Catena Media, an industry affiliate marketing company, reported a declining performance across its core business units after reporting a 2.1 percent decrease in sales during full-year 2019 trade.
In releasing the year-end report for the period January–December 2019, Catena announced sales were down from € 105 million in 2018 to € 102.8 million in 2019. Catena also reported a decrease in search revenue of 1.8 percent year-on-year, from € 89.9 million to € 88.3 million.
A performance segment breakdown saw paid revenue drop by 15 percent, estimated at € 11.9 million, while subscription revenue fell to € 2.6 million by 57.7 percent.
Losses before tax for the year were registered at € 10.3 million, down from a profit of € 33.1 million in 2018. The losses came in after paying taxes of € 178,000. Losses for the year stood at € 10.5 million, marking a sharp decline from the estimated income of € 30.8 million during 2018.
Catena’s chief executive Per Hellberg said: “As the efforts we have put into our products now show a positive growth trend, we also saw challenges with some of our previously acquired assets not performing as planned.
“In our strategic review, operational efficiency programmes and evaluations of previously acquired products, we are writing down the value of certain assets acquired in the period 2016-2018, which simply can’t perform under today’s market conditions.
“Now, with only two earn-out commitment to be settled, and with a strong operating refinancing of the company; we will communicate further details as soon as we have information to give.”
Impairment expenses have impeded sales from Catena Media in 2019, with the affiliate’s giant reporting expense of intangible assets as € 32.1 m per year. This was due to acquisitions made between 2016 and 2018.
The impairment costs are said to be related to a € 17.9 m write-down related to intangible financial assets primarily focused on the European marketplace, according to the year-end report. It also includes casino properties purchased by Catena in 2016, priced at € 13.2 m, as well as sports betting assets worth € 900,000.
New depositing customers (NDCs) have made a hit during the year, with a total of 436,706 (539,475) numbers–a 19 percent decline compared to 2018. The EBITDA also dropped by 15 percent to € 40.5 million, down from € 47.8 million.