Catena Posts Decrease in Revenue for Q2 2023

The fast-growing company focused on producing dedicated content for the gambling market in the United States, Catena Media, released its latest financial report, revealing details regarding its performance for the second quarter of 2023 and the first half of the year. The new report, released Tuesday, reveals that the company’s revenue from continuing operations for Q2 2023, or the period between April and June, was €16.9 million ($18.4 million). A comparison to the corresponding period in Q2 2022 shows that this year, the revenue decreased by 16%.

Not unexpectedly, Catena’s North American revenue for the second quarter of this year marked a decrease as well. Overall, the company posted revenue for North America of €12.5 million ($13.4 million). Comparison year-over-year shows that the revenue decreased by 16% when compared to the €14.9 million ($16.2 million) result from the same period last year.

Judging by Catena’s recent financial report, organic growth from continuing operations for Q2 this year was negative 16%, while new depositing customers marked a year-over-year decrease of 31% to a total of 49,770. Adjusted EBITDA from continuing operations for Q2 this year hit €2.6 million ($2.8 million), a figure that represents a decrease of 60% when compared to the €6.5 million ($7.1 million) result from Q2 in 2022.

In its recent report, Catena also highlighted multiple significant events during the second quarter of this year. In mid-April, the company signed a long-term partnership with one of the largest online newspaper publishers in the United States, Lee Enterprises Inc. Then, in May, Catena appointed Erik Edeen to the role of interim group CFO. More recently, in May, Catena released new financial targets for the 2023-2025 period, while in June, it confirmed the repurchase of bonds.

The Company Remains Focused On Growing

Focusing on the bigger picture, the company released details regarding its performance between January and June this year. Overall, Catena posted revenue from continuing operations of €50.6 million ($55 million), a 9% decrease year-over-year when compared to the €55.9 million ($60.8 million) result from 2022. Not unexpectedly, the company’s revenue in North America dipped as well, decreasing by 7% to €41.5 million ($45.1 million) between January and June 2023 when compared to last year.

“Q2 was a quarter of further evolution for Catena Media as we continued to transition towards a net cash positive business focused on regulated markets in North America. The group capitalized on the annual interlude in the North American sports calendar to undertake significant operational and financial streamlining measures ahead of the NFL resumption in early September.“

Michael Daly, CEO of Catena Media

Michael Daly, Catena’s CEO, commented on the topic and explained that the company continues to follow its plan toward net cash positive within regulated gambling markets in North America. He highlighted that Catena seeks to optimize its capital structure and increase shareholder value by repurchasing bonds and share buybacks.

Daly acknowledged that after Q2 ended, the company divested its Australian and UK business. He spoke about the seasonality of sports that impacted the revenue from this segment. Still, Daly predicted strong growth of Catena and exceptional results in Q3 and Q4 as well, boosted by an increase in sports activities.