Catena Experiences a Drop in Q2 2023 Earnings
Spicing Up the Financials: π²πΈ
The thriving online gambling content powerhouse, Catena Media, unveiled its Q2 2023 and 1H 2023 financial report yesterday, offering a sneak peek into its financial journey so far. The report disclosed that β¬16.9 million ($18.4 million) was raked in from operations during Q2 2023, showing a 16% plunge compared to the same period last year.
The company's North American revenue for Q2 2023 also dipped, yielding β¬12.5 million ($13.4 million). A comparison with Q2 2022 results showed a 16% decline, too.
Catena's organic growth from continuing operations in Q2 2023 slipped by 16%, and the new depositing customers count plummeted by 31% to reach a total of 49,770. The Adjusted EBITDA from continuing operations for Q2 2023 amounted to β¬2.6 million ($2.8 million), a substantial 60% slide from the β¬6.5 million ($7.1 million) recorded in Q2 2022.
In its Q2 2023 report, Catena called attention to a few important events that took place during the April-June duration. Mid-April saw the signing of a long-term partnership with the towering online newspaper publisher in the United States, Lee Enterprises Inc.aptly followed by the appointment of Erik Edeen as interim group CFO in May. Interestingly, in May, Catena announced new financial targets for 2023-2025, and in June, it confirmed the repurchase of bonds.
The Journey Isn't Over Yet:
Peeking at its income between January and June this year, the company reported a β¬50.6 million ($55 million) revenue from continuing operations, indicating a 9% slump year-over-year compared to the β¬55.9 million ($60.8 million) recorded in 2022. Not surprisingly, the company's North American revenue dipped as well, with a decrease of 7% reaching β¬41.5 million ($45.1 million) between January and June 2023 when compared to last year.
Michael Daly, Catena's CEO, expressed optimism regarding the company's ongoing quest toward a net cash positive business in North America's regulated gambling markets. He emphasized that Catena intends to optimize its capital structure and enhance shareholder value by repurchasing bonds and share buybacks.
Daly acknowledged that after Q2 ended, the company disposed of its Australian and UK business. He spoke of the seasonality of sports that affected the revenue from this segment, but he forecasted robust Catena growth and remarkable results in Q3 and Q4 2023, thanks to an uptick in sports activities. π₯π°π²
- Despite the 16% decrease in Adjusted EBITDA from continuing operations in Q2 2023 compared to the previous year, Catena Media has set new financial targets for the years 2023-2025.
- The decrease in the company's North American revenue for both Q2 2023 and the first half of 2023 signifies a slump in the finance sector of the casino-games business.
- Catena Media's reported revenue from continuing operations in the first half of 2023 indicates a 9% decrease year-over-year, showing a downturn in the regulated markets.
- The count of new depositing customers in Q2 2023 saw a plummet of 31%, suggesting a lessened interest in investing in casino-and-gambling businesses.
- Michael Daly, the CEO of Catena Media, remains optimistic about the company's future growth in North America's regulated gambling markets, with a focus on optimizing capital structure and enhancing shareholder value.
