In the digital realm of online gaming, Catena Media, a prominent affiliate, witnessed a 41% plunge in their revenue, landing at €14.5 million in 2023’s last quarter. 🎮📊
This downturn in Q4 led to a yearly revenue decrease of 22%, totaling €76.7 million. Significantly, the North American market experienced a 21% revenue dip, contributing to this downturn. 🌎💸
In response, Catena is boldly embracing Artificial Intelligence (AI) and a cutting-edge centralized tech platform to rejuvenate their affiliate ventures. 🤖📈
CEO Michael Daly comments, “The media landscape is evolving fast, thanks to AI and tech advances. In the online betting and casino world, these changes are monumental. We’re on a mission at Catena Media to be pioneers in this evolving scene.” 🌟💡
“We’ve kicked off a comprehensive investment strategy, focusing heavily on tech and AI, to rapidly achieve our goal of becoming the data and tech frontrunner in online sports betting and casino affiliate marketing,” Daly adds. 🚀📱
He further explains, “Our Q4 results were underwhelming, and I’m not satisfied. We initiated these investments early in 2023 and have since ramped them up. Our aim? To set ourselves up for a bright future and return to sustainable growth. We’re eyeing a comeback with organic growth in the second half of 2024 and projecting an adjusted EBITDA of €20-30 million for the full year.” 🎯📊
The quarter saw a 43% drop in new depositing customers (NDCs), with a year-long decrease of 19%, totaling 184,257. 📉👥
Q4 EBITDA from ongoing operations was just €0.5 million, a stark contrast to the previous year’s €12.3 million, marking a significant drop in profitability. 💰❗️
The year concluded with a total EBITDA of €23.6 million, down from €46.8 million, reflecting a shift in EBITDA margin from 47% to 31%. 📉🔍
The quarter’s results include a €34 million impairment charge on European intangible assets, following a strategic review. 🧐📚
Daly shares, “We’re launching a revolutionary tech platform in Q1, marking Catena Media’s first unified tech infrastructure for affiliate activities. This is a game-changer, boosting our technical strength and simplifying new vertical deployments.” 🌍🛠️
He acknowledges, “We expect some challenges in reporting until our investments take off later this year. Q4 faced market headwinds, revenue, and EBITDA declines in our key North American market. Factors like lower CPA rates and intense competition impacted us. However, we’re actively responding to maintain our market share.” 🌬️🛡️
Daly concludes, “Transformations like ours require time and patience. Q4 was tough, but we’re turning a corner. Our vision is a streamlined, agile Catena Media, ready to excel in regulated markets and return to growth later this year.” 🔄💪
As of Tuesday morning, Catena Media plc. (STO:CTM) shares fell 13.05% to SEK8.20 each in Stockholm. 📉📈
