Catena Media reports 5% Q3 revenue decrease
Affiliate’s share price falls by 12% in early trading despite strong performance in Japan and US
Catena Media’s share price dropped by 12% this morning after the affiliate firm reported a Q3 revenue decrease of 5% to €26.4m
Third quarter adjusted EBITDA fell by 15% to €11.5m, while New Depositing Customers (NDCs) totalled 99,435, marking a 28% drop-off from the same period last year.
Revenues did climb by 11% compared with Q2 and CEO Per Hellberg said he was happy with the positive trend shift – a result of strong growth in the US and Japan.
Catena Media CEO Per Hellberg
“Major growth came from the United States, now representing 17% of our total revenues year to date,” said Hellberg.
“Strong performance from our core product AskGamblers and Japan also contributed positively to this quarter’s development.
“The European Casino segment, which has been in decline since the third quarter last year, levelled out this quarter and several products started to show positive growth in traffic and revenues.”
Catena Media reported that 62% of Q3 revenue came from casino, while 33% came from sports betting and 5% from its financial services portfolio.
The European casino market remains problematic for Catena Media, particularly in the UK and Sweden, with no quarter-on-quarter upturn expected aside from seasonality.
The affiliate also highlighted its shift to CPA revenues over revenue share. CPA accounted for 43% of total revenue, while 42% came from rev share, compared to 47% in the second quarter.
Hellberg added: “I’m confident that the efforts we have taken are pointing us towards a bright future, but first we need to close this year.
“With the current momentum and the product improvements we have made, together with the market expansion, it looks promising for the fourth quarter.”