Catena Media plc · OMXSTO:CTM
Catena Media — Q4 2023 Earnings Presentation
18 slides from Catena Media's earnings presentation, February 2024
Slide 1: Q4 Year-end report January - December 2023
Q4 Year-end report January - December 2023 Michael Daly CEO Erik Edeen, Interim CFO
Slide 2: Overview Q4
Overview Q4 → Revenue in Q4 decreased by 41%, reflecting lower CPA rates and new depositing customers (NDCs) and a higher ratio of revenue share contracts in North America. → Revenue share accounted for 16% of NDCs. The transition from CPA to revenue share is being implemented over the coming quarte
Slide 3: Events after the quarter
Events after the quarter → Updated financial targets announced on 13 February in response to changing markets conditions and technology investments. → Successful launch of online sports betting in Vermont, with an adult population of 0.5m, on 11 January. → A partial prepayment of half of the nominal
Slide 4: 2023 highlights
2023 highlights Group revenue Adjusted EBITDA Adjusted EBITDA margin NDCs Continuing operations (EURm) Continuing operations (EURm) Continuing operations Continuing operations (’000s) 76.7 25.4 33% 184.3 -22% -47% -16pp -19% North America revenue North America North America North America NDCs (EURm)
Slide 5: Financials Q4 2023
Financials Q4 2023 5
Slide 6: North America
North America North Revenue (EURm) America → Revenue decreased by 43% from Q4 2022, reflecting tougher competition and challenging comparables with Maryland launch in Q4 2022. 12.3 21.5 Oct-Dec 2023 Oct-Dec 2022 → Adjusted EBITDA decreased to EUR 4.4 m, corresponding to a margin of 36%. → Negative s
Slide 7: Rest of the world
Rest of the world Rest Revenue (EURm) of the world Continuing operations → Revenue decreased by 29%, primarily driven by APAC. → Adjusted EBITDA was EUR 0.9m, corresponding to a 2.2 3.0 margin of 43%. Oct-Dec 2023 Oct-Dec 2022 → In APAC, Slotsia’s double-digit growth highlighted strong underlying po
Slide 8: Segment performance
Segment performance Segments Continuing operations → Sports revenue from continuing operations decreased by Sports revenue (EURm) Casino revenue (EURm) 55% and accounted for 38% of group revenue in Q4. Adjusted EBITDA decreased to EUR -1.9m (5.0). 5.4 12.0 9.0 12.5 → Casino revenue from continuing o
Slide 9: Cost development
Cost development Cost development¹ Continuing operations Rest of the world and → Continued investments in technology, paid media, media North America shared central operations partnerships and subaffiliation. 10 → Total costs¹ in North America decreased by 7% and accounted for 61% of the total group
Slide 10: Strong financial position
Strong financial position EURm → Net interest-bearing debt (NIBD) decreased by 65% to 160 4.0 EUR 18.4m (53.0). 140 3.5 → Strong net cash position when future sale proceeds factored in. 120 3.0 → Focus on debt reduction and strategic investments. 100 2.5 80 2.0 60 1.5 NIBD (EURm) Leverage ratio 40 1
Slide 11: Capital structure
CURRENT DEBT OVERVIEW AS OF 31 DECEMBER 2023 EUR '000 Capital structure Bond issue 2021/2024 ‒ Total bonds issued* 55,000 ‒ Repurchased bonds* -12,300 Outstanding bonds* 42,700 → No financial commitments are outstanding in relation to prior Revolving credit facility (RCF) 10,000 acquisitions. Bank l
Slide 12: Strategy and outlook Q4 2023
Strategy and outlook Q4 2023 12
Slide 13: State launch history
State launch history Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 New York Ohio Louisiana Ontario Kansas Maryland Massachusetts - Kentucky Maine 2022 launches 2023 launches 4 sports (43.0m*) 4 sports (19.5m*) 1 casino (11.9m*) 0 casino 2021 launches 5 sports (23.9m*) 2 casino (10.
Slide 14: Market update
Market update Market penetration 1 50% 16% Sports Casino 50% 84% Yet to regulate Yet to regulate Upcoming launches • North Carolina 8.5m | 11 March 2024 Q4 2023 – Catena Media Year-end report 1 Total adult population based on management’s assessment. 14
Slide 15: Focus areas H1 2024
Focus areas H1 2024 Advance technology Product development Grow media partnerships Accelerate paid media + Rollout of new technical + Maintain top rankings by + Expand reach with established + Low barrier to entry platform, with improved products that enrich user news organisations + Generate rapid
Slide 16: Strategic direction and updated financial targets
Strategic direction Updated financial targets 2024-2026 1. Double-digit organic growth in both revenue and adjusted EBITDA for 2025 and 2026 at group level. → Organic growth is expected to resume in the second half of 2024. Full-year 2024 adjusted EBITDA expected to be in 2. Net interest-bearing deb
Slide 17: Key takeaways and updated financial targets
Key takeaways Updated financial targets → Lower revenue in North America amid increased competition 1. Double-digit organic growth in both revenue and adjusted and reduced CPA rates. Q1 will be stronger in relation to Q4. EBITDA for 2025 and 2026 at group level. → Organic growth expected to resume i
Slide 18: Contact information and upcoming events
Contact information Upcoming events Investor Relations Annual report 2023 Interim report Q2 2024 [email protected] Week 13 2024 14 August 2024 Michael Daly, CEO Interim report Q1 2024 Interim report Q3 2024 [email protected] 7 May 2024 7 November 2024 Erik Edeen, Interim CFO Annual gener