Catena Posts Weak Q4 Results, Reports Decrease in Revenue for 2023

Catena Media released its latest financial report, uncovering details regarding its performance for the fourth quarter and full year 2023. Released Tuesday, the new report acknowledged “weak” quarter results amid an ongoing investment that seeks to propel future growth and profitability.

Details disclosed by Catena reveal that its Q4 2024 revenue from continuing operations took a hit, decreasing by 41% to €14.5 million ($15.5 million). Not unexpectedly, the company’s North American revenue plummeted as well, decreasing to €12.3 million ($13.2 million). This result marked a year-over-year decrease of 43% when compared to the €21.5 million ($23 million) reported in North American revenue for Q4 in 2022.

Similarly, adjusted EBITDA from continuing operations also took a hit between October and December 2023. Catena revealed that its adjusted EBITDA for the aforementioned period halted at €1.5 million ($1.6 million) a result representing an 88% decrease when compared to the corresponding period in 2022.

The number of new depositing customers (NDCs) for Q4 2023 decreased as well. NDCs in Q4 2022 were 56,040, a figure that decreased by 43% to 32,032 for Q4 last year.

When it comes to the yearly performance, the latest financial update also revealed decreasing results. Between January and December 2023, Catena’s revenue was down year-over-year by 22% to €76.7 million ($82.2 million). North American revenue halted at €67.1 million ($71.9 million), down by 21%, while adjusted EBITDA from continuing operations marked a 47% dip to €25.4 million ($27.2 million). NDCs posted a decrease year-over-year to 184,257 in 2023. In contrast, the 2022 result was nearly 20% higher.

The Company Anticipates Resumption of Organic Growth

Michael Daly, Catena’s CEO, commented on the topic explaining that the latest results were “disappointing,” adding that he isn’t satisfied with the recently released figures. Yet, he highlighted an ongoing plan the company initiated in 2023 that involved investments in both artificial intelligence (AI) and technology.

“Rapid technological developments and the emergence of artificial intelligence (AI) are reshaping the media industry. For the online sports betting and casino gaming sector, the changes will be huge. At Catena Media we are determined to be a leading force in this new landscape.“

Michael Daly, CEO at Catena Media

Daly said that Catena wants to become a disruptor in the sports betting and gaming sector by leveraging innovative technology that can help reshape the verticals. He revealed that the aforementioned investments have already accelerated.

Catena’s CEO predicted that those investments would help position the company well for future growth. Daly predicted that the company would return to a long-term growth trajectory with the resumption of organic growth, expected around the second half of this year. Moreover, he said Catena expects to generate full year adjusted EBITDA in 2024 within the range of €20 million ($21.4 million) to €30 million ($32.2 million).