Catena Media pushes back EBITDA target after Q1 struggles
Malta-based affiliate firm experiences a 7% decrease in NDCs after feeling the pinch in Sweden’s new-look market
Catena Media has missed its Q1 revenue target after reporting a 9% increase in first quarter revenues to €26.1m for the period ending March 2019.
EBITDA for the period rose by 8% to €11.2m, up from €10.4m in the same period last year, to mark a corresponding EBITDA margin of 43%.
Net cash generated from operating activities fell to €9.1m from €10.3m, while new depositing customers (NDC) decreased by 7% to 124,007.
The affiliate firm cited troubles in Sweden’s re-regulated market as the driving factor behind the poor performance, as revenue has fallen for many operators in the market since January.
Catena Media CEO Per Hellberg
Catena Media CEO Per Hellberg said: “It was difficult to foresee the impact this would have in Sweden, especially on coveted high-spenders.
“Revenue of many operators dropped dramatically but for the long term, we expect this will prove beneficial for us. Since operators will need even more players, there should be even higher demand for our services.
“Additionally, with Swedish legislators considering restricting marketing channels for online gambling, our offering will grow even stronger,” he added.
Hellberg also pledged to continue Catena Media’s long-term transformation which is “based on the strategies of organic growth” and on fewer but larger brands for increased cost control.
Catena Media’s missed Q1 targets could see another financial target missed, or at least delayed. The firm has pushed back its growth and earnings target of reaching adjusted EBITDA of €100m in 2020.
This has now been revised to 2021, due to “external factors” in the industry affecting the company.
Other significant events during the quarter included the appointment of Deloitte partner Erik Edeen as CFO, while Catena’s NewCasinos brand launched in Germany after the reporting period in April.
Optimizer Invest no longer holds any shares or voting rights in Catena Media, although Optimizer co-founder and former Catena CEO Henrik Persson Ekdahl personally bought 75,000 shares last week.