The digital gaming partnership firm, Catena Media, encountered a challenging initial six months, with both earnings and income experiencing a decline.
Revenue for the second quarter decreased by 9% in comparison to the corresponding period last year, reaching €23.7 million (approximately $26.3 million). This reduction brought down the overall revenue for the first half of the year by 0.4% to €49.8 million.
Profits also witnessed a decrease. EBITDA (earnings before interest, taxes, depreciation, and amortization) for the second quarter fell sharply by 22% to €9.4 million, leading to an 8% reduction for the first half of the year, settling at €22.5 million. The firm attributes this downturn in part to a substantial decline in new depositing clients – a 29% decrease in the second quarter and an 18% decrease for the initial six months of the year.
Despite these obstacles, there are some positive signs for Catena. The company’s cash flow generated from operating activities actually rose by 20% in the second quarter, hitting €10.5 million, and experienced a 3% increase for the first half of the year, reaching €19.5 million. Moreover, earnings per share, while down for the first half of the year, actually showed an increase in the second quarter.
Catena’s Chief Executive Officer, Per Hellberg, maintains an optimistic outlook, emphasizing the company’s ongoing initiatives to restructure and enhance its operations for future expansion, including venturing into new markets. Catena has been particularly dedicated to expanding its footprint in the United States, a market with significant potential for internet-based gambling.
However, investors appear to be adopting a cautious “wait-and-see” stance. Following the publication of the financial report, Catena’s share price experienced a decline, dropping by approximately 18%. It remains to be determined whether the company’s strategic actions will yield positive results and restore investor confidence in the upcoming months.
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