Catena Media plc · OMXSTO:CTM
Catena Media — Q2 2021 Earnings Presentation
24 slides from Catena Media's earnings presentation, August 2021
Slide 1: Interim Report January – June 2021
Interim Report January – June 2021 Michael Daly, CEO Peter Messner, CFO
Slide 2: Agenda
01 Highlights 02 Lineups.com Agenda 03 Financials Q2 2021 04 Strategy and Outlook 05 Q&A
Slide 3: Solid revenue growth and forward momentum
Revenue Solid revenue growth and (EURm) forward momentum 30.4 Apr-Jun 2021 27.8 Apr-Jun 2020 • Strong revenue growth of 9% despite re-opening of land-based +9% casinos “ – Expected seasonal change vs Q1 due to the low sports season Organic search revenue (EURm) – Q2 2020 was 2020’s strongest quarter
Slide 4: Growth in adj. EBITDA and solid financial position
Adjusted EBITDA Growth in adj. EBITDA and (EURm) solid financial position 14.9 Apr-Jun 2021 14.8 Apr-Jun 2020 • Adjusted EBITDA growth of 1% despite the strong Q2 2020 results, +1% further heavy investment in North America and transformation programme investments in Europe Adjusted EBITDA margin (EU
Slide 5: Lineups.com – a perfect strategic fit
Lineups.com – a perfect strategic fit • A second national sports website in the US alongside TheLines.com • Key for all the upcoming markets/states in North America • Integration completed during Q2, ready for the sports season resumption opening in September • Acquired beginning of May, hence contr
Slide 6: Significant events after the period
Significant events after the period Extraordinary general meeting on 14 July • Authorisation to acquire own shares was granted, the proposal required two majorities • The board moved forward with plans to start a share buyback programme during autumn 2021, the precise timing remains under considerat
Slide 7: Financials Q2 2021
Financials Q2 2021 vw
Slide 8: Continued revenue growth
Continued revenue growth Group revenue by product New depositing customers 180 45 0.0 158 160 40 2.3 140 140 125 35 0.0 120 113 30 0.4 0.4 120 104 0.5 0.4 0.4 0.4 2.0 100 99 95 0.7 1.6 100 EURm 25 '000 2.8 2.8 2.4 2.5 2.0 2.8 80 20 38.4 15 28.4 60 23.4 23.9 25.8 23.7 23.1 22.5 40 10 20.2 5 20 0 0 Q2
Slide 9: Share of revenue by segment and source
Share of revenue by Share of revenue by segment segment and source 100% 6% 5% 5% 6% 6% 18% 6% 5% 3% 3% 27% 33% 36% 33% 30% 35% 35% 75% 38% • Lower share of revenue from sports due to 50% 76% 69% seasonality vs Q1 2021 25% 56% 62% 59% 61% 64% 60% 62% • Larger share of revenue from CPA (cost per 0% Q2
Slide 10: Casino: 69% of group revenue
Casino: 69% of group revenue Share of adjusted EBITDA • Strong performance in the US with solid revenue growth • Relaxation of COVID restrictions, fewer sessions as players shifted offline • Continued headwinds in Germany • New depositing customers flat 89% • Revenue -1% Casino Sports Financial Trad
Slide 11: Sports: 28% of group revenue
Sports: 28% of group revenue Share of adjusted EBITDA • Strong performance in the US boosted by recent launches in 9% Michigan and Virginia and the return of sports events • Lineups expected to add significant value when the NFL season starts late Q3 • Solid growth in Europe excluding the now-regula
Slide 12: Financial Trading: 3% of group revenue
Financial Trading: 3% of group revenue Share of adjusted EBITDA 2% • Like-for-like revenue decreased by 16% considering a pandemic-induced demand surge Q2 2020 • Strong crypto-related trading in Q1 2021 ebbed out in Q2 • Positive momentum for AskTraders • Like-for-like adjusted EBITDA +91% Casino Sp
Slide 13: Increase in product and staff investment
Increase in product and staff investment Cost development ¹ • Direct cost increased mainly as a result of 20 sports being back as compared to Q2 2020 47% ² 51% ² 15 • Personnel expenses increased, mainly as a 5.2 4.8 5.6 6.1 result of continued investments in the 5.4 5.1 EURm 5.2 4.6 10 4.6 growing
Slide 14: Adjusted EBITDA growth of 1%
Adjusted EBITDA growth of 1% 58% Adjusted EBITDA per quarter and LTM 70 64.1 64.3 120 60 51.0 52.0 50.5 50 46.2 45.2 95 44.2 43.5 40 EURm 70 62% 30 53% 48% 48% 49% 20 46% 44% 42% 40% 45 25.1 10 12.9 14.8 12.3 14.9 9.5 11.5 11.3 12.0 0 20 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Adjusted
Slide 15: Stable profit
Stable profit Apr–Jun Apr–Jun • Operating profit (EBIT) up by 5%, EBIT margin EURm 2021 2020 EBITDA 12.7 13.0 34% Depreciation and amortisation -2.3 -3.0 • Significant reduction in interest payments on Operating profit 10.4 10.0 borrowings Interest payable on borrowings -1.1 -2.2 Other losses on fin
Slide 16: Strong cash flow and cash conversion
Strong cash flow and cash conversion Operating cash flow 30 134% 130% 150 111% 106% • Operating cash flow -6% to EUR 16.4m with 81% 90% 96% 89% 100 25 70% cash conversion of 130%, as a result of the 23.3 3% EBITDA decline due to items affecting 20 50 comparability 0% EURm • Cash outflow of EUR 20.8m
Slide 17: Improved capital structure
Improved capital structure Leverage ratio and NIBL • Refinancing in Q2 2020, exchanging debt with 200 4 hybrid capital and strong deleveraging since 3.42 3.46 3.17 2.98 • Outstanding bonds of EUR 88.5m were 150 3 redeemed by issuing EUR 55m of new bonds and signing a bank term loan of EUR 25m EURm 1
Slide 18: Strong balance sheet
Equity & Liabilities Strong balance sheet 4 00 (sequential development) 372.9 352.8 17.5 • Total assets of EUR 372.9m at 30 June 17.0 80.6 • Total equity of EUR 263.1m including hybrid capital 300 78.2 11.7 securities of EUR 44.8m (EUR 53.3m net of EUR 8.5m 44.8 issuance costs) 48.9 EURm 200 • 34.7m
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: an unparalleled opportunity
North America: an unparalleled opportunity Remnants 33m. Current 10% Catena Media’s North American business: 70m. 21% revenue growth and share of total group Larger but revenue further 71m. 49% 21% 30% Market size (population) - +72% +121% 335 million* 18% The Giants Upcoming 110m. 51m. 33% 15% 2019
Slide 22: Opportunities in Europe, LATAM and APAC
Opportunities in Europe, LATAM and APAC • Our European-focused transformation programme is expected to start showing positive results towards the end of this year • We expect the now-regulated German iGaming market to return to growth, but timing is uncertain • Latin America (LATAM) is still an incu
Slide 23: Key takeaways
Key takeaways • Solid Q2 performance considering that Q2 2020 was strongly affected by the Covid-related surge in Casino and continued growth-focused investments • Strong balance sheet and cash generation provide for growth investments and financial flexibility • – Intention to start a share buyback
Slide 24: Contact information and upcoming events
Contact information Upcoming events Michael Daly, CEO Interim report Q3 +1 702 300 6720 17 November 2021 michael.daly@catenamedia.com Year-end report 2021 Peter Messner, Group CFO 23 February 2022 +46 768 95 26 93 peter.messner@catenamedia.com Annual report 2021 Week 13 2022 Investor Relations ir@ca