Catena, an internet gaming firm, experienced a challenging initial quarter in 2023, witnessing a decline in both earnings and income.
The company’s income from ongoing business activities, excluding the influence of divested ventures like AskGamblers, contracted by 5% in comparison to the corresponding period the previous year. Profits for these core operations were impacted even more severely, plunging by 35%.
In aggregate, Catena’s revenue for the quarter amounted to €36.2 million, representing a 20% year-on-year decrease. This figure encompasses revenue generated from both continuing and discontinued operations. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also experienced a downturn. EBITDA from continuing operations shrank by 7% to €20.5 million, while total EBITDA, incorporating discontinued operations, plummeted by 24% to €19.4 million.
Despite these hurdles, Catena’s net income presents a different narrative. While net income from ongoing business activities witnessed a substantial reduction of 35%, reaching €11.6 million, the overall net income, which accounts for discontinued operations, actually surged by 10% to €22.9 million.
The company’s financial results stand in juxtaposition to its competitor, Better Collective. Although Catena’s revenue is less than 50% of Better Collective’s, Catena’s net income, when factoring in discontinued operations, exceeds that of its rival. Nevertheless, Catena’s EBITDA is considerably lower than Better Collective’s, trailing behind by 41%.
Catena Media’s Chief Executive, Michael Daly, recognized a minor decrease in revenue compared to the previous year, linking it to the challenging contrast with the prior year’s robust results. The introduction of internet sports wagering in New York during the first quarter of 2022, coupled with Louisiana’s rollout in the same timeframe, established a high standard.
Nevertheless, Daly emphasized the triumphant January 1st debut of sports gambling in Ohio as a significant victory. He commended the North American squad for leveraging the pre-Super Bowl timeframe, resulting in one of their most prosperous launches to date, although he observed that it didn’t quite attain the revenue peaks of New York’s introduction.
Separately, Catena recently designated a new temporary Chief Financial Officer following the exit of Peter Messners in February 2023.
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