Catena Media, a leading affiliate marketing company, is poised to deliver impressive financial results in Q4. With a significant focus on the North American market, the company expects to generate $16.4 million, accounting for approximately 78% of its revenue. Furthermore, Catena anticipates total revenue of $23.8 million, a 15% increase compared to the previous year, while adjusted EBITDA is estimated to reach $9.4 million, reflecting a 14% year-on-year growth. However, the company cautioned about a decline in operating profit due to impairment charges of $7.8 million.
North American Success:
CEO Michael Daly expressed satisfaction with the strong performance of Catena Media’s core North American business in Q4. The launch of licensed online sports betting in Maryland in November, followed by the successful go-live for online sports betting in Ohio on January 1, 2023, contributed significantly to the company’s success. These developments marked the most successful state sportsbook launch in Catena’s history.
Strategic Expansion and Asset Sale:
In addition to its strong North American presence, Catena successfully pursued its expansion strategy in the region. The company completed a strategic review, which led to the sale of AskGamblers and related assets. This divestiture aligns with Catena’s growth strategy and provides a solid foundation for its activities in 2023.
Financial Advisory Partnership:
To further support its growth and explore strategic opportunities, Catena Media appointed Carnegie Investment Bank as its new financial advisor. The investment bank will assist Catena in evaluating potential options and engaging in discussions with interested third parties regarding the acquisition of certain assets, including the remaining assets of the company.
Catena Media’s Q4 results demonstrate the strength of its North American operations, driven by successful online sports betting launches in Maryland and Ohio. The company’s strategic focus on expansion and the recent divestiture of AskGamblers underline its commitment to growth and profitability. With Carnegie Investment Bank on board as a financial advisor, Catena is well-positioned to explore strategic opportunities and maximize value for its shareholders. As the company enters 2023, it looks poised to continue its impressive performance in the affiliate marketing industry.