Catalyst Media Group Profits Rise as SIS Bets Big on Esports Expansion

Catalyst Media Group FY2025: profits edge higher, NAV steady, dividend held back

Catalyst Media Group has posted a tidy step up in profits and steady net asset value, driven by its 20.54% stake in Sports Information Services. The pivot at SIS toward high-frequency esports and numbers content continues, while traditional UK racing remains challenged. For investors, this is a story of cautious capital preservation at CMG and active growth investment within SIS.

Headline numbers first: CMG delivered profit after tax of £387,120, up from £283,185, with basic EPS of 1.84p versus 1.35p. Net asset value per share was approximately 147p, marginally down from 149p, and total equity stood at £30.9 million. The Board is keeping cash tight and does not intend to declare a dividend for these results.

How SIS performed – lower turnover, growing profit after tax, and a clear content strategy

CMG equity-accounts SIS, so understanding SIS matters. For the year to 31 March 2025, SIS reported turnover of £190.5 million (2024: £234.1 million) and operating profit of £3.2 million (2024: £3.5 million). Profit before tax was £3.0 million and profit after tax £2.3 million, up from £1.9 million the prior year.

The profit profile reflects two moving parts: reduced UK greyhound content and the cessation of Greyhound Television in April 2024 pressuring racing revenues, alongside continued investment to scale content creation. Despite that drag, SIS kept the group in profit and paid an aggregate dividend of £1.721 million, of which CMG received approximately £0.35 million on 31 October 2025.

Content Creation and H2H Esports – the growth engine

SIS has diversified beyond racing with short-form, high-frequency betting content. Competitive Gaming under the H2H Esports brand now delivers roughly 200,000 unique live events annually, with ESIC Gold Standard accreditation. The focus has been eBasketball and eSoccer, and SIS plans to launch two new sports titles in the current financial year, which should materially increase event volumes.

North America is a bright spot. Products are live across 18 licensed US jurisdictions. Hard Rock Bet has launched both existing titles and FanDuel added eSoccer after taking eBasketball since 2024. Management is seeing significant year-on-year revenue growth here and expects it to continue as more customers and titles go live.

Numbers content is hefty too – more than 500,000 draws per year across 49’s, Fast 15s and 39’s, plus Lotto365 for bet365. Across both divisions, SIS now delivers over 750,000 betting events annually to more than 400 operators in over 50 countries.

Racing Content & Services – still core, but UK pressures linger

SIS remains a leading distributor of live horse and greyhound content, covering 60,000+ events from 100+ racecourses across 15 countries. It has renewed long-term retail agreements in the UK and supplies major online operators. However, the UK racing market is tough – the Gambling Commission data points to continued declines in betting turnover on racing, which affects revenue share on content. Production and distribution income is largely unaffected.

The UK budget in November 2025 did not directly impact SIS, but any knock-on effect on shop numbers or UK racing revenue share is uncertain. The good news – most Content Creation revenues are ex-UK, so the budget impact there should be minimal.

Cash, facilities and valuation – sensible cushions in place

SIS ended 31 March 2025 with £1.9 million cash and reported approximately £8.1 million as at 30 November 2025. It also has a £35 million banking facility in place for working capital and growth, expandable to £50 million.

At the CMG level, cash at 30 June 2025 was £206,650, down from £525,192, reflecting dividend payments of £841,281 in the year versus £632,275 received from SIS. The board is maintaining cash reserves and minimal overheads, and is not proposing a dividend on these results.

On valuation, CMG has kept its SIS investment carrying value at £30.7 million. Directors note impairment indicators linked to declining racing demand, but a value-in-use assessment supports the current carrying value. Key assumptions include a 14% discount rate and 3% terminal growth, underpinned by SIS’s growth plan and the shift toward Competitive Gaming.

Share buyback and governance notes

After the year end, CMG bought back 180,102 shares at 50p per share, held in treasury. Set against a NAV per share of roughly 147p at 30 June 2025, that price implies a deep market discount – buybacks at that level tend to be accretive for continuing shareholders.

Worth flagging governance: CMG is entitled to appoint one director to the SIS board, which currently has nine directors. The Group currently has no representative on the SIS board. CMG can influence strategy but cannot control day-to-day operations without broader shareholder backing at SIS.

Outlook – like-for-like profit growth at SIS, esports pipeline, and US momentum

SIS has told CMG it expects growth in overall like-for-like operating profit before investment in new titles in the year to 31 March 2026, driven by more content and a larger customer base. The US opportunity remains a central pillar – more jurisdictions and new sports titles could be catalysts.

For CMG shareholders, the story remains linked to SIS execution: scaling Competitive Gaming and Numbers while keeping racing content relevant and profitable. Dividends from SIS are likely the main source of CMG cash inflow. CMG will keep its own costs lean and cash tight for now.

Positives

• CMG profit after tax up to £387k and EPS at 1.84p.
• SIS profit after tax rose to £2.3 million despite lower turnover.
• Content Creation growth, 18 US jurisdictions live, new titles coming.
• SIS cash improved to approximately £8.1 million by 30 November 2025 and a £35 million facility in place.
• CMG buyback at 50p looks value-accretive against 147p NAV per share.

Watch-outs

• UK racing remains challenging and could weigh on content revenues.
• SIS dividends were £1.7 million versus £3.1 million last year – sustainability to watch.
• Direct UK budget impacts were neutral, but shop numbers and revenue share are uncertain.
• India arbitration outcome is unresolved, with legal costs still impacting profits.
• CMG is not paying a dividend on these results, prioritising cash reserves.

Key numbers you should know

CMG profit after tax	£387k (2024: £283k)
CMG EPS	1.84p (2024: 1.35p)
CMG NAV per share	Approximately 147p (2024: 149p)
CMG cash at 30 June 2025	£206,650
SIS turnover	£190.5 million (2024: £234.1 million)
SIS operating profit	£3.2 million (2024: £3.5 million)
SIS profit after tax	£2.3 million (2024: £1.9 million)
SIS dividend declared	£1.721 million aggregate – CMG received approximately £0.35 million
SIS cash	£1.9 million at 31 March 2025; approximately £8.1 million at 30 November 2025
SIS bank facility	£35 million, expandable to £50 million

What could move the share price next

• New Competitive Gaming titles and further US licensing wins.
• Evidence that like-for-like operating profit at SIS is growing as guided.
• Clarity on UK shop numbers and racing revenue share post-budget.
• Any resolution in the India arbitration.
• Future SIS dividend levels and whether CMG resumes shareholder payouts.

AGM and documents

The AGM is scheduled for 11.00 a.m. on Friday, 30 January 2026 at 6 Stratton Street, London, W1J 8LD. The Annual Report and Financial Statements will be available at the company’s website.

www.cmg-plc.com