Catena Media Publish Interim Q3 Financial Report
Catena Media plc has released its interim financial report, showcasing the outcomes of its strategic actions and financial performance.
Key movers include a 28 percent decrease in group revenue in Q3, largely due to a strategic shift in North America from CPA to revenue share contracts.
The completion of the sale of the group’s Italian online sports betting and casino business for €19.8 million (£17.29m) on November 21 marked the end of the strategic review initiated in 2022. This sale aligns with the group’s focus on regulated markets, which now comprise 90 percent of its revenue.
As of September 30, Catena’s net debt stood at €25.4 million (£22.16m). Key financial metrics for Q3, ending September 30, include a decrease in revenue from continuing operations to €15.9 million (£13.87m) and a 65 percent decrease in adjusted EBITDA to €3.1 million (£2.7m).
For January to September 2023, the group reported a 16 percent decrease in revenue from continuing operations to €62.3 million (£54.36m) and a 34 percent decrease in adjusted EBITDA to €23.7 million (£20.68m). The number of new depositing customers from continuing operations decreased by 24 percent.
Significant events during the third quarter include a share buyback program, asset divestments, and cost reduction initiatives.
Less is More
After the quarter, Catena announced key appointments and the completion of its share buyback program. The group also expanded its online sports betting affiliation in new markets like Kentucky and Maine. The strategic review, concluded with the sale of Italian assets, repositions Catena Media with a focus on growth in regulated markets.
Catena Media CEO Michael Daly commented: “It is 18-months since we announced our strategic review of the business and embarked on a journey that would streamline Catena Media and equip us for the next chapter in our story.
“That journey, during which we sold assets for €76 million, repaid debt and refocused the organisation, has come full circle.
“The divestiture of our Italian businesses completed the review process and finalised our strategic reset.
“Today, we stand strong as a lean and robust organisation that is net cash positive and geared to invest in future technologies to drive expansion in our core North American market.
“We believe stable, regulated markets offer the best platform to drive sustainable growth in our business over the long term.
“Predictable regulatory frameworks provide stability for operators and affiliates alike. They create a structure that allows Catena Media to respond effectively to market needs and to confront the operating challenges and opportunities we face in North America and beyond.”