Catena Media plc · OMXSTO:CTM
Catena Media — Q3 2021 Earnings Presentation
24 slides from Catena Media's earnings presentation, November 2021
Slide 1: Interim Report January – September 2021
Interim Report January – September 2021 Michael Daly, CEO Peter Messner, CFO
Slide 2: Agenda
01 Q3 Highlights 02 i15 Media’s online assets Agenda 03 Financials Q3 2021 04 Strategy and Outlook 05 Q&A
Slide 3: Exceedingly strong quarter with solid forward momentum
Revenue Exceedingly strong quarter with (EURm) solid forward momentum 33.1 Jul-Sep 2021 24.9 Jul-Sep 2020 • Solid revenue growth of 33% +33% – North America and Japan the main drivers “ Revenue North America • Organic growth of 23% (EURm) – Excluding the German sports betting and casino market, whic
Slide 4: Firm growth in adj. EBITDA and healthy financial position
Adjusted EBITDA Firm growth in adj. EBITDA and (EURm) healthy financial position 16.0 Jul-Sep 2021 12.0 Jul-Sep 2020 • Adjusted EBITDA growth of 33% and margin of 48% despite further +33% heavy investment in North America and transformation programme investments in Europe Adjusted EBITDA margin (EUR
Slide 5: i15 Media's online assets – value enhancing strategic addition
i15 Media’s online assets – value enhancing strategic addition • Acquisition of online sports betting and casino affiliation assets from i15 Media, LLC for USD 45m, of which USD 12.5m paid with 2,207,357 newly issued shares • Boost for the upcoming markets/states in North America • Acquired on 9 Sep
Slide 6: Current trading October 2021
Current trading October 2021 • Revenue growth of 21% – or 36% excluding the German sports betting and casino market – compared to the same month last year • Revenue from North American sports betting and casino up 125% from October 2020 • Income from revenue share deals negatively impacted by unusua
Slide 7: Financials Q3 2021
Financials O3 2021 vw
Slide 8: Continued revenue growth
Continued revenue growth Group revenue by product New depositing customers 180 45 0.0 158 154 160 40 2.3 140 0.0 140 125 35 0.0 120 1.4 113 30 0.4 0.4 0.4 0.4 120 104 0.5 0.4 2.0 99 95 1.6 100 EURm 25 '000 2.8 2.8 2.4 2.5 2.0 20 80 38.4 15 28.4 31.7 60 23.4 23.9 25.8 23.7 23.1 22.5 40 10 5 20 0 0 Q3
Slide 9: Share of revenue by segment and source
Share of revenue by Share of revenue by segment segment and source 100% 5% 5% 6% 6% 18% 6% 5% 3% 35% 3% 28% 2% 33% 36% 33% 30% 35% 38% 75% • Larger share of revenue from Sports vs Q2 50% 76% 69% 2021 due to seasonality and acquisitions of 25% 62% 59% 61% 64% 60% 62% 60% Lineups.com and i15 Media ass
Slide 10: Casino: 60% of group revenue
Casino: 60% of group revenue Share of adjusted EBITDA • Strong performance in the US with solid revenue growth – Michigan and social casino as key drivers • Revenue in Japan doubled to an all-time high as new content platforms drove rapid growth • Continued headwinds in Germany due to new regulation
Slide 11: Sports: 38% of group revenue
Sports: 38% of group revenue Share of adjusted EBITDA • Strong US performance boosted by launches in Tennessee, Michigan, 29% Virginia, Arizona and Wyoming in the last 12 months • Acquisitions of Lineups.com and i15 Media assets added significant revenue from 9 September when the NFL season started
Slide 12: Financial Trading: 2% of group revenue
Financial Trading: 2% of group revenue Share of adjusted EBITDA • Like-for-like revenue decreased by 23% 0% • End of Covid-related lockdowns negatively impacted user traffic relative to Q3 2020 • Slower-than-usual summer season due to lower market activity that reduced user engagement • Continued po
Slide 13: Increase in product and staff investment
Increase in product and staff investment Cost development ¹ • Direct costs increased due to higher revenue 20 52% ² share spend on YouTube influencers in the 52% ² North American market 15 5.3 5.2 4.8 • Personnel expenses increased by 40% y/y, 5.6 6.1 5.1 EURm 5.2 4.6 10 4.6 mainly due to continued
Slide 14: Adjusted EBITDA growth of 33%
Adjusted EBITDA growth of 33% 58% Adjusted EBITDA per quarter and LTM 80 120 68.3 70 64.3 64.1 60 52.0 95 50.5 51.0 50 45.2 44.2 43.5 EURm 40 70 62% 30 53% 48% 48% 49% 48% 46% 44% 42% 20 45 25.1 10 14.8 14.9 16.0 11.5 11.3 12.9 12.0 12.3 0 20 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Adj
Slide 15: Profit impacted by impairment charge
Profit impacted by impairment charge Jul-Sep Jul-Sep • Operating profit (EBIT) declined to EURm 2021 2020 EUR -36.7m due to non-cash impairment EBITDA 14.9 12.2 Depreciation and amortisation -2.2 -2.8 • EUR 49.4m impairment charge on intangible Impairment on intangible assets -49.4 - assets Operatin
Slide 16: Operating cash flow growth of 17%
Operating cash flow growth of 17% Operating cash flow 30 134% 130% 150 106% • Operating cash flow +17% y/y to EUR 9.9m 81% 90% 96% 89% 100 25 70% 67% with cash conversion of 67% 23.3 50 • Cash flow from investing activities includes a 20 EUR 10.6m outflow relating to the acquisition 0% EURm 14.9 15
Slide 17: Improved capital structure
Improved capital structure Leverage ratio and NIBL • Borrowings comprise outstanding bonds with 200 4 a nominal value of EUR 55m, a bank term 3.42 3.46 3.17 loan of EUR 22.9m and a revolving credit 150 3 facility (RCF) of EUR 10m • In Q3 the RCF of EUR 10m was utilised EURm 100 1.68 2 • Net interest
Slide 18: Strong balance sheet
Equity and liabilities Strong balance sheet 4 00 (sequential development) 372.9 364.3 352.8 17.5 • Total assets of EUR 364.3m on 30 September 17.0 15.5 80.6 • Total equity of EUR 220.9m including hybrid capital 300 78.2 88.5 securities of EUR 44.6m (EUR 53.1m net of EUR 8.5m 11.7 issuance costs) 48.
Slide 19: Strategy and outlook
Strategy and outlook vw
Slide 20: Strategic growth focus
Strategic growth focus 2. Geographical expansion 3. Cost-efficiency 1. Organic growth 4. Strategic M&A of existing products improvements FOCUSED ACTIONS BY WHERE GROWTH TREND STRATEGY MISSION MARKET SATURATION US (existing Operational efficiency GROWTH MARKETS business), Japan, and investments in Fa
Slide 21: North America: the unparalleled opportunity
North America: the unparalleled opportunity Remaining: 30m 9% Catena Media’s North American business: revenue growth and share of total group Larger but revenue further: Current: 71m 119m 49% 21% 35% Market size (population) - 30% +122% 336 million* The giants: 18% +71% 69m 20% Q1-3 Upcoming: 48m 20
Slide 22: North America's recent and upcoming market openings
North America’s recent and upcoming market openings Status Market Pop.* Comment Current Arizona 7.1m Fully launched in Q3 Current Wyoming 0.6m Fully launched in Q3 Current Connecticut 3.6m Fully launched in Q3 Current / Mississippi 3.0m In-person-registration required. Upcoming Current / Florida 21.
Slide 23: Key takeaways
Key takeaways • Solid Q3 performance with North America and Japan the main drivers • Strong balance sheet and cash generation create financial flexibility and scope to invest in growth • – Focus on investing more in the business to drive further growth – Strategic acquisitions and share buybacks rem
Slide 24: Contact information Upcoming events
Contact information Upcoming events Michael Daly, CEO Year-end report 2021 michael.daly@catenamedia.com 23 February 2022 Peter Messner, Group CFO Annual report 2021 peter.messner@catenamedia.com Week 13 2022 Investor Relations Interim report Q1 2022 ir@catenamedia.com 18 May 2022 Interim report Q2 2