Catena, a leading affiliate marketing company in the iGaming industry, has released its Q1 2023 results, indicating a decline in overall performance when accounting for discontinued operations. Excluding assets such as the sold AskGamblers brand, Catena reported figures for both continuing and discontinued operations. While revenue from continuing operations experienced a slight decrease, revenue including discontinued operations showed a significant decline. EBITDA and net profit also reflected the impact of discontinued operations. Comparisons with rival Better Collective highlight the revenue gap but showcase Catena’s higher net profit, albeit with lower EBITDA.
Financial Performance:
Catena reported a 5% year-on-year decrease in revenue from continuing operations, amounting to €35 million. However, when including discontinued operations, revenue increased to €36.2 million, though still reflecting a 20% decline. EBITDA from continuing operations decreased by 7% to €20.5 million, while EBITDA including discontinued operations fell by 24% to €19.4 million. Net profit for the period from continuing operations decreased by 35% to €11.6 million, but net profit including discontinued operations rose by 10% to €22.9 million.
Comparison with Better Collective:
In comparison to rival Better Collective, Catena’s revenue was significantly lower, earning less than half. However, when considering net profit, including discontinued operations, Catena outperformed Better Collective. Catena’s EBITDA was 41% less than Better Collective’s, indicating a difference in operational efficiency.
Market Highlights and Challenges:
Catena Media CEO Michael Daly acknowledged the slight decline in group revenue, attributing it to challenging comparatives created by the launch of online sports betting in New York in Q1 2022 and the go-live in Louisiana in the same quarter. Notably, the legalisation of online sports betting in Ohio on January 1st was a major market highlight for Catena. The North American team’s dedicated efforts resulted in a successful launch, coinciding with the Super Bowl in February, although the revenue generated from Ohio was still behind that of New York.
Leadership Changes:
Catena recently appointed a new Interim CFO following the departure of Peter Messner, which was announced in February 2023. This change in leadership aims to ensure the company’s financial stability and continued growth.
Catena’s Q1 2023 results demonstrate a drop in overall performance when accounting for discontinued operations. The company experienced a decline in revenue, EBITDA, and net profit from continuing operations. However, when discontinued operations are considered, net profit showed an increase. While Catena’s revenue lags behind that of Better Collective, its higher net profit highlights its ability to optimize profitability. The challenges posed by the launch of online sports betting in certain states and the successful entry into the Ohio market reflect the dynamic nature of the iGaming industry. With a new Interim CFO in place, Catena aims to maintain financial stability and drive further growth in the coming months.