The company experienced a 20% decrease in revenue, dropping from €45.2m to €36.2m. This decline was anticipated and attributed to the successful US launches in 2022. CEO Michael Daly stated that the drop in revenue was due to the challenging comparatives resulting from the record-breaking launch of online sports betting in New York and Louisiana in the first quarter of 2022.
The highlight of the market quarter was the legalization of online sports betting in Ohio on January 1, 2023, which contributed to one of the company’s best-ever launches. However, it fell behind New York in terms of gross revenue.
Furthermore, Catena witnessed a decrease not only in total revenue for the period from 2022, but also in adjusted EBITDA from continuing operations, dropping by 7% from €22.1m to €20.5m. The number of new depositing customers (NDCs) also fell by 3%, with the North American arm of the business experiencing a 4% decline in NDCs.
Despite these declines, there were some areas of growth. Casino-based activity in North America increased by 8% year-on-year to reach €10.4m, and sports-based activity in the rest of the world markets grew by 5% to €3.2m. In terms of revenue composition, North America accounted for 83%, while the rest of the world markets contributed 17%.
Catena’s revenue model consists of 81% CPA, 16% revenue share, and 3% fixed agreements. The company noted a 5% decrease in revenue for casino-based activity across all markets but saw an 18% increase in adjusted EBITDA. Sport-based activities also experienced a 5% drop in revenue and a 19% decrease in adjusted EBITDA.
Direct costs rose to €4.1m due to increased media and influencer partnerships, primarily in North America. Personnel expenses decreased as a result of a 25% reduction in the European staff base in November 2022. Catena underwent a business review in 2022, leading to asset sales and a strategic focus on regulated markets in North America. The company remains open to strategic alternatives and structural options, including a potential share listing in the US.
