Catena Media experienced unprecedented success in its initial quarter, but the subsequent quarter’s performance fell significantly short of expectations.
For the three months concluding on June 30th, the firm’s income decreased by 5% compared to the same period in the previous year, reaching €28.9 million (US$29.4 million) from €30.4 million in 2021.
Adding to the concerns, the affiliate marketing entity witnessed a 40% plunge in earnings before interest, taxes, depreciation, and amortization (EBITDA), settling at €9.1 million for the quarter ending in June.
These figures stood in stark contrast to Catena’s exceptional first-quarter performance, where revenue surged by 11% year-over-year, hitting €45.2 million.
Despite this, Catena’s total revenue for the first six months of the year still reflected a 4% increase, reaching €74.1 million. However, first-half EBITDA experienced a 14% decline compared to the same period in 2021.
The news of Catena’s second-quarter difficulties might be unexpected for many, given the affiliate marketing company’s expansion into Louisiana and New York during the preceding quarter. This strategic move was anticipated to bolster second-quarter outcomes significantly, mirroring the positive impact observed in the first quarter.
Addressing the underwhelming results, Catena Media CEO Michael Daly stated: “The second quarter presented considerable challenges for Catena Media, with external influences broadly affecting the group’s revenues negatively by 5%, putting pressure on margins in certain sectors, and ultimately leading to an adjusted EBITDA reduction of 40%.”
He further elaborated: “The global economic landscape has deteriorated significantly, impacting several of our key markets and weakening the performance of some of our online sports betting and casino affiliation portfolios as we absorbed additional expenses to support new market entries and product enhancements.”
Catenas recent quarterly financial statement disappointed investors, causing a 3% dip in share value at the market’s start. The stock price swiftly recovered from these early declines. It’s probable that the earnings are connected to the ongoing strategic business analysis being conducted at one of their subsidiary companies.
