US – Strength in North America delivers revenue growth as new strategic focus takes root: Catena MediaBy Phil - 22 February 2023
Catena Media’s revenue increased by 31 per cent in North America in Q4, led by the launch of licensed online sports betting in Maryland. Total group revenue from continuing operations rose 15 per cent.
Ninety per cent of group revenue now derives from regulated markets, reflecting the group’s commitment to compliance.
In January, revenue from North America rose 19 per cent when excluding the exceptional 2022 launches in New York and Louisiana and the 2023 Ohio launch. In total, group revenue from continuing operations decreased by four per cent, an expected outcome after the record launches last year when North American revenue increased by almost 65 percent from January 2021.
CEO Michael Daly’s said: “The final quarter of 2022 was strong for Catena Media as we recorded a 15 per cent increase in revenue to EUR 27.4m, along with growth of 14 per cent in adjusted EBITDA from continuing operations. These figures reflected the further expansion of our core North American business, where revenue climbed 31 percent on the back of robust performance in Maryland, which legalised licensed online sports betting in November, a strong World Cup, and contributions from recently opened markets in New York, Louisiana, Ontario and Kansas. We also profited from a favourable run-up period prior to the launch of legal sports betting in Ohio on 1 January 2023.
“The timing of the Maryland launch on Thanksgiving proved beneficial as the holiday traditionally coincides with a strong NFL schedule. Our teams made sure we hit the ground running for the player pre-registration phase as well as the go-live. Today, we have in place a well-oiled launch model with the agility and acumen to capitalise fully on legalisation processes, drawing on our experiences from multiple state openings in the last three years in North America.
“The model was replicated in Ohio, where it delivered our most successful ever initial sports betting launch phase, outshining the high-value New York opening in January 2022. New market launches in North America are always hard to predict with precision due to the complexities of the regulation process and the political factors that are involved. Massachusetts is scheduled to legalise in March, while Vermont and Maine have also been suggested as potential candidates for legalised sports betting later in the year. Beyond these, we see no firm indications from new states regarding online sportsbook or casino launches in 2023. That being said, past experience suggests that the status quo can change quickly once a regulation process moves forward.”
“North America accounted for 78 per cent of our revenue from continuing operations in Q4,” he added.