Malta-based Catena Media plc has released its third-quarter Interim Report, which outlines the company’s financial results from July to September 2023. The report reveals a 28% decline in group revenue for Q3.
The Catena Media press release primarily attributed this to a strategic shift in some North American contracts from cost-per-acquisition (CPA) to revenue share. Despite this adjustment and “intensified competition,” the North American EBITDA margin remained at 44%.
At the end of the period, Catena Media reported a net debt of €25.4 million. However, after adjustment for a scheduled inflow of €46.6 million in divestment proceeds, the company will have a net cash position of €21.2 million.
Catena Media concluded its strategic review on November 21 by agreeing to sell its Italian sports-betting and casino-gaming business for €19.8 million, in order to exit the Italian market. This raised an impairment charge of €2.7 million.
One of the transactions has been completed and the other is due to be completed before the end of this year. The company’s Italian assets are treated as discontinued in the report.
The sales of the company’s Italian assets comes as part of Catena Media’s attempts to streamline operations and focus on regulated markets in the Americas, an idea initiated in May 2022 through a strategic review. Michael Daly, CEO of Catena Media, reinforced this objective by commenting, “We believe stable regulated markets offer the best platform to drive sustainable growth in our business over the long term.”
The Q3 report supported this further; despite a 29% decrease in North American revenue, it still accounts for 84% of revenue from continuing operations. This comes on the back of moves like Catena Media acquiring U.S.-facing company Lineups.com.
During the strategic-review period from May 2022, Catena Media sold assets worth €76 million, repaid debt, and refocused the organization.
CEO Michael Daly said, “Today, we stand strong as a lean and robust organization that is net cash positive and geared to invest in future technologies to drive expansion in our core North American market.”
