Notwithstanding a 28% revenue reduction year-over-year in the third quarter of 2023, Catena Media maintains a positive net cash balance of €21.2 million.
The corporation’s overall operating revenue for the July-September 2023 timeframe amounted to €15.9 million, with the North American market representing a substantial 84% of this sum.
Catena Media’s Q3 2023 financial statement disclosed a 28% revenue contraction year-over-year, reaching €15.9 million (equivalent to roughly $17.4 million). When considering discontinued business segments, total revenue actually plummeted by 42% from Q3 2022 to €18.7 million. For comparative purposes, Q2 2023 experienced a 37% revenue decline inclusive of discontinued operations.
Throughout the current year, Catena Media has divested various assets, including its Italian digital sports wagering and casino ventures, which were sold for €19.8 million. Consequently, the affiliate marketing firm has been incorporating revenue generated from discontinued operations when evaluating earnings for preceding quarters.
Concentrating solely on ongoing business activities, revenue for Q2 2022 was €21.9 million, signifying that the 28% decrease remains constant.
The most pronounced reduction in Catena’s Q3 2023 report was observed in adjusted EBITDA. For continuing operations, adjusted EBITDA reached €3.1 million, representing a 65% decline year-over-year. This equates to a 19% margin; nevertheless, Catena Media emphasized that its North American operations sustained a robust 44% EBITDA margin in Q3 2023.
Despite the challenges encountered, Catena Media announced a net cash position of €21.2 million, encompassing an expected €46.6 million influx from asset sales between the present and 2025. However, as of September 30, 2023, Catena’s net debt amounted to €25.4 million.
Eighteen months ago, Catena Media began a process of optimizing its business and setting a course for the years ahead. Chief Executive Michael Daly, looking back on this time, notes that they have effectively become a streamlined, profitable organization with a strong cash flow. This advantageous position allows for upcoming investments in technological advancements, especially within their primary North American market.
Daly’s perspectives were featured in a CEO spotlight within Gaming America magazine’s September/October edition. He elaborated on his professional trajectory, his impact on Catena Media, and his outlook for the company’s future.
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