- COMPANY RESULTS
Catena Media announced that it soft-launched a sub-affiliation platform, Mrktplays, during Q2, as its revenue and other financial performances continued to drop.
The platform, known as Mrktplays, has been brought in to help the affiliate reach its goal of building a leading marketplace for the industry. New CEO, Manuel Stan said that the network will “bring value and expertise by offering a platform that provides a dynamic ecosystem where affiliates and operators can connect and drive growth”.
Further decreases
Revenue at Catena during April to June decreased by 14 percent year-on-year with the figures dropping from €14.9m (£12.78m/$16.42m) to €12.8m. Whereas, North American revenue fell by 11% to €11.2m and made up around 88% of the group’s revenue in the three months.
This however marks an improvement on the affiliate’s Q1 results where it suffered a 50.5% collapse in its North American revenue where it was responsible for 90% of total group revenue.
Adjusted EBITDA was also down, this time dropping 67% year-on-year for Q2 and 88% lower for the year so far on 2023’s results.
The affiliate also converted 17% fewer new depositing customers with a total of 31,475 from 2023’s 37,935 in the same three-month period. Back in June, Catena lowered its financial estimates blaming the organic search policy updates by Google earlier in the year.
Personnel in place
This period also saw several senior personnel enter the business, including Edward Midolo as CTO, Michael Gerrow as CFO and Manuel Stan as CEO.
In his statement, Stan went on to add that his top priority is embedding the company’s new operating model and optimising products. “I see high energy levels as we start this new chapter,” said Stan.
“Since 1 April, four out of five members of the executive management team are new in their roles. By year-end the makeover will be complete with the appointment of a new general counsel.”
He also confirmed Catena’s strategy of increasing casino activities, as the affiliate saw it as a “strong opportunity for growth”.
Sweepstake strategy
In North America, casino revenue increased by 13% from 2023 to €9.1m in Q2, as global revenue was up by 3%. While NDCs increased by 5% in the same period for casino activities, they remained down for the year to date compared to 2023.
The revenue increase in North America reflected Catena’s core brand enhancement strategy during the first half of 2024. Additionally, social sweepstakes accounted for over one-third of casino revenue in the quarter.
Sports activity revenue was down 47% year-on-year to €2.8m as Catena blamed the annual seasonality for the drop with the quarter being the slowest for sports events. The result was also compounded by the continued underperformance of some of its key brands. It also saw a similar 46% decrease in NDCs in sports activities.
Stan ended his statement with the belief that “Catena Media is well positioned to become a leading partner for the igaming industry in North America” as it continues to maximise product potential.