Catena Media share price down double digits on missed Q2 targets
The Malta-based affiliate firm cites the UK’s new KYC measures as a key reason for 9% revenue decrease
Catena Media’s share price fell more than 18% in early trading after the affiliate firm reported a Q2 revenue dip of 9% to €23.7m.
EBITDA for the second quarter dropped by 22% to €9.5m, while New Depositing Customers (NDCs) decreased by 29% to 99,981, down from 140,154 in the same period last year.
The Malta-headquartered firm said poor performance was due to regulatory upheaval in the UK and France, as well as a weak sports betting environment and higher than usual casino pay-outs.
In the UK, it was the UK Gambling Commission’s new KYC measures that led to the drop-off in revenues. Catena’s Q2 report read: “Due to a rather time-consuming and complicated KYC registration process, many players gave up before completing this step.
“This resulted in delayed deposits and gaming activities, and thus fewer NDCs and delayed revenues.”
To combat falling revenues, the affiliate firm pledged to find new revenue streams in mature markets, including a new method where Catena Media will be paid to retain an operator’s existing customers, instead of acquiring new ones.
Catena Media CEO Per Hellberg said the firm will focus on rebuilding its sites; improving its business model and expanding into new markets in Q3.
Hellberg spoke to EGR Marketing in July about cutting down on acquisitions after missing recent revenue targets.