Catena Media plc ((SE:CTM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, Catena Media plc presented a mixed sentiment, highlighting significant revenue and earnings growth alongside operational efficiencies and a strategic focus on North America. Despite these positive developments, the company acknowledged challenges such as regulatory uncertainties, impairment losses, deferred interest payments, and a decline in sports revenue. The overall tone was one of cautious optimism, with an awareness of potential headwinds in upcoming quarters.
Revenue and Earnings Growth
Catena Media reported a notable increase in revenue for Q3 2025, amounting to EUR 11.6 million. This represents a 9% rise compared to Q3 2024 and a 22% increase from Q2 2025. When adjusted for the weaker U.S. dollar, the revenue grew by 15% from Q3 2024, showcasing the company’s resilience and growth potential.
Adjusted EBITDA Improvement
The company’s adjusted EBITDA saw significant improvement, reaching EUR 2.9 million, more than doubling from both the previous quarter and Q3 2024. The adjusted EBITDA margin also improved to 25%, up from 14% in the previous quarter and 13% in Q3 2024, indicating enhanced profitability.
Operational Efficiency
Catena Media’s cost optimization program resulted in a 6.9% year-on-year reduction in operating expenses. This reduction contributed to improved efficiency across all business areas, highlighting the company’s commitment to operational excellence.
Geographical Revenue Focus
North America emerged as a key focus area for Catena Media, contributing 96% of the group’s revenue. This strategic emphasis underscores the company’s dedication to expanding its presence and performance in this lucrative market.
Launch of Marketplace Platform
The introduction of the sub-affiliation platform, Marketplace, has shown strong results. This platform enhances service delivery and empowers affiliates and operators in North America, further solidifying Catena Media’s market position.
Regulatory Uncertainty and Market Challenges
Despite positive strides, Catena Media faces regulatory uncertainty, particularly concerning social sweepstakes casinos, and challenges from generative search trends. These factors present potential headwinds for future quarters.
Impairment Losses
During the quarter, Catena Media recorded a EUR 16.5 million impairment loss due to underperformance in legacy Rest of World casino assets and North American sports assets. This highlights the challenges faced in certain segments of their operations.
Deferred Interest Payments
The company has deferred interest payments on its hybrid capital security, with accumulated deferred interest totaling EUR 2.5 million. This decision was made to maintain cash flexibility amid current market conditions.
Sports Revenue Decline
Sports revenue experienced a decline of 28% compared to last year, amounting to EUR 1.8 million. The performance in this segment remains unsatisfactory, requiring more time and effort to improve.
Forward-Looking Guidance
Looking ahead, Catena Media remains focused on maintaining its robust performance, with a 9% year-on-year revenue increase and a 22% rise compared to Q2 2025. The company plans to continue enhancing operational efficiency and diversifying revenue streams, particularly through its Marketplace platform. However, they remain cautious about potential challenges from regulatory uncertainties and market trends.
In conclusion, Catena Media’s earnings call reflects a balance of optimism and caution. While the company has achieved significant growth and operational improvements, it remains vigilant about potential challenges in the regulatory landscape and market dynamics. Investors and stakeholders will be keenly watching how Catena Media navigates these challenges in the coming quarters.