Catena Media announced significant increase in revenue in North America
Catena Media presented its financial report for the fourth quarter of last year and the entire 2022. The Group boasts slight increases in several business areas.
Successful start in new markets
The second half of 2022 was a period of substantial changes for Catena Media. However, the group boasts good financial results that include, among other things, a 31 percent increase in revenue in North America in the fourth quarter. It was mainly driven by the launch of the sports betting market in Maryland.
Catena also boasts a 15 percent increase in revenue from its overall continuing operations. The perspectives for the coming months also look optimistic for the group, although it will be extremely difficult to match last year’s results, due to fewer new market openings.
In the fourth quarter, the group reported a slight increase in the number of new depositing customers (NDCs), which amounted to 84,651, up 1% from 83,539 in the fourth quarter of 2021.
Adjusted EBITDA from continuing operations increased 14 percent to €12.3 million (€10.8 million in the fourth quarter of 2021), corresponding to an adjusted EBITDA margin of 45 percent. It is unchanged from last year.
Earnings per share from continuing operations amounted to €0.04 (€0.06 in the fourth quarter of 2021), while funds and equivalents as of December 31 amounted to €24.6 million (€27.7 million in the fourth quarter of 2021).
Michael Daly, CEO of Catena Media said: “The final quarter of 2022 was strong for Catena Media as we recorded a 15 percent increase in revenue to EUR 27.4m, along with growth of 14 percent in adjusted EBITDA from continuing operations.
These figures reflected the further expansion of our core North American business, where revenue climbed 31 percent on the back of robust performance in Maryland, which legalised licensed online sports betting in November, a strong World Cup, and contributions from recently opened markets in New York, Louisiana, Ontario and Kansas. We also profited from a favourable run-up period prior to the launch of legal sports betting in Ohio on 1 January 2023.”
Time of substantial changes for Catena Media
Financial results for the entire 2022 remained relatively stable, with any changes dictated by Catena’s strategic decisions.
Revenues from continuing operations amounted to €110.1 million, up 7% year-on-year. Revenues in North America increased by 24% to €84.5 million, corresponding to 77% of group revenues, as expected. The organic growth was -4%.
The number of new depositing customers (NDCs) amounted to 354,050 (345,963 in 2021), a 2% year-on-year increase. Adjusted EBITDA from continuing operations decreased by 16% to €50.1 million, corresponding to an adjusted EBITDA margin of 46%.
Earnings per stock from continuing operations amounted to €0.35, while funds and equivalents as of December 31 amounted to a total of €24.6 million.
On December 15, the group agreed to sell its AskGamblers brand and related global casino brands for 45 million. The transaction, finalized on January 31, 2023, involved the sale of two wholly owned subsidiaries in Malta and Serbia.
In November 2022, the group also appeared on the newly regulated market in Maryland.
The first few months have also been marked by considerable changes at Catena Media. In January 2023, the group appointed Carnegie Investment Bank as a financial advisor to help evaluate the company’s strategic options following third-party interest in acquiring certain assets, while in February the company announced the departure of CFO Peter Messner.
