Amid Q2 Fiscal Storm, Catena Media Marches On Towards Its North American Destiny

Shares at Swedish-origin iGaming Affiliate Catena Media have plummeted 20 percent, and sliding, on the release of precipitous Q2 financials that saw company revenues tumble by some 16 points, year-on-year.

The market response was a telling lack of confidence in Catena’s avowed aim to refocus its activities on North America’s booming regulated sports betting and iGaming markets.

Catena generated revenue of €16.9 million (£14.41m) in Q2, ending 30 June, with Adjusted EBITDA falling 60 percent to €2.6 million (£2.21m), compared to the second quarter of 2022.

Even more prescient, New Depositing Customers (NDCs), a key indicator of any gaming business heading in the right direction, crashed by a third to just under 50,000 punters.

Earlier this month, Catena off-loaded its UK and Australian verticals to Manchester, UK-based Moneta Communications for €6 million (£5.11m) to solidify its corporate refocussing.

But, if anything, the move, parlayed as cost-cutting, came too late to ameliorate Catena’s dire Q2 results, which saw its lauded North American revenue, representing some three-quarters of total group revenue, slump 16 percent to €12.5 million (£10.66m), year-on-year.

Looking at a wider H1 spread, Catena’s revenue fell by nine percent to €50.6 million (£43.15m), compared to the first half of 2022. North America revenue dropped seven percent to €41.5 million (£35.39m).

“[Our] operational performance in Q2 reflected the backdrop of reduced marketing spend by betting operators in North America,” explained Catena Media CEO Michael Daly.

“This market-wide tightening temporarily dampened search volume and levels of new depositing customers, particularly in sports.

“I expect our EBITDA margins to be far stronger in Q3, and especially in Q4, when sports betting activity will be higher,” he affirmed.

With the divestiture of UK and Australian “liabilities” hoping to save the iGaming Affiliate some €4 million a year (£3.41m), it’s hoped that Daly’s bold, if delayed, move amid the storm and chaos of market forces will chart a passage into calmer waters by full year’s end.

And that Daly, in his own words, can “deliver progress”.