The adjusted EBITDA margin plummeted to 15%, down from 32% in Q2 2022.
Moreover, new depositing customers (NDCs) slumped by 31% to 49,770.
North American revenue decreased to €12.5m, a slide of 16% compared to Q2 2022. US revenue now accounts for 74% of the group’s total revenue from continuing operations.
H1 2023 results
In H1 2023, revenue from continuing operations reached €50.6m, down 9% on H1 2022.
Revenue in North America decreased by 7% to €41.5m, equivalent to 82% of group revenue from continuing operations.
Adjusted EBITDA from continuing operations dropped by 20% to €22.7m, corresponding to an adjusted EBITDA margin of 45%.
Catena Media CEO Michael Daly emphasised the company’s transition towards a net cash positive business model, mainly targeting regulated markets in North America.
“Operational performance in Q2 reflected the backdrop of reduced marketing spend by betting operators in North America,” said Daly.
“This market-wide tightening temporarily dampened search volume and levels of new depositing customers, particularly in sports,” he said.
“I expect our EBITDA margins to be far stronger in Q3, and especially in Q4, when sports betting activity will be higher,” he said.
However, Daly admitted that stiff competition from non-traditional affiliates and the entry of established media organisations into online sports betting had a negative impact on Catena Media revenue.
Post Q2 measures
Post-Q2, Catena Media announced significant strategic shifts, including a new share buyback programme.
Further to this, the business inked a deal to sell its UK and Australia operations for €6m in early August.
This move is projected to bring down the group’s annual expenses by around €2.8m.
Subsequent to the divestment, the group has also initiated a programme aimed at cutting costs by between €3.8m to €4.2m.
Despite the weak Q2 and H1 results, CEO Daly is optimistic that Catena Media can achieve its financial objectives for the 2023 to 2025 period.
In May, Catena revealed its goal to attain a net cash positive state by year-end and achieve a 2025 annual North American revenue of $125m, along with an adjusted EBITDA margin surpassing 50%.
To reach these targets, Daly emphasised that Catena Media would strengthen its core search positions, expand its North American paid media presence, establish strategic media partnerships and capitalise on new state launches and favourable regulations to drive revenue growth, all while maintaining cost control.
The company also intends to leverage its strong financial position for activities such as share buybacks, dividends, and potential acquisitions in the Americas.
