Catena Reports Decline in Q1 2023 Earnings Despite Strategic Investments

Catena, a digital lead acquisition firm, witnessed a reduction in both earnings and profitability throughout the initial quarter of 2023.

The organization’s income from ongoing business activities diminished by 5% compared to the previous year. This downturn was chiefly attributed to the difficult financial climate and heightened rivalry within the internet gaming sector. Catena’s earnings from continuing operations experienced a substantial decrease of 35% relative to the corresponding period last year. This decline can be ascribed to the company’s calculated choice to allocate resources towards long-term expansion strategies, such as venturing into fresh markets and conceiving novel offerings.

Catena’s comprehensive performance in the first quarter of 2023 was additionally influenced by the sale of specific brands, notably AskGamblers. Disregarding the discontinued operations, Catena’s revenue for the quarter totaled €35 million (roughly $37.9 million). When factoring in the discontinued operations, revenue reached €36.2 million, signifying a 20% year-on-year decrease.

In contrast to its rival, Better Collective, Catena produced considerably lower revenue in the first quarter of 2023. Nevertheless, Catena’s net profit, encompassing discontinued operations, exceeded that of Better Collective.

Catena Media’s Chief Executive, Michael Daly, recognized a minor decrease in the company’s annual revenue, ascribing it to the challenging task of replicating the exceptional debut of digital sports wagering in New York during the first quarter of 2022 and the Louisiana rollout in the corresponding timeframe.

He emphasized the favorable influence of Ohio’s internet sports betting introduction on January 1st, noting that Catena’s North American squad leveraged the Super Bowl fervor in February, resulting in one of their most prosperous launches to date, although not entirely equaling the revenue surge witnessed in New York.

Daly’s remarks follow a recent restructuring at Catena, with the firm designating a new temporary Chief Financial Officer after the exit of Peter Messners, disclosed in February.