Catena Media, a key player in the iGaming industry, has reported a significant 41 percent year-on-year revenue drop in Q4 2023. Despite this, CEO Michael Daly remains optimistic about the company’s future.
Transition towards sustainable revenue model
In Q4 2023, Catena Media’s revenue fell to €14.5 million, a 41 percent decrease compared to the previous year. The North American market, which accounts for 85 percent of the group’s revenue from continuing operations, saw a 43 percent decrease to €12.3 million. The adjusted EBITDA from continuing operations also fell by 88 percent to €1.5 million, resulting in an adjusted EBITDA margin of 10 percent, a significant drop from 48 percent in Q4 2022.
The number of new depositing customers (NDC) from continuing operations was 32,032, a 43 percent year-on-year decrease. For the full year 2023, the company reported a 22% decrease in revenue from continuing operations, amounting to €76.7m. The North American market accounted for 87 percent of the group’s revenue from continuing operations, with a 21 percent decrease to €67.1m. The NDCs saw a 19 percent annual decrease, totalling 184,257. The adjusted EBITDA from continuing operations decreased by 47 percent to €25.4 million, corresponding to an adjusted EBITDA margin of 33 percent, down from 49 percent in 2022.
CEO comments
Despite these disappointing results, CEO Michael Daly, (pictured above), believes that the company is transitioning to a more sustainable revenue model. He attributed the revenue and EBITDA declines in Q4 to market headwinds, lower cost-per-acquisition (CPA) rates paid by operators, and increased competition. However, he highlighted that Catena Media is shifting operator deals from CPA to revenue share, which will bring greater stability and sustainability to revenue inflow over time.
Tech investments and organizational changes
Daly also pointed out the company’s wide-ranging internal investment program, including significant investments in tech and AI. These investments, initiated in 2023, aim to position Catena Media for the future and restore the group to a sustainable long-term growth trajectory. A new technical platform, set to launch in Q1, is the cornerstone of this transformation. Once fully rolled out in Q2, it will be the first time Catena Media focuses affiliation activities on a single, coherent tech infrastructure.
In Q4 2023, Catena Media established a joint venture with a specialist AI partner to develop a generative AI application dedicated to content production for online betting and casino gaming affiliation. This project has already delivered a minimum viable product (MVP) that has been introduced to the business. The focus now is on refining and adapting the MVP for multiple brands.
The completion of the strategic review and associated divestments has enabled the firm to undertake these investments. The strategic review has narrowed the company’s geographic spread and streamlined the organization. Catena Media is now transitioning into a multichannel business that operates across various channels.
Stop Press: the next SiGMA Eurasia Summit takes place in Dubai between 25 – 27 February!
The next SiGMA Africa Summit takes place in Cape Town between 11-13 March !
With less than a month until the highly anticipated SiGMA Africa event kicks off in Cape Town, South Africa on the 11th of March, the gaming industry is abuzz with excitement. Building on the success of its inaugural edition in Nairobi, Kenya, in January 2023, SiGMA Africa is strategically positioning itself at the forefront of Africa’s burgeoning gaming landscape. With the continent’s market poised for exponential growth, driven by a rapidly evolving digital ecosystem and increasing mobile connectivity, SiGMA Group recognizes the need to foster collaboration and innovation within the industry. By bringing together leading stakeholders and visionaries in gaming, SiGMA aims to catalyse progress and propel Africa towards a new era of prosperity and opportunity. As the countdown to the event begins, anticipation mounts for what promises to be a landmark gathering of gaming enthusiasts and innovators in the vibrant city of Cape Town.
The fourth edition of?SiGMA Eurasia?will once again be held at the InterContinental Dubai Festival City. Held between the 25 and 27 February 2024, the summit provides invaluable opportunities for attendees to network with industry professionals, gain exposure to the latest tech and innovations in the sector, meet key decision makers, and gain insight into new markets.??
