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  • November stock market sweep: Catena Media share decline echoes affiliate struggles
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Shares in Catena Media fell by 31% in November as several affiliate businesses faced challenges throughout the month.

Elsewhere, Super Group turned out to be the biggest loser among publicly listed operators, whereas industry suppliers demonstrated relatively strong performance.

Even the bottom performer in the supplier category saw an uptick in stock value.

Super Group 

In November, shares in Super Group experienced a substantial decline, losing 20.1% of their value as they fell from $3.83 to $3.06.

The decline followed the publication of Super Group’s Q3 results, with the Betway and Spin owner reporting a 16% year-on-year revenue increase to €356.9m in Q3 2023. 

However, investor reaction seemed to signal disappointment, leading to a sell-off of the stock, possibly due to higher market expectations.

Super Group’s revenue surge primarily stemmed from the African and Middle Eastern, European, and North American markets. 

However, this growth was somewhat offset by downturns in the Latam and Asia-Pacific regions.

Specifically, in the Asia-Pacific area region Super Group experienced a 9% year-on-year revenue drop to €62m, while in Latam it recorded a 14% year-on-year decline to €6.7m.

Super Group’s stock showed significant volatility in 2023, peaking at $4.13 on 3 April and hitting a low point of $2.87 on 7 July.

Catena Media 

Shares in Catena Media fell by 31% in November, from SEK17.27 per share on 31 October to SEK11.92 on 30 November.

Markets did not favour affiliate marketing companies overall during the month.

In comparison, key players in the industry also experienced losses: Gambling.com Group dropped 26.3%, Better Collective dipped 11.9%, XLMedia saw an 8.9% decrease, and Raketech faced an 8.1% decline. 

Despite those declines across the sector, Acroud managed a modest share gain of 5.4%, standing out as a relative winner in the market.

Catena Media’s struggles are nothing new; but investor confidence was eroded further following a stark 28% year-on-year revenue slump to €15.9m in Q3 2023.

US revenue specifically took a hit, plunging by 29% year-on-year to €13.3m in the quarter but still constituting a substantial 84% of overall group revenue. 

Adjusted EBITDA from continuing operations also took a nosedive, plummeting by 65% year-on-year to €3.1m. 

This drastic fall translated into an adjusted EBITDA margin of 19%, down sharply from the 40% recorded in Q3 2022.

In November, the affiliate business also announced that it had completed its strategic review and sold its Italian market assets to two separate buyers.

Despite these strategic moves, investor confidence in Catena Media remained unswayed, with the company’s performance showing no signs of improvement. 

Its Q3 financial report revealed a 37% year-on-year decline in total revenue from continuing operations, indicating ongoing challenges for the group.

Playtech 

In the supplier category, an anomaly emerged where the least successful company still managed to achieve a rise in its stock value.

Playtech, despite being the lowest performer among the suppliers on our watchlist, saw its shares climb by 4.6%, rising from £3.93 on 31 October to £4.11 by 30 November.

Nonetheless, this growth stands as the most sluggish among the monitored suppliers.

Playtech’s shares might have soared further if it hadn’t lost the bidding war for SKS365, which was eventually acquired by its competitor Lottomatica Group for €639m.

SKS365, an operator with Austrian origins and now headquartered in Malta, operates various brands in Italy’s gambling sector, spanning both retail and online domains.

In response to losing the bidding war, Playtech said: “The group will continue to take a prudent and rational approach to evaluating selected acquisition opportunities in-line with its strategy to ensure appropriate exposure to attractive segments, both regionally and within product verticals.”

In addition to missing out on the SKS365 acquisition, Playtech faced another setback recently.

Reports emerged revealing Playtech’s failed attempt to acquire 888 Holdings, the owner of William Hill, in a proposed £700m takeover earlier in the summer. 

Playtech’s written proposal to purchase 888 at a price of 156p per share was reportedly rejected for undervaluing the company, leaving investors awaiting the company’s next strategic move in the market.

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