CATENA MEDIA Q2 REVIEW
AT A GLANCE
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CATENA MEDIA Q2 REVIEW
AT A GLANCE
• Revenue from continuing operations came in down 16 % at € 16.9m
• Adjusted EBITDA from continuing operations dropped by 60 % to € 2.6m
OFF A CLIFF
It is instructive to view the clear strategic challenges facing the once market leader through the lens of its financial performance over the last eight quarters . As can be seen , from the all-time highs in Q122 , all the key metrics have suffered major falls in the subsequent year and a quarter .
Revenue is down 62 % from Q122 to € 16.9m from € 45.2m and while this is largely down to the offloading of various parts of the business in the past year , it still represents a shocking decline .
Even within the terms of being a slimmed-down operation , focusing solely on the US , the sporting seasonality meant that the continuing operations still suffered a 16 % fall in revenue year-on-year .
The situation with EBITDA is even more stark . The € 2.6m for Q2 from continuing operations represents a year-on-year decline of 60 %. No wonder the earnings call began with Michael Daly suggesting Catena was suffering from an increasingly fierce competitive environment .
“ We saw an impact of stronger competition , particularly from competitors ’ more media partnerships , whereby they have more domain strength to challenge our top keyword position ,” he said . “ Added to this was the impact in changes to operator spend for marketing relating to some reduced sports rates and overall search volumes .”
Explaining away the drop in profits at an EBITDA level , Daly said the company was putting “ additional investment ” in the future “ to strengthen our position ”
October 2023