Catena Media faced ongoing financial difficulties in the second quarter of 2023, reporting a 16% reduction in revenue from continuing business activities compared to the same period last year. This trend of diminishing revenue has persisted since the second quarter of 2021, posing challenges for the company.
Including discontinued business lines, the company’s total revenue experienced a 37% year-over-year decrease, reaching €18.1 million (equivalent to roughly $19.7 million). Catena’s adjusted EBITDA, which factors in discontinued operations, also witnessed a significant drop of 70%, settling at €280,000. This figure represents a four-year low for the company’s adjusted EBITDA.
Operations in North America were particularly impacted, with revenue in the region declining by 16% to €12.5 million. The company attributed this downturn to a difficult market landscape.
At the close of the second quarter, Catena held a market capitalization of SEK 1.28 billion (approximately $124 million) and carried net debt of €21.3 million. The company’s financial results have fueled speculation regarding its potential as an acquisition target.
Catenas fiscal display over the initial four quarters reflects a trajectory akin to its income pattern, encompassing discontinued business segments.
During the second quarter of 2020, modified EBITDA, incorporating discontinued segments, reached €14.8 million, escalating to €14.9 million in the corresponding period of 2021. Nevertheless, by the second quarter of 2022, Catena declared a deficit of €9.1 million.
Echoing the income outcomes, Catena also presented adjusted EBITDA from ongoing operations of €2.6 million for the second quarter of 2023, a 60% reduction contrasted with €6.5 million in the same period of 2022.
Moreover, the earnings ascribed to parent company proprietors from continuing operations for the quarter witnessed a substantial decrease compared to the earnings of €43.2 million disclosed in the second quarter of 2022, with the second quarter of 2023 registering a figure of negative €2 million.
However, if discontinued operations for the quarter are factored into Catena’s performance, the entity has amassed a loss of €18.2 million.
The subsequent data portrays the profit/loss attributed to parent company proprietors from ongoing operations across the preceding four quarters (2020-2023), underscoring the instability of its latest performance.
Regarding the company’s second-quarter outcomes, Catena CEO Michael Daly stated: “The second quarter represented a phase of sustained advancement for Catena Media as we persist in our shift towards a cash-flow positive enterprise concentrated on regulated markets within North America.”
Moving forward, my primary focus is to sustain our expansion course and achieve our fiscal objectives: attaining positive unrestricted cash flow by the year’s end, reaching $125 million in yearly North American revenue by 2025, and surpassing a 50% modified EBITDA margin.
At the GI Huddle Conference in June, Dali presented his outlook for Cat’s future.
Cat also published its financial performance for the initial six months of 2023, indicating gross income of €5.06 million, a reduction from €5.59 million during the corresponding timeframe in 2022.
The corporation’s adjusted EBITDA for the first half of 2023 was €2.27 million, similarly declining from €2.84 million in the first half of 2022. In aggregate, Cat registered a profit for the first half of 2023 from ongoing operations (ascribed to holders of the parent company) of €1 million, a decrease from €1.68 million in the parallel period of 2022.
As of June 2023’s conclusion, Cat held a total debt of €6.1 million, cash and cash equivalents of €3.8 million, signifying a net debt position of €2.31 million.
Lastly, examining Cat’s share value thus far in the current year, it has experienced a somewhat turbulent journey, surging before retracing to its year-to-date bottom of SEK 16.41 ($1.50) at the present time.
The company’s stock attained its peak for the year on February 16th, reaching SEK 37.54. The company’s market capitalization stands at SEK 1.28 billion as of now.