The leading gambling affiliate operator, Catena Media, released its latest interim report and provided an update on its strategic review Thursday.
Catena Media Posts Q3 Results
The company revealed its revenue for the third quarter hit €32.3 million ($33.4 million). A year-over-year comparison to the same period in 2021 showed that this year, the revenue decreased by 2%. Despite the decrease, the company reported strong performance from its North American operations. The revenue from North American operations was equivalent to 58% of the total revenue or €18.6 million ($19.2 million). Considering that in Q3, 2021, this revenue halted at €16.8 million ($17.4 million), a strong increase of 11% was observed this year.
Catena revealed that its organic growth in Q3 was negative 4%. If the German sports betting market is excluded, the company said that the organic growth is negative 3%. Adjusted EBITDA for the third quarter this year decreased by 29% hitting €11.7 million ($12.1 million). On the other hand, the company has also seen a decrease in new depositing customers (NDCs). In total, NDCs for the period July through September 2022 was 116,746, down 24% when compared to the 153,701 reported for the corresponding period in 2021.
Strategic Review near Completion, Layoffs Planned
It was back in May when Catena launched a strategic review for the company. At the time of the announcement, the company said it seeks to identify “potential transactions, structural changes, and other strategic initiatives” that can boost its shareholder value and revenue.
Now, as a part of its latest interim report, the company confirmed a reduction of the workforce within its European teams. Overall, the company unveiled its plans to reduce its European headcount by 25%, a measure pushed by the strategic review. This is expected to save some €5.5 million ($5.7 million). Catena explained that the change is expected to be in effect from the first quarter of 2023.
“The restructuring measures led to a reduction in European headcount of more than 25 percent and generated combined annualized savings of €5.5 million. These savings, which were above our initial target of €5 million, will apply in full from January 2023.“
Michael Daly, CEO at Catena Media
Michael Daly, Catena’s CEO, explained that the strategic review of the company’s operations is approaching its completion. He pointed out that different assets “are currently in a divestment phase” and revealed that an external advisor is managing the process. Daly vowed Catena will share more details regarding the results of the review soon.
At the same time, Daly explained that the strategic review seeks to optimize “the business to capitalize on the growth of online sports betting and casino in North America,” a market that continues to grow. The company’s boss acknowledged that the Latin American markets hold potential for future growth. ” We continue to build for the future, and do so from a position of unprecedented strength,” added Daly. Finally, he predicted strong growth for the company in North America and beyond.