FIRST QUARTER OF 2016

• Revenues totalled EUR 7.46 million (1.96), an increase of 281 percent compared with the same quarter for the previous year.
• Adjusted operating profit excluding non-recurring IPO expenses amounted to EUR 4.16 million (1.19), corresponding to an adjusted operating margin of 56 percent (61). Operating profit increased to EUR 3.18 million (1.19) corresponding to an operating margin of 43 percent (61).
• Profit before tax amounted to EUR 3.83 million (1.19) and excluding non-recurring IPO expenses totalled EUR 4.80 million (1.19).
• Earnings per share amounted to EUR 0.07439 (0.02625). 

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• On 11 February 2016, the company’s shares were admitted to trading on the First North Premiere exchange. The subscription price for the offering was SEK 33 per share and the number of shares in issue amounted to 7,273,000. Total proceeds from the issue amounted to SEK 240 million, corresponding to EUR 25 million based on an exchange rate of SEK 9.5188 to the EUR.

• On 13 March 2016, the Group acquired a number of casino comparison websites that operate mainly in Italy and Belgium, which comprise new markets for Catena Media. These markets are regulated and revenue is generated solely from licensed operators. The purchase price for the acquisition of EUR 3 million was paid as a cash consideration in conjunction with the transfer of the assets. In addition, there is an earnout amount payable to the sellers based on revenue generated over the next two years. The earnout amount will not exceed the revenue generated and is capped at EUR 3 million per year, with a maximum total earnout of EUR 6 million.

• On 17 March 2016, Catena Media continued to consolidate its status as market leader in Sweden and continued to strengthen its position in lead generation through the acquisition of the Swedish affiliate network Wonko Media AB. Wonko Media AB was founded in 2010 and has since built a broad foundation of attractive portals and player databases in the online casino sector. The purchase price for the acquisition amounted to SEK 32 million (EUR 3.45 million), which was paid as a cash consideration in conjunction with the transfer of the assets. The assets were transferred to Catena Media plc effective from the closing date of 24 March 2016.

• On 3 April 2016, Catena Media acquired the acknowledged and highly regarded affiliate website AskGamblers.com for a consideration of EUR 15 million. The transaction is the largest in Catena Media’s history. AskGamblers operates one of the markets most highly visited web portals for player reviews and rankings of online casinos. The company also provides players with the unique opportunity of trying online casino-related disputes via the portal. Players across Europe utilise AskGamblers.com with the UK being the company’s largest market. The transaction comprises all affiliate accounts, domains, mobile apps and social media accounts.

CEO’S COMMENTS  

The year started with another record breaking quarter together with a successful listing of Catena Media’s shares on Nasdaq First North. The rapid growth we noted during 2015 continued through the start of the year. Growth in the first quarter of 2016 compared to the fourth quarter of 2015 largely comprised organic growth, however, it should be noted that at the end of this quarter two further acquisitions were made. Our organic growth is a result of several factors, whereby our focus on increasing the numbers of new depositing customers combined with our investment in technology are producing results. By introducing our business intelligence and technical platforms to the newly acquired companies, we are able to accelerate their existing growth rates. A tangible example of the effect of our acquisition model and its impact is Right Casino Media (acquired on 23 October 2015) which generates paid revenue. Comparison of paid revenue in the fourth quarter of 2015 with the first quarter of 2016 shows organic growth of 83 percent quarter on quarter. 

As referred to above, we completed two strategic acquisitions in the first quarter that strengthened our leading position in Europe and positioned Catena Media for further expansion. Moreover, we concluded our largest acquisition ever when we acquired Askgamblers.com in the beginning of April. This had no impact on our first quarter but comprises a key acquisition that will have a major impact on our strategic footprint in Europe going forward. Our exposure to regulated markets has increased through the recent acquisitions, which is in line with our strategy and brings valuable know-how and experience for continued expansion.

Excluding non-recurring items, our operating margin declined slightly during the first quarter compared to the fourth, which was a natural and short-term consequence of our substantial growth in paid revenue as well as our investment in technology and the recruitment of employees during the quarter.

Robert Andersson, CEO, Catena Media

INVITATION TO INTERIM REPORT PRESENTATION

Catena Media’s CEO Robert Andersson and CFO Patrik Bloch will today, 25 May 2016, host a presentation starting at 8.30 CET, presenting the interim report for the first quarter 2016. The presentation will be webcasted at that time on website: www.catenamedia.com/investors/. The presentation will be held at Snabbmedia, Nyhetsbyrån Direkt, Jakobsbergsgatan 13 in Stockholm. To participate, please register in advance at: [email protected]. The presentation will be held in English. After the presentation there will be an opportunity to ask questions in writing via the webcast.