The digital gaming partnership network, Catena Media, experienced a decline in earnings for the initial two quarters of 2023. Their second-quarter income reached €23.7 million, reflecting a 9% reduction compared to the corresponding timeframe in the preceding year. This brings their cumulative revenue for the first six months to €49.8 million, marking a minor decrease from the prior year.
Profitability also faced a setback. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter contracted by 22% to €9.4 million. This reduction was linked to a substantial decline in newly acquired depositing clients, which plummeted by 29% during the quarter. Over the first half of the year, adjusted EBITDA contracted by 8% to €22.5 million, accompanied by an 18% drop in new customer acquisition.
Despite these hurdles, Catena Media found a positive aspect in their cash flow. Cash generated from operational activities actually surged by 20% in the second quarter, reaching €10.5 million. This upward trajectory contributed to a 3% boost in their cash flow for the first six months, totaling €19.5 million.
Chief Executive Officer Per Hellberg maintains a hopeful outlook. He emphasized the company’s ongoing initiatives to modernize their online platforms, enhance their operational framework, and position themselves for expansion into emerging markets. Catena Media has been actively engaged in acquisitions recently and remains dedicated to amplifying its footprint within the United States market.
Nevertheless, the market responded with apprehension to the announcements. Catena Media’s stock value plunged by approximately 18% during early trading hours following the disclosure of their financial performance.
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