Catena Media Soars in North America
Catena Media shares preliminary Quarter 4, 2022 outcomes
In a bold move, Catena Media has shared its preliminary financial results for the last quarter of the year. The full report is set to release on February 22, 2023.
North America Remains the Focus
The preliminary results show that Catena Media is thriving in North America, its primary market. The company's revenue from the region skyrocketed by 31%, reaching $16.4 million. This region accounted for a whopping 78% of Catena Media's total revenue from continuing operations.
Total group revenue from continuing operations was a robust $23.8 million, marking a 15% year-on-year increase. Additionally, Catena reported an adjusted EBITDA of $9.4 million from continuing operations, reflecting a 14% year-on-year increase. This figure also represents an EBITDA margin of 39%.
Total adjusted EBITDA including discontinued operations amounted to $13.2 million, according to the preliminary results, with a margin of 41%.
Catena media pointed out that discontinued operations include divested European grey-market performance marketing assets, AskGamblers, and its related brands, and the Financial Trading segment.
The company also highlighted a reduction in operating profit due to non-cash impairment charges on goodwill of $7.3 million and on other intangible assets of $10.7 million, according to IAS 36. These writedowns are a result of the company's restructuring efforts in Europe, particularly in a casino asset, and the Financial Trading segment, which is set to be sold.
A Successful Strategy
Michael Daly, Catena Media's CEO, praised his team for their remarkable performance in North America. He commended the company's successes in various states.
"We saw significant uplift from the launch of licensed online sports betting in Maryland in November and a strong run-up to the go-live for online sports betting in Ohio on January 1, 2023, which delivered our best-ever launch period for a US state sportsbook launch," Daly said.
Daly concluded that Catena Media had managed to expand in North America while divesting less-important assets. The company, which has long been striving to streamline its business, is pleased that its strategy is proving to be successful.
Lastly, Catena Media noted that the numbers provided are still subject to change, as they are preliminary and unaudited results. The company reiterated that the definitive numbers will be published in February.
Insights:
- Expansion Strategy in North America: Continued and focused effort on North American markets with flagship brands to exploit perceived high potential[1].
- Asset Divestment and Cost Optimization: Implementation of efficiency and cost optimization measures, which likely include divesting non-core or underperforming assets to ensure profitability[3].
- Financial Performance Impact in Q4 2022: No explicit figures or outcomes for Q4 2022 were disclosed, but the measures announced imply the company was responding to operational and financial pressures around that period[1][3].
- With the success of their expansion strategy in North America, Catena Media has reported a significant increase in sportsbook revenue, which accounted for 78% of their total revenue from continuing operations.
- Beyond its thriving sportsbook operations, Catena Media has also been actively involved in the casino business, a testament to their diverse operations in the broader finance and business sector, with technology playing a crucial role in facilitating these activities.
- Catena Media's CEO, Michael Daly, attributes the company's success in North America to strategic cost optimization measures, including the divestment of less-important assets, which have allowed them to improve profitability and streamline their business operations.
