Although reaching unprecedented achievements in the initial quarter, Catena Media witnessed a downturn in its Q2 2022 outcomes.
The affiliate marketing firm announced a 5% annual reduction in income for Q2, totaling €28.9 million (US$29.4 million) versus €30.4 million during the corresponding period the previous year.
Moreover, their profits before interest, taxes, depreciation, and amortization (EBITDA) plunged by a substantial 40% to €9.1 million for the three months concluding in June. This marks a significant decline compared to their exceptional Q1 performance, where they attained an 11% year-over-year revenue surge, reaching €45.2 million.
In aggregate, Catena’s revenue for the first half of 2022 still observed a 4% rise, amounting to €74.1 million for the initial six months. Nevertheless, EBITDA for the first half of the year diminished by 14%.
The Q2 slump might appear unexpected to many. Catena had ventured into the promising North American territories of Louisiana and New York in Q1, anticipating these new endeavors would continue to reinforce their Q2 figures.
Remarking on the underwhelming results, Catena Media CEO Michael Daly conveyed, “The second quarter demonstrated to be a demanding phase for Catena Media, with numerous obstacles ultimately resulting in a 5% year-on-year drop in group revenue…” He ascribed the decrease to a confluence of elements, encompassing a deteriorating global financial environment affecting trading operations in various markets and elevated expenses linked to new market entries and product enhancements.
In a predictable move, Catena’s share value saw an initial decrease of 3% following the publication of their Q2 financial results. A swift recovery followed. This volatility was likely connected to the current strategic assessment of one of Catena’s branches, a factor that potentially added complexity to forecasting the earnings announcement.