Catena Media posts 33% revenue drop and negative EBITDA in Q3
Catena Media, a leading name in the affiliate business, reported a dip in its third-quarter revenue. The company registered a revenue of 10.7 million, down from 15.9 million from a year ago. This marks a trend of revenue decline which the company aims to combat with strategic restructuring and further operational cuts.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) from continuing operations during the said quarter dropped to -1.4 million?as against 2.9 million during the year-ago period. During the July-September quarter, revenue in North America, which constitutes 89 percent?of the groups revenues from continuing operations, fell 29 percent to?9.5 million.
The group is facing headwinds in the online sports betting sector, which saw New Depositing Customers (NDCs) plunge by 32 percent year-over-year.
Structural changes
Chief Executive Officer Manuel Stan has announced internal restructuring to help offset the trend. He said this would help the company have a flatter organisational model which will be better positioned to support core product goals and content creation. This includes laying off 29 employees, projected to yield 2.2 million in annual savings starting in November.
“Q3 was a challenging quarter. Lower revenue also reflected the ending of certain media partnerships and changes made to other partner agreements,” Stan said.
“We have adapted the organisation to these realities, and in Q3 continued to take actions to return to profit by adjusting the cost base.”
In addition to the restructuring, Catena also announced a non-cash impairment charge of 40 million on some sports and 바카라 assets. This reflects a revaluation to move toward a product-led strategy. The company was in talks for and has secured an early release from certain long-term capitalised contracts. This settlement is projected to save 1.4 million in the future but has negatively impacted Q3 EBITDA.
“The steps we have taken to reduce costs, reset agreements, and focus on core products give us a solid platform to build on,” Stan said. The company intends to use its long-term savings to settle some debts and for further growth. Stan reiterated that continued adjustments to a tougher market are needed to get back profitability.
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