Catena Media revenue falls 41%
Full-year revenue was €76.7m.
Malta.- The affiliate group Catena Media has reported a drop in annual revenue for 2023. Revenue from continuing operations came in at €76.7m, down by 22 per cent year-on-year. North American revenue represented 87 per cent of the total and was down by 21 per cent.
Adjusted EBITDA fell by 47 per cent to €25.4m, representing an adjusted EBITDA margin of 33 per cent. The group has updated its financial targets for 2024-2026. It expects double-digit organic growth in revenue and adjusted EBITDA for 2025 and 2026. It aims to develop a range of technical and data-based capabilities using AI while cost optimisation measures will continue.
Catena Media CEO Michael Daly said: “At Catena Media we are determined to be a leading force in this new landscape. We are currently implementing a wide-ranging internal investment programme – including large investments in both tech and AI – to fast-track our ambition to be the data- and technology-driven leader of online affiliate marketing in the sports betting and casino gaming space. These projects are significant in the context of our Q4 figures, which were disappointing and with which I am not satisfied.
“We anticipate a challenging reporting environment until the investments I have outlined gain traction in the second half of this year. In Q4, market headwinds caused revenue and EBITDA declines in our core North American market. Lower cost-per-acquisition (CPA) rates paid by operators again impacted revenue, as did stiffer competition directed against us as the established market leader. As mentioned above, we are responding to this competition to minimise the impact on market share.
“A strategic reboot on the scale that we have undertaken can take time and test the patience of employees and shareholders. Q4 was a difficult quarter, but I believe we are now turning the corner. My message today is that our goal is in sight: a leaner, nimbler multichannel Catena Media with the knowledge and technical infrastructure to thrive in our core regulated markets and to deliver a return to growth in the second half of this year.”
Sale of Catena’s Italian business
In November, Catena Media reached agreements to sell its Italy-facing operations for €19.8m. The sale, which includes the Superscommesse brand, follows the company’s strategic review, under which it decided to reduce its assets in Europe to focus on the North American market.
The Italian operations are being sold to two different buyers, with Oddschecker identified as the buyer of Superscommesse. Catena says that one of the deals has already been completed while the other will close by the end of the year.
The aggregate purchase prices for the sales will be paid in three tranches: €12.8m due in October and November 2023, €3.5m in the first quarter of 2024 and €3.5m in Q2. The entire Italian operation generated €7.8m in revenue and EBITDA of €3.4m in the 12 months ending September 2023.
