Revenue down at Catena Media in Q3

Revenue down at Catena Media in Q3

Affiliate giant Catena Media has reported a year-on-year drop in revenue in the third quarter, but did see its profit increase during the period.

Published 19th November 2019

Total revenue for the three months through to 30 September came in at €26.4m (£22.5m/$29.2m), down 5% from €27.7m in the corresponding period last year.

Search revenue, its main source of income, slipped from €23.7m on Q3 of 2018 to €23.1m this year, while paid revenue fell 22.2% from €3.6m to €2.8m, and subscription revenue 25.0% from €400,000 to €500,000.

Revenue from revenue sharing arrangements accounted for 42% of revenue in the period, while revenue from cost per acquisition comprised 43%, fixed fees 13% and subscription revenue 2%.

In terms of overall operating expenses, spending was up 12.7% from €16.6m to €18.7m. Personnel costs were the main outgoing, with this increasing 23.9% to €5.7m, primarily as a result of investment in the US market to support growth plans.

Profit before tax was up 47.1% from €8.7m to €12.8m, primarily due to higher gains on financial liability. This amounted to €6.8m, compared to €750,000 in Q3 of last year.

Profit after tax climbed from €8.1m to €11.9m, but earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 11% from €35.9m to €32.0m, while adjusted EBITDA excluding non-recurring costs also down 15% to €32.2m.

“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,” Catena’s chief executive Per Hellberg said.

“Major growth came from the United States, now representing 17% of our total revenues year to date. Strong performance from our core product AskGamblers and Japan also contributed positively to this quarter's development.

“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.”