The governance of Stockholm-listed Catena Media AB has continued to back the firm’s strategic progress and diversification strategy to overcome declines within the UK and Nordics.
Competing against tough Q3 2018 metrics and a ‘slowdown in organic growth’ within its marketing verticals, Catena records a 5% decline in Q3 2019 corporate revenues €26.4 million (€27.7m) – with year-to-date revenues tracking at €76 million (YTD2019).
During the trading period, Catena recorded increased operating expenses of €18.7million (€16.6m), undertaking product improvements and operational adjustments for its UK and Nordic market presence.
“Numerous actions and tasks have been undertaken, but to adapt to the changing environment, we are continuously working on these tasks to increase our performance,” said the company.
Catena governance continues to increase US expenditure by accelerating the firm’s position within regulated states. It has launched initial marketing services in Indiana and Pennsylvania.
Increased expenditure combined with operational adjustments sees Catena post a 15% decline in Q3 2019 EBITDA to €11.4 million (13.4m), as YTD EBITDA tracks at €32 million (€35m).
“After three consecutive quarters of decline, I am happy to announce a trend shift in third-quarter revenues, which increased by +11% compared to the second quarter, making it the third-best quarter in the history of the company,” said Per Hellberg Chief Executive of Catena Media. “Major growth came from the United States, now representing 17% of our total revenues year to date.”
Moving forward, Catena governance underlines that it will continue to focus on improving its marketing efficiencies and new market expansions, seeking to overturn a decline in new depositing customers and operating margin impacts (41% from 45%).
“Strong performance from our core product AskGamblers and Japan also contributed positively to this quarter’s development,” added Hellberg. “The European Casino segment, which has been in decline since the third quarter last year, levelled out this quarter and several products started to show positive growth in traffic and revenues.”