Catena Media has reported a year-on-year revenue decrease of 28% for Q3 2023, amounting to €15.9 million ($17.4 million). When factoring in discontinued operations, the total revenue decline is 42% from Q3 2022 to €18.7 million. This comes on the heels of several asset sales this year, including the divestment of Catena’s Italian online sports betting and casino business for €19.8 million.
Revenue Overview:
In Q2 2023, revenue, including discontinued operations, witnessed a 37% decrease. The strategic decision to sell off assets, reflected in the revenue figures, aligns with Catena Media’s ongoing efforts to streamline operations. The Q3 2023 report accounts for earnings from discontinued operations when reflecting on revenue from previous years.
Adjusted EBITDA Decline:
The Q3 2023 report highlights a substantial decline in adjusted EBITDA from continuing operations, totaling €3.1 million, down 65%. Despite this, Catena Media emphasizes that its North American EBITDA margin remains robust, standing at 44% in Q3 2023.
Financial Position and Net Debt:
Catena Media reports being in a net cash position of €21.2 million, considering an anticipated cash inflow of €46.6 million from divestment proceeds expected between now and 2025. However, as of September 30, 2023, the net debt stood at €25.4 million, underscoring the impact of ongoing strategic adjustments.
CEO’s Perspective:
CEO Michael Daly reflects on the results, noting that 18 months after the strategic review and streamlining initiatives began, Catena Media stands as a lean and robust organization. He emphasizes the company’s positive cash position and its readiness to invest in future technologies for expansion, particularly in its core North American market.
Catena Media’s Q3 2023 report reflects the outcomes of its strategic initiatives, including asset divestments and operational streamlining. The decline in revenue and EBITDA from continuing operations is contextualized within the broader strategy to focus on core markets and enhance the company’s financial resilience. The net cash position and planned investments position Catena Media for future growth and technological advancements.