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Affiliate Monitor Company-by-company Q3 results analysis
Company by company Q3 results analysis
● Catena Media ● Better Collective ● Gambling . com Group
● GiG Media ● Raketech ● Acroud ● FansUnite ● XLMedia
Catena Media
Jam tomorrow
PART TWO
The ending of the strategic review brings an end to the asset sales but it hasn ’ t brought an end to the sense of decline that still appears to cloak Catena Media like a third quarter-appropriate autumn mist .
The company would almost certainly have preferred to be talking up its prospects in North America where Catena is now almost entirely focused . But the figures from the past three months point to its continuing troubles in producing the numbers to justify the positive spin .
Revenues for the three months to June declined 28 % to € 15.9m which the company said was largely due to a “ strategic transition ” to revenue share over CPAs . Adjusted EBITDA was severely impacted by the move , off by 65 % to just € 3.1m . The downturn continued into October with revenues down 37 %.
Of note , the actual year-on-year revenue decline was nearly 60 % when the asset sales are taken into account .
OF NECESSITY
On the call with analysts , CEO Michael Daly hinted that the move to revenue share was driven by necessity , saying that on the sports affiliate side , rates for CPA deals were down as much as 25 %. “ This only further supports our prior decision to move towards revenue share starting this NFL season ,” he suggested .
The reasoning behind switching to more revenue share agreements over CPAs – whether by design or by default – resonates with previous commentary from other operators . “ This rebalancing of our CPA revenue share mix will secure a more sustainable revenue inflow but does create a negative short-term impact as the level of CPA payments are being removed while not reducing the costs associated iGB Affiliate Monitor