Second-quarter affiliate earnings roundup: Better Collective, Gambling.com, Catena Media

Friday, August 23, 2024 1:21 PM
Photo:  CDC illustration
  • Mia Doyle, Special to CDC Gaming

A roundup of the latest financial results of three of the United States’ largest gambling marketing affiliates – Better Collective, Gambling.com and Catena Media.

Better Collective

Better Collective, the digital sports media group behind brands such as HLTV, VegasInsider and Action Network, generated €99 million ($110 million) in second-quarter revenue, a 27 percent year-on-year increase after a 37 percent growth last year. At €62 million ($69 million), recurring revenue also was up 26 percent compared to the second quarter of 2023, implying higher quality revenue. EBITDA was steady at €29 million ($32 million).

The company saw 501,000 new depositing customers during the quarter, with a significant contribution from the Men’s European Championship in soccer.

“Thanks to a great team effort, we managed to deliver a strong Q2 in a time of changing market conditions. Our existing business is back to organic growth, and I am pleased to see that our diversified strategy has performed as envisioned,” Jesper Søgaard, Co-Founder & CEO of Better Collective, said in a regulatory release.

Better Collective reported increased costs in North America during the quarter after its February acquisitions of Playmaker Capital and Playmaker HQ. In May, the company announced it had  acquired United Kingdom sports betting media brand AceOdds in a €42 million ($47 million) transaction. The company’s full-year financial targets, which were upgraded after the acquisition, remain unchanged.

The company expects revenue between €395 million ($439 million) and €425 million ($473 million), suggesting 21 to 30 percent growth, and EBITDA of €130 million ($145 million) to €140 million ($156 million), which would imply a 17 to 26 percent surge.

In June, Better Collective also announced a share buy-back program for up to €20 million, from June 24 to September 5.

Gambling.com

Gambling.com collected $30.5 million in revenue during the second quarter, up 18 percent year-on-year, after a 63 percent increase in the second quarter of 2023. At the same time, adjusted EBITDA hit a record $11.2 million, compared to $9.4 million last year. Net income rose to $6.9 million from $6.5 million. Consequently, the company raised its 2024 revenue and adjusted EBITDA guidance.

Gross profit was up 16 percent to $29.1 million as operating expenses fell 15 percent to $20.8 million. Gambling.com reported more than 108,000 new depositing customers during the quarter, up 19 percent year-on-year.

“Our second quarter and year-to-date results highlight the incredible power of our high-intent audience and the clear value we create for our online gambling operator clients,” Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, said in a press release. “As we continue to execute at a high level, expand our footprint in the online gambling ecosystem and leverage industry growth opportunities, we continue to see a clear path towards our goal of $100 million in annual adjusted EBITDA.”

Company highlights during the second quarter included the acquisition of Freebets.com in a deal valued between $37.5 million and $42.5 million. The company anticipates an additional $10 million in revenue and $5 million in adjusted EBITDA this year from this acquisition. In May, the company’s board approved an additional $10 million for its share repurchase program.

Catena Media

Catena Media was the only of the three companies to report a year-on-year revenue decrease in the second quarter. Revenue was down 24 percent to €12.8 million ($14.2 million). Of this, the company’s North America segment accounted for €11.2 million ($12.4 million), an 11 percent drop from last year’s €12.5 million ($13.9 million), while the rest of the world reported a 33 percent decrease to €1.6 million ($1.8 million). North America contributed 88 percent of group revenue from continuing operations.

Adjusted EBITDA fell 14 percent compared to the second quarter of 2023, from €5.6 million ($6.2 million) to €4.8 million ($5.3 million). But while North America saw a 24 percent decline, adjusted EBITDA from the rest of the world rose 216 percent from €0.3 million ($300,000) to €0.8 million ($900,000).

“Our Q2 results were in line with the earnings update issued in June,” Catena Media CEO Manuel Stan said in a press release. “I am excited by the challenges ahead and optimistic of the future as we maximize our products’ potential, particularly in the casino segment where we see strong opportunities for growth. I believe Catena Media is well positioned to become a leading partner for the igaming industry in North America.”

Standout changes for Catena Media during the second quarter included changes within its executive management team, with four of five members being newly appointed since April 1,  including Michael Gerrow as Chief Financial Officer and Edward Midolo as Chief Technology Officer, appointed in April, while CEO Manuel Stan and Chief Operating Officer Pierre Cadena joined the team on July 1.

This came after ex-CEO Michael Daly resigned in February, a couple of weeks after the company reported a 43 percent revenue decrease in the fourth quarter of 2023.

“We have a combination of new blood with people who have been here for a while, people have grown with the company and people who have proved themselves. Everybody is highly motivated and everybody is keen to take this challenge… We’re in this together and as a management team, we’re highly motivated to turn this around,” Stan said in the press release.

Mia Doyle is a news writer for Major League Content, covering the latest stories across the casino and sports betting industry. Mia’s specialties include US gambling business, casino technology, and legislation news. Mia also likes to write about responsible gambling and social responsibility.