Catena Media reported a 14% year-over-year drop in revenue during the second quarter earnings call, posting €12.8m in revenue.

The company has been undergoing a rapid adaptation period, faced with numerous technical challenges traced back to Google’s changing algorithms that have hit some of the best-established affiliate companies in the sector.

Catena Grapples with Past Mistakes Under New Leadership

Catena has been no exception with the company seeing a decline in its operational results. Regardless, Catena has been adapting quickly under the leadership of Manuel Stan, the company’s new CEO who took over the company on July 1, and who has remained somewhat critical of the previous leadership.

Stan argued that his predecessor, Pierre Cadena, had indeed shown skilled leadership but made the mistake of spreading the group’s resources “too thin,” the incumbent argued somewhat critically.

“The new board and management agree on the need for a laser-sharp operating focus. We are now in a stronger position to concentrate on the core products and drive revenue,” Stan said during the earnings call.

Presently, 88% of Catena Media’s revenue is derived from the North American market which continues to be the bulk of the company’s operations. However, revenue in the market fell by 11% to €11.2m, the company’s earnings update reflected.

More importantly, the company saw a 17% decline in the number of depositing customers, down to 31,475 from 36,935 a year ago. Both numbers relate to the second-quarter number of depositing customers.

Similarly, EBITDA shrunk by more than 67% to €700,000 the company noted in the update. Stan has tried to balance between offering critics and leadership direction, arguing that when he took over the company, he saw a lot of “energy” directed in certain areas that may not be always ideal.

Strategic Review Initiated, Hopes for Better Results Raised

However, Stan has been able to organize the Board of Directors and complete an extensive review that will allow the company to shed some of its low-performing domains and move team members and resources into the company’s best product instead.

Importantly, though, Stan said that the company has been able to drive some important changes towards the end of the second quarter that should show up on the balance sheet in Q3. Some important media partnerships were negotiated, Stan explained.

The company is also rethinking its sports betting strategy and is looking to replicate the successful model it used to promote online casino products into the segment right now. Regardless of these rather moribund results, the company remains optimistic about the future.  

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Catena Media released its latest financial report, uncovering details regarding its performance for the fourth quarter and full year 2023. Released Tuesday, the new report acknowledged “weak” quarter results amid an ongoing investment that seeks to propel future growth and profitability.

Details disclosed by Catena reveal that its Q4 2024 revenue from continuing operations took a hit, decreasing by 41% to €14.5 million ($15.5 million). Not unexpectedly, the company’s North American revenue plummeted as well, decreasing to €12.3 million ($13.2 million). This result marked a year-over-year decrease of 43% when compared to the €21.5 million ($23 million) reported in North American revenue for Q4 in 2022.

Similarly, adjusted EBITDA from continuing operations also took a hit between October and December 2023. Catena revealed that its adjusted EBITDA for the aforementioned period halted at €1.5 million ($1.6 million) a result representing an 88% decrease when compared to the corresponding period in 2022.

The number of new depositing customers (NDCs) for Q4 2023 decreased as well. NDCs in Q4 2022 were 56,040, a figure that decreased by 43% to 32,032 for Q4 last year.

When it comes to the yearly performance, the latest financial update also revealed decreasing results. Between January and December 2023, Catena’s revenue was down year-over-year by 22% to €76.7 million ($82.2 million). North American revenue halted at €67.1 million ($71.9 million), down by 21%, while adjusted EBITDA from continuing operations marked a 47% dip to €25.4 million ($27.2 million). NDCs posted a decrease year-over-year to 184,257 in 2023. In contrast, the 2022 result was nearly 20% higher.

The Company Anticipates Resumption of Organic Growth

Michael Daly, Catena’s CEO, commented on the topic explaining that the latest results were “disappointing,” adding that he isn’t satisfied with the recently released figures. Yet, he highlighted an ongoing plan the company initiated in 2023 that involved investments in both artificial intelligence (AI) and technology.

“Rapid technological developments and the emergence of artificial intelligence (AI) are reshaping the media industry. For the online sports betting and casino gaming sector, the changes will be huge. At Catena Media we are determined to be a leading force in this new landscape.“

Michael Daly, CEO at Catena Media

Daly said that Catena wants to become a disruptor in the sports betting and gaming sector by leveraging innovative technology that can help reshape the verticals. He revealed that the aforementioned investments have already accelerated.

Catena’s CEO predicted that those investments would help position the company well for future growth. Daly predicted that the company would return to a long-term growth trajectory with the resumption of organic growth, expected around the second half of this year. Moreover, he said Catena expects to generate full year adjusted EBITDA in 2024 within the range of €20 million ($21.4 million) to €30 million ($32.2 million).

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Vermont online sports betting has finally become a reality, allowing local customers to play with three of America’s largest operators. In addition to that, Catena Media, one of North America’s most influential sports betting affiliates, has now launched online sports betting affiliation in the state.

The short list of online sports betting operators available in The Green Mountain State includes Fanatics, FanDuel and DraftKings. As a leading affiliate, Catena Media has existing agreements with both FanDuel and DraftKings.

According to the affiliate’s announcement, all of its national brands are “carrying strong Vermont content” to celebrate the launch of online sports betting in the state. Catena Media added that this coverage is complemented by content published by the group’s media partners, including NJ.com and TheSportingNews.com.

Catena Media pointed out that Vermont is the last of the New England states to launch online sports betting. The affiliate specialist also pointed out that The Green Mountain State is the first new US betting market to launch in 2024.

The state has an adult population of roughly half a million, which will now be able to enjoy the three sportsbooks’ offerings and Catena Media’s content.

Ryan Harper, Catena Media’s vice president for North America, commented on Catena Media’s foray into the state of Vermont, praising the interest in affiliation from both the industry and sports bettors.

Initial interest from both the industry and sports bettors in Vermont is strong. Vermonters have enjoyed online daily fantasy sports products and horse-race wagering so are no strangers to the online market.

Ryan Harper, VP for NA, Catena Media

Having launched in Vermont, Catena Media’s affiliation services are now available in over 28 US states and Canadian provinces. The company remains bullish on expanding in North America and launching in new betting markets.

Speaking of new betting markets, North Carolina is also set to launch sports betting soon, becoming the next state where wagering on professional sporting events is legal. Speaking of North Carolina, the state failed to legalize Las Vegas-style resorts but concerned customers believe that lawmakers are not ready to give up and continue to lay down the foundations for such projects.

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The leading iGaming affiliate, Catena Media, announced an important senior-level appointment today. The company confirmed that its board of directors decided to appoint the seasoned executive, Sean Hurley, as non-executive director. Joining Catena, he fills in the role that was vacated by Per Widerström back in August this year. At the time, Widerström said that he decided to step down and take on the position of chief executive officer at 888 Holdings.

Catena confirmed that Hurley’s appointment to its board of directors will come into effect once the required regulatory filings with the Malta Business Registry are completed. The company revealed that the term of the new non-executive director would last through the end of its next annual general meeting. This requirement, Catena said, is in line with the Maltese Companies Act as well as the company’s articles of association.

Ahead of the appointment of the new non-executive director, Catena confirmed the divestment of its Italian assets earlier this month. At the time, the company revealed that the divestment of its casino and sports assets in Italy was completed in two details totaling $21.7 million. This achievement also marked the completion of its strategic review that sought to boost the company’s focus on markets across the Americas.

Hurley Is Thrilled to Join Catena’s Board of Directors

Becoming a part of the board of directors at Catena brought excitement for Hurley. He said that it is thrilling to join the company at such an important phase in its growth and development. Finally, Hurley explained: “I am delighted to have been asked to contribute my expertise as the company moves forward and further strengthens its position as a leading affiliate in North America.”

“Catena Media has entered an exciting new phase in its development and has a promising future ahead.“

Sean Hurley, non-executive director at Catena Media

As a seasoned expert, Hurley brings a wide range of skills and knowledge from the betting and gaming sectors. Overall, he spent more than 13 years within the vertical, proving himself as a leading advisor, experienced executive and investor. Throughout his extensive career within the sports betting, casino and social gaming sectors, Hurley held different important senior-level positions related to affiliate and business-to-consumer relations. He also held important positions related to the business-to-business sector.

Earlier this month, Catena posted its Q3 results, showing a revenue decrease of 28% year-over-year. Besides revenue, the company’s adjusted EBITDA from continuing operations halted at $3.4 million, representing a decrease of 65%.

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Catena Media, a company that creates content-rich websites that help users navigate the complex world of online sports betting and casino gaming, has published its Q3 results, reporting a favorable net cash position despite a Q3 revenue drop.

As reported by the company, its revenue decreased by 28% year-on-year to EUR 15.9 million ($17.4 million, current rates). The company attributed the decline to the transition of some contracts in North America from CPA to revenue share. Adjusted EBITDA from continuing operations decreased by 65% to EUR 3.1 million ($3.4 million), corresponding to a margin of 19%.

North American revenue plummeted by 29% to EUR 13.3 million ($14.5 million). In addition, the company reported an NA EBITDA margin of 44% despite the transition and intense competition. Meanwhile, the number of depositing customers in the NA region was 17% up. However, the total number of new depositing customers (NDCs) from continuing operations totaled 44,986, a decrease of 34%.

Earnings per share from continuing operations totaled EUR -0.02 ($-0.022). Catena Media also noted that 90% of its group revenue came from regulated markets.

At the close of the quarter, Catena Media reported net debt of EUR 25.4 million ($27.8 million) and concluded the quarter with a net cash position of EUR 21.2 million ($23.2 million). On September 30, Catena Media had EUR 33.5 million ($36.7 million) in cash and cash equivalents.

After Q3, the company finalized the sale of its online sports betting and casino gaming business in Italy for EUR 19.8 million ($21.7 million). At the beginning of Q4, Catena Media continued to invest in the development of an AI-based affiliation platform.

Catena Media also published its year-to-date results, highlighting revenue from continuing operations of EUR 62.3 million ($68.3 million), representing a 16% decrease from the prior-year period. NA revenue decreased to EUR 54.8 million and the number of NDCs from continuing operations declined by 24% to 186,129.

Adjusted EBITDA from continuing operations decreased by 34% to EUR 23.7 million ($26 million), translating to a margin of 38%.

In Q3, Catena Media initiated a share buyback program and agreed to divest its UK and Australian sports betting brands in a EUR 6 million ($6.57 million) deal. The quarter also saw the company part ways with Per Widerström who now heads 888.

In August, Catena Media penned a media partnership with The Sporting News. The following month, the company launched sports betting affiliation in Kentucky.

Soon after the conclusion of the quarter, Catena Media announced the completion of its share buyback program, noting that it had repurchased 2,510,116 Catena Media shares during the period from July 17 to October 31.

Michael Daly, Catena Media’s chief executive, commented on the report, noting that it has been 18 months since the company commenced the strategic review and streamlining of its business. He said that the company will now focus on more stable markets that provide opportunities for stable growth.

Predictable regulatory frameworks provide stability for operators and affiliates alike. They create a structure that allows Catena Media to respond effectively to market needs and to confront the operating challenges and opportunities we face in North America and beyond.

Michael Daly, CEO, Catena Media

In other news, Catena Media recently joined forces with five other affiliates to form the Responsible Gambling Affiliate Association.

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The fast-growing company focused on producing dedicated content for the gambling market in the United States, Catena Media, released its latest financial report, revealing details regarding its performance for the second quarter of 2023 and the first half of the year. The new report, released Tuesday, reveals that the company’s revenue from continuing operations for Q2 2023, or the period between April and June, was €16.9 million ($18.4 million). A comparison to the corresponding period in Q2 2022 shows that this year, the revenue decreased by 16%.

Not unexpectedly, Catena’s North American revenue for the second quarter of this year marked a decrease as well. Overall, the company posted revenue for North America of €12.5 million ($13.4 million). Comparison year-over-year shows that the revenue decreased by 16% when compared to the €14.9 million ($16.2 million) result from the same period last year.

Judging by Catena’s recent financial report, organic growth from continuing operations for Q2 this year was negative 16%, while new depositing customers marked a year-over-year decrease of 31% to a total of 49,770. Adjusted EBITDA from continuing operations for Q2 this year hit €2.6 million ($2.8 million), a figure that represents a decrease of 60% when compared to the €6.5 million ($7.1 million) result from Q2 in 2022.

In its recent report, Catena also highlighted multiple significant events during the second quarter of this year. In mid-April, the company signed a long-term partnership with one of the largest online newspaper publishers in the United States, Lee Enterprises Inc. Then, in May, Catena appointed Erik Edeen to the role of interim group CFO. More recently, in May, Catena released new financial targets for the 2023-2025 period, while in June, it confirmed the repurchase of bonds.

The Company Remains Focused On Growing

Focusing on the bigger picture, the company released details regarding its performance between January and June this year. Overall, Catena posted revenue from continuing operations of €50.6 million ($55 million), a 9% decrease year-over-year when compared to the €55.9 million ($60.8 million) result from 2022. Not unexpectedly, the company’s revenue in North America dipped as well, decreasing by 7% to €41.5 million ($45.1 million) between January and June 2023 when compared to last year.

“Q2 was a quarter of further evolution for Catena Media as we continued to transition towards a net cash positive business focused on regulated markets in North America. The group capitalized on the annual interlude in the North American sports calendar to undertake significant operational and financial streamlining measures ahead of the NFL resumption in early September.“

Michael Daly, CEO of Catena Media

Michael Daly, Catena’s CEO, commented on the topic and explained that the company continues to follow its plan toward net cash positive within regulated gambling markets in North America. He highlighted that Catena seeks to optimize its capital structure and increase shareholder value by repurchasing bonds and share buybacks.

Daly acknowledged that after Q2 ended, the company divested its Australian and UK business. He spoke about the seasonality of sports that impacted the revenue from this segment. Still, Daly predicted strong growth of Catena and exceptional results in Q3 and Q4 as well, boosted by an increase in sports activities.

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Owing to a new partnership with The Sporting News, Catena is bringing home two important achievements – one the opportunity to further expand across North America as a whole, and two – a deeper reach into Latin American online betting and casino markets, owing to the new partner’s well-established footprint in both regions. This new opportunity comes as Catena Media has recently completed a share buyback program strengthening its financial standing along the way.

Creating Value Added Editorial and Digital Content

The partnership will see The Sporting News and Catena Media create dedicated digital content produced by Catena Media’s seasoned team of experts who will comment on a range of topics, including fantasy sports, traditional sports, and online casinos. This content will be distributed throughout The Sporting News’ assets, such as websites, digital and social channels.

Catena Media will focus on both advertorial and editorial content that elevates the two partners’ respective brands and boosts awareness, delivering value to customers.

Although the primary focus of the partnership is on the United States, with the duo working on reaching sports fans across hockey, golf, tennis, college sports, basketball, football, and others, there will also be a significant focus put on Latin American countries – including Mexico, Argentina, and Brazil. Commenting on this opportunity, Catena Media VP North America Ryan Harper outlined the good that this alliance will bring for both brands:

The Sporting News is one of the oldest names in sports publishing in the US and we’re delighted to have them as a core media partner. Their close to 45 million unique users per month give us access to a large audience that will enable us to compete directly with some of the top sports publishing companies in the world.

Catena Media VP North America Ryan Harper

Both Companies Share Some Passion for Sports Internationally

The Sporting News COO Shaun Koiner has welcomed the partnership with a similar upbeat message. Koiner said that The Sporting News is a passionate publication about sports and that this tie-up with Catena Media made a lot of sense as both companies undertake to expand significantly in the regulated sports betting, fantasy, and gaming markets across the region.

“From day one, our objectives have been aligned and we’re incredibly excited to see where this can take us, not only in the US but also as we look to expand internationally,” Koiner concluded. Catena is all systems go in North America after the company divested its units in Australia and the United Kingdom, vowing to focus further on the dynamic market in the region instead.

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Such a strategic move should have many significant long-term benefits to the organization, aligning with its goals to streamline its business and refocus on core markets. A sturdy financial foundation will be instrumental in Catena Media’s planned 2024 North Carolina launch, requiring significant capital and lasting shareholder confidence.

The Company Completed Its Short-Term Objectives

Catena Media’s shareholders approved the share buyback program during the extraordinary general meeting on 12 July, following an initial resolution from 24 May. The organization noted that the initiative aimed to improve shareholder value while optimizing the underlying capital structure by reducing its share capital. To that end, Catena Media planned the subsequent cancellation of repurchased shares.

During the designated buyback period, Catena Media effectively repurchased 264,969 ordinary shares. The company now has 2,053,976 ordinary shares, while 78,769,812 outstanding shares remain available. This measured approach reflects the organization’s commitment to prudent financial management and its dedication to providing long-term shareholder value.

Carnegie Investment Bank AB facilitated all share repurchases on Nasdaq Stockholm on behalf of Catena Media, guaranteeing a fair and transparent process. The executed buyback demonstrates the company’s confidence in its prospects and underscores its proactive approach to optimizing its capital structure and aligning its financial strategies with its growth objectives. 

Significant Corporate Debt Presents a Pressing Concern

Catena Media’s dedication to prudent financial practices and its focus on generating sustainable value has positioned the company as a leader in the competitive iGaming affiliate marketing sector. Its Q1 2023 financial results reflected significant room for growth despite the dip in revenue. Catena CEO Michael Daly was optimistic about the company’s prospects, predicting new successes.

A stable financial foundation should prove instrumental for Catena’s long-term ambitions. The affiliate is preparing for a 2024 North Carolina launch, hoping to leverage the state’s significant potential. However, Catena’s large corporate debt still presents significant challenges, and its board is considering every avenue to tackle this problem.

As Catena Media continues to navigate the dynamic landscape of the iGaming industry, its commitment to responsible financial management and value creation remains steadfast. With the completion of this share buyback program, the company is well-positioned to pursue its strategic objectives, leverage emerging market opportunities, and contribute to the continued growth and innovation within the affiliate marketing sector.

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Catena Media, a global leader in generating high-value leads for operators of online casino and sports betting platforms, has unveiled a new SEK 55 million ($5.36 million, current conversion rates) share buyback program.

The buyback was approved by the company’s board of directors during the extraordinary general meeting on July 12 and following an initial resolution from May 24.

As announced by the company, the share buyback program will be managed by a third-party investment firm or credit institution that will independently make decisions on the timing of the buybacks. Any acquisition of Catena Media’s own shares will be made on Nasdaq Stockholm, Catena Media added.

Catena Media also noted that the goal of the initiative is to improve shareholder value while optimizing the company’s capital structure through a reduction of its share capital. To that end, Catena Media also plans subsequent cancellation of repurchased shares.

Catena Media explained that the program will take all applicable regulations in mind, including the rules of Nasdaq’s Nordic Main Market Rulebook for Issuers of Shares.

The Program Must Follow Five Conditions

Catena Media outlined five major conditions that its share buyback program must follow:

First of all, the buybacks will be made on one or several occasions by December 31. In addition, the maximum price of shares that the company may buy back is SEK 55 million ($5.36 million).

Furthermore, Catena Media noted that shares may be repurchased to the extent that Catena Media’s holdings of its own shares do not surpass 10% of its total issued share capital and that the total number of shares should not exceed 7,203,534 shares.

The fourth condition is that Catena Media may only repurchase shares at a price within the price interval recorded on Nasdaq Stockholm. Finally, Catena Media must make all payments in cash.

Catena Media noted that it currently holds around 0.8% of its ordinary shares (614,193). For reference, the company has a total of 78,769,812 outstanding shares.

The company promised to keep releasing updates on the repurchases of its own shares, as required by Nasdaq Stockholm’s rules.

Last month, Catena Media confirmed its plans to launch in North Carolina next year. The announcement coincided with the legalization of betting and the expected launch of a local market in 2024.

In May, the company published its Q1 report, demonstrating strong results in spite of a slight revenue dip.

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Catena Media, a company delivering traffic to iGaming brands and financial services, has announced a new appointment. The affiliate will be joined by the skilled Erik Edeen who will serve as its interim chief financial officer.

Erik Edeen, who is set to step in as interim CFO, holds a Master of Business and Economics with a major in Financial Accounting from Uppsala University. Furthermore, he is a seasoned finance veteran who has worked in various finance-related roles at many companies. His impressive track record has seen him work with corporations such as ICA Gruppen AB and Investor AB, among others.

With over 16 years of experience in leading financial management roles, Edeen boasts a variety of other experiences as well. In recent times, he served as a strategic advisor to a high-profile media corporation, Catena Media noted.

CFO Messner to Leave the Company

Edeen will step into office on May 22, 2023, and will be responsible for the company’s finance. In this position, the new hire will succeed Peter Messner who is departing from the company.

The outgoing CFO served in this position for over three years, having joined Catena Media in April 2020. While his exit was announced in February, Messner will remain on board until June, ensuring a smooth transition of responsibilities.

Michael Daly, Catena Media’s chief executive officer, commented on that:

Given our closer focus on the North American market, we have agreed that this is the right time to make a transition in our financial leadership.

Michael Daly, CEO, Catena Media

Daly thanked Messner for his contribution to the company’s tremendous recent successes and wished him all the best.

Edeen isn’t a stranger to Catena Media and has previously worked with the company. Between 2019 and 2020, the finance expert had a short stint as the affiliate’s interim CFO, filling the position prior to Messner’s appointment.

Daly welcomed Edeen to the company, saying that he is excited to have him back. The CEO praised the appointee’s experience, saying that it makes him perfectly suited to be a part of Catena’s leadership.

I’m excited to welcome Erik as our interim CFO. His long professional career and past experience of Catena Media will make him a valuable member of the executive management team.

Michael Daly, CEO, Catena Media

In February, the Danish company Better Collective invested in Catena Media, securing a 5% stake in the affiliate company. Better Collective, which is one of Catena Media’s major competitors, released only a short statement on the matter, saying that it is content with the investment and doesn’t plan to further discuss it.

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