Catena, a digital gaming customer acquisition firm, faced a challenging beginning to 2023, as both income and earnings from its active operations contracted in the initial quarter.
Income from these continuing activities witnessed a 5% reduction, while earnings experienced a steeper decline, plunging by 35% in comparison to the corresponding period the previous year.
The company’s comprehensive Q1 results were considerably influenced by the incorporation of discontinued business segments, mainly the divestment of its AskGamblers trademark. When accounting for these discontinued operations, Catena’s declared income actually expanded by 20% to €36.2 million. Nevertheless, concentrating solely on the ongoing primary business, income amounted to €35 million, mirroring the 5% decrease.
Profits before interest, taxes, depreciation, and amortization (EBITDA) for continuing activities also diminished by 7% to €20.5 million. Incorporating the discontinued operations, EBITDA underwent a more substantial fall of 24%, reaching €19.4 million.
The most pronounced effect was observed on Catena’s net income, which endured a substantial 35% reduction to €11.6 million for continuing activities. The inclusion of discontinued operations presented a more favorable outlook, with net income exhibiting a 10% rise to €22.9 million.
Although Catena’s income remains notably lower than its competitor Better Collective (below half), its net income, when encompassing discontinued operations, actually exceeds that of its rival. However, its EBITDA still trails by 41%.
Catena Media’s Chief Executive, Michael Daly, recognized a minor decrease in revenue compared to the previous year, ascribing it to the challenging contrast with the preceding year’s robust results. The introduction of internet sports wagering in New York and Louisiana at the start of 2022 had established a high standard.
Nevertheless, Daly emphasized the prosperous initiation in Ohio on January 1st as a significant triumph. Catena’s North American group took advantage of the Super Bowl in February, attaining one of their most influential launches to date, even though the total revenue fell below that of the New York introduction.
This follows the announcement of a new interim Chief Financial Officer after the exit of Peter Messners in February 2023.
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