Q1 Presentation, May 4th 2018

Transcription

1 Q1 Presentation, May 4th 2018

2 Presenters HENRIK PERSSON EKDAHL CEO PIA-LENA OLOFSSON CFO 2

3 Q1 Highlights Q1 REVENUES EUR 23.9m YoY 57% REVENUE GROWTH QoQ 19 % EBITDA (ADJ.) EUR 12.4m YoY 63% QoQ 12% EBITDA MARGIN 52 % NDC 133 K QoQ GROWTH 18 % YoY 66% JAN-MARCH % EUR 10.3m NET CASH OPERATING ACTIVITIES GROWTH YoY 3

4 About Catena Media CATENA MEDIA PROVIDES COMPANIES WITH HIGH-QUALITY ONLINE LEAD GENERATION. Catena Media provides companies with high-quality online lead generation. Through strong organic growth and strategic acquisitions, Catena Media has, since 2012, established a leading market position with approximately 300 employees in the US, Australia, Japan, Serbia, the UK, Sweden and Malta (HQ). Total sales first quarter 2018 reached EUR 23.9m. The company is listed on Nasdaq Stockholm Mid Cap. 4

5 5 Catena Media Business Model

6 Management 6 HENRIK PERSSON EKDAHL PER HELLBERG PIA-LENA OLOFSSON Acting Chief Executive Officer New Chief Executive Officer Chief Financial Officer LOUISE WENDEL ÅSA HILLSTEN MARKUS NASHOLM FIONA EWINS BROWN JOHANNES BERGH Head of Legal Head of Investor Relations Head of Mergers & Acquisitions HR Director Chief Operating Officer KLAS WINBERG OSCAR KARLSTEN NIKOLA TEOFILOVIC RICHARD GALE NIGEL FRITH MICHAEL DALY Chief Commercial Officer Chief Product Officer GM Belgrade GM UK GM of Finance GM of igaming US

7 7 Financials Q1 2018

8 NDCs in the first quarter Q K NDC +18 % QoQ NDC +66 % YoY 100, , ,322 91,222 80,421 47,530 56,352 67,023 32,634 Q Q Q Q Q Q Q Q Q

9 Strong Quarterly Revenue Growth Search revenue Paid revenue Other operating income +19% Q EUR 23,9m +19 % QoQ +57 % YoY +15% +24% -1% % % EURm % +33% % +37% % % % % Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 9

10 Revenue All revenue streams are growing Several new acquisitions relay more on cost per acquisition model Catena Media can only use cost per acquisition model in the US market An application to enter into revenue share transactions in New Jersey pending Favourable sports results in Q1 leading to revenue share being temporarily unfavourable Catena Media do not give forecasts Revenue for the first quarter 2018 x 4 = Run rate 100% 0% FLAT FEES 10% COST PER ACQUISITION 39% REVENUE SHARE 51% REVENUE STREAMS Q1 EURm 14.9 CAGR 113 % RUN RATE Q1-18 REVENUES In the period from 2015 to 2017, Catena Media has increased its revenue by EUR 52.7m, equalling a CAGR (compounded average growth rate) of 113 percent. Run-rate is the Q revenues multiplied by

11 Regulated Markets and Organic Growth 65 % of revenues come from locally regulated or taxed markets. Organic growth in search revenue during Q was 30% YoY 87 % EURm ,5 REGULATED OR TAXED 10.9 The Swedish market is today not regulated but is expected to be regulated by January 2019 Q GROWTH Q

12 Segments Performance REVENUE igaming 95% REVENUE FINANCE REVENUE 5% TOTAL 100% Q CASINO 66% OF REVENUES Q FINANCE 5% OF REVENUES Q SPORTS BETTING 29% OF REVENUES EBITDA (ADJ.) EBITDA MARGIN (ADJ.) NDCs % 91% 52%

13 Adjusted EBITDA Movement Q Q Catena Media has improved it s adjusted EBITDA margin from 49.6% in Q to 52.0% in Q ,9% 1,4% -4,9% PPC costs have decreased compared to revenue to focus on maximizing the positive margin 49,6 % 52,0 % Minor increase in personnel costs proves economies of scale Other operating expenses are higher due to increase in professional fees due to GDPR and applications for the US market Q PPC COSTS PERSONNEL EXPENSES OTHER OPERATING EXPENSES Q

14 Financial Costs January to March 2018 EUR 12.4m EBITDA (ADJ) -> EUR 10.4m REPORTED EBITDA Non recuring costs in Q refers to bond costs (EUR 1.9m) and reorganisation costs (EUR 0.1m) An early redemption fee of EUR 3.4m is included in interest payable on borrowings Gains on bond liability at fair value through profit and loss refers to the reversal of previously recognized fair value movements on the old bond The non-recurring costs primarly related to the old and new bond are effecting EBT and thus EPS EUR, MILLIONS JAN - MAR 2018 EBITDA 10.4 Depreciation & Amortisation -1.8 EBIT 8.6 Interest payable on borrowings -5.5 Other gains losses on bond liability at fair value through profit or loss Other finance costs (notional interest and foreign exchange) EBT 5.1 Earnings per share (before dilution) 0.09 EUR 14

15 Statement of Financial Position BALANCE SHEET AS AT 31 MARCH 2018 The groups assets primarily consist of intangible assets relating to the high number of acquisitions. EURm Other¹ Cash and equivalents Other² The Company s liabilities primarily consist of the EUR 150m bond loan as well as EUR 68m in expected earn-out commitments Borrowings Up to 50% of amounts committed to acquisitions can be paid with shares and thus become equity. Amounts committed on acquisitions is over three year period Intangible assets⁴ % can be settled in shares 68.0 Amounts committed to acquisitions³ 1) Other includes property, plant and equipment, other investments and other receivables. 2) Other includes trade and other payables, deferred tax liabilities and current tax liabilities. 3) Includes both current (EUR 40.4m) and non-current (EUR 27.6m) commitments 4) Intangible assets primarily relate to domains, websites, player databases and other intellectual property and goodwill. ASSETS Equity EQUITY AND LIABILITIES 15

16 Cash Flow Catena Media has a high operating cash flow and a solid cash conversion in its underlying operation NET CASH GENERATED FROM OPERATING ACTIVITITES EURm YoY 158 % 10.3 Cash conversion* was 99% during Q *Net cash generated from operating activities / EBITDA Q GROWTH Q

17 Funding Early redemption of old secured bond of EUR 100m New senior unsecured bond of EUR 150m - Three years, matures in March Floating rate of Euribor 3m (with floor of 0%) % - Total frame work of EUR 250m - More flexible structure - Enables bank financing with the highest of EUR 30m or 75% of adjusted EBITDA Currently working on bank financing 17

18 Catena Media igaming Update IMPROVED TRACKING INSIGHTS During the first quarter 2018 we have finalised a tracking project which gives us even better insight on what converts traffic. This has a positive impact on conversions and gives us great insight on where to focus our resources. LONDON AFFILIATE CONFERENCE 2018 Catena Media had substantial presence at the London Affiliate Conference with sales representatives from all the offices making new and valuable contacts and improving existing deals. INCREASED GOOGLE ADWORDS AND FACEBOOK EFFORTS IN THE UK We have substantially increased our PPC offer to operators in the UK where we are now quickly taking a market leading position. 18

19 Competitive Edge Diversified customer base: 750 companies and 1200 brands Still enjoy a low market share in an industry with strong underlying growth Strong technical platform Strong cultural conditions Strong track-record Solid shareowner base Strong management 19

20 Product Development SLOTSFIGHTER.COM A NEW CUTTING EDGE VIDEO FORMAT STRATEGIC INITIATIVES SlotsFighter.com was launched a cutting edge video format for casino entertainment on Twitch The new distribution channel is a casino entertainment show called SlotsFighter.com. The show pitches two casino players against each other and whoever gathers most points, in an elaborate scheme, wins the match and later on potentially the tournament. Slotsia.com - biggest casino affiliate in Japan With our Tokyo office taking over the strong Slotsia Japan asset we are now positioned to be the biggest casino affiliate in Japan. Other assets, such as RightCasino.com, are also receiving considerable Japanese traffic. BettingPro.com had a redesign implemented, with a focus on optimization. Squawka.com had a number of commercial improvements to deliver on long term deals. Two new Football and Racing mobile focused sites relating to Football and Racing Accumulators are being prepared and will be launched by mid-may. 20

21 Acquisitions during the quarter Acquisitions after the end of the period BonusSeeker.com Dreamworx Online GG.co.uk ParisSportifs.com BrokerDeal.de 21

22 US Update SKINS IN PENNSYLVANIA: Regulators recently released temporary regulations which appear to clear the way for multiple brands - or skins - for each key online gambling license in Pennsylvania. This development should increase competition in the market and the demand for Catena s high-quality leads. POOLED ONLINE POKER LIQUIDITY: On May 1st, WSOP.com began sharing online poker liquidity between Delaware, New Jersey, and Nevada. Multi-state poker represents a material opportunity for Catena. REVENUE SHARE LICENSE IN NEW JERSEY: Catena is in the final stages of the license application process in New Jersey that will allow us to strike revenue share deals in the state s online gambling market and the state s online sports betting market when it launches. PENNSYLVANIA LICENSE: Catena is close to submitting its license application to act as a marketing affiliate in Pennsylvania s regulated online gambling market. PRODUCT DEVELOPMENT: Catena US launched several new sites in Q1, including our newest sports betting site, TheLines.com. Skins in Pennsylvania Pooled poker liquidity NEW STATES PASS BILL: Analyst opinion places Illinois, Michigan, and New York as the states with the greatest chance of passing a bill this year. NEW GENERAL MANAGER FOR THE US: In April, Catena hired Michael Daly as the General manager for the US business. He will be instrumental in guiding a smooth transition and continued growth for our US operations. 22

23 Key Takeaways from first quarter 2018 New Bond Issued will form a strong financial platform for an increased expansion pace CEO recruitment Per Hellberg taking office during June Strong Growth and Capitalisation NDC Growth increased pace in generating new customers Catena media is well prepared to capitalize on the FIFA WORLD CUP Strong Management A number of key recruitments in place; CFO, IR, Head of igaming US as well as Head of Finance UK 23

24 Thank you UPCOMING EVENTS: CTM CAPITAL MARKETS DAY NOV 20TH, 2018 Q2 REPORT 2018 AUGUST 10TH, 2018 Q3 REPORT 2018 NOVEMBER 6TH, 2018