy food Plenty of creative spaces Gym and recreation facilities

7 The image part with relationship ID rid2 was not found in the file. Catena Media Q presentation Speeding up innovation. Most products and channels launched. Ever.

8 Speeding up product innovation Quickspincasinos.com in cooperation with game developer Quickspin. Agreement signed with supplier Betsoft Re-launch of johnslots.com, already resulting in traffic and conversion uptake in addition to launching JohnSlots in German Launch of livebetting.se

9 Speeding up product innovation Gamerbetz joint venture with Gamerz, a global esports reality TV show

10 Speeding up product innovation Sports show launched in August

11 Speeding up channel innovation Launch of the podcast Uppsnack med Sladjan och Jonas, quickly becoming one of the most listened to sports podcast in Sweden Launch of a new YouTube channel for slots reviews with videos featured on various sites

12 Speeding up channel innovation Facebook and PPC Successful applications and granted licenses to promote SBAT.com, AskGamblers.com, rightcasino.com and JohnSlots.com in the UK version of Facebook Now allowed to post and advertise on Facebook UK with the above sites as sender of commercial gaming messages With the acquired licenses, Catena is in good position to gain licenses to more regulated markets Now approved for US (NJ) advertisement on Facebook UK Google license has opened the door to more PPC for additional UK facing money sites, leading to a doubling in traffic to the UK site PPC focus on value keywords rather than larger volume, to amplify and create synergies with the SEO efforts

13 Events, during, and after. Q2 2017

14 Events during Q2 In May, Catena Media acquired the assets of Online Media, a UK-based, fast-growing sports betting affiliate with a strong position within display marketing. Also in May, Catena Media acquired newcasinos.com and its related affiliate assets. Newcasinos.com specialises in reviewing and rating new online casinos, the main markets being the UK, Sweden and Norway. In June, Catena Media acquired the casino affiliate sites MrGamez.net and Spielekiste.de, focusing on German-language casino sites. Also in June, Catena Media completed a tap issue of EUR 50 million under the Parent Company s outstanding maximum EUR 100 million senior secured callable floating rate bond issue due in September 2019 In June 2017, 93,275 new shares in the Parent Company were issued to be utilised as part settlement of the first earn-out payment for the US asset acquisition.

15 Events after Q2 In July 2017, Catena Media acquired the award-winning sports affiliate Bettingpro.com. It is a highly-regarded publisher of sports news, tips and betting advice with a focus on acquiring leads for regulated UK and Australian gaming operators. The acquired assets are a great fit in our sportsbook portfolio and complements our existing offer perfectly. Launch of AskFans.co.uk and Livebetting.se

16 Financials Q2 2017

17 Attractive and scalable business model Catena Media has been able to scale up its business operations and grow its revenue significantly without having to increase its cost base at the same pace. The larger Catena Media becomes, the more it can benefit from economies of scale

18 Record in New Depositing Customers

19 Transforming the revenue model: Building long-term strategic value Revenue share Quarterly average share of revenues CPA Flat fees

20 Strong business momentum

21 Revenues April June 2017 Search revenues at all time high All time high search revenue in Q2 Revenues totalled 15.1 MEUR, a YoY increase of 58% Paid revenues impacted by seasonality (lack of sporting events)

22 Earnings April June 2017 Record earnings Adjusted operating profit increased by 41% compared to Q Shifting trend relating to operating margin due to the strategic decision to focus on revenue share instead of CPA Dutch regulatory effect impacted profit, but had limited overall impact Apr-Jun Full year EUR, Adj. operating profit 7,064 5, Adjusted operating profit Adj. operating margin 47% 52% 53% Profit before tax 5,801 4, Earnings per share, EUR (bef. dilution)

23 Expenses April June 2017 Strong cost control leads to improved margins Continuing to increase organizational efficiency Although Increase in OPEX and personnel expenses continues, it s at a slower pace than before. Reduction in paid media spend due to slower sport season One-off costs relate to bond issue in June and the move to NASDAQ Stockholm

24 Financial position as of 30 June 2017 Strong balance sheet allows for quick execution on M&A opportunities Continued strong cash position post bond issue Current bond 100m euro valued at market-rate Balance Sheet Key Highlights 30 Jun 31 Dec '000 '000 ASSETS Non-current assets Goodwill 7,333 7,333 Other intangible assets 161,422 71,168 Total non-current assets 170,542 79,267 Current assets Cash and cash equivalents 50,713 44,713 Total current assets 66,514 57,875 Total assets 237, ,142 Total equity 68,385 53, MEUR 100 MEUR Liabilities Non-current liabilities Borrowings 102,214 50,500 Amounts committed on acquisition 14,476 6,195 Total non-current liabilities 120,180 58,866 Current liabilities Amounts committed on acquisition 45,307 20,741 Trade and other payables 2,508 1,739 Total current liabilities 48,491 24,441 Total liabilities 168,671 83,307 Total equity and liabilities 237, ,142

25 Summary Key take-aways Continued strong organic growth with record search revenues and NDC intake Strong cost control Building long term value by focusing on perpetual revenues and regulated markets More sensitive to seasonality due to more sports assets Strong product output and channel innovation Solid M&A pipeline Well positioned for continued growth

26 Q&A

27 Thank you Q3 will be presented Nov 17, 2017