Catena Media continues to face “ongoing commercial challenges in core markets”, as leadership initiates cost base actions to reduce expenditure and improve earnings efficiencies.
Global performance stagnates in Q4
Operating revenue for the period October-December 2024 came in at €10.2m, reflecting a 30% decrease on Q4 2023 comparatives of €14.5m.
Quarterly revenue stagnation also affected Catena’s presence in its primary market of North America, as income declined by 28% to €8.9m (Q4 2023: €12.3m). North America held a bigger share from Catena’s total group revenue (87%) compared to the previous corresponding period (85%).
A breakdown of Q4 activities saw Casino revenue in North America down 12% YoY to €6.9m (Q4 2023: €7.8m). Further declines saw North American Sports revenue tumble to €2m compared to the €4.4m in Q4 2023.
Period trading saw Catena report declines across all territories as the Rest of World (RoW) segment made up 13% of the total quarterly revenue. International October-December results were down 41% YoY to €1.3m (Q4 2023: €2.1m).
RoW Casino revenue dropped by 39% to €734k (Q4 2023: €1.2m), while Q4 RoW Sports revenue declined by 45% to €536k (pcp: €968k).
The decline in Q4 headline revenues is offset by Catena’s improved adjusted EBITDA from continuing operations, rising 2% to €1.5 million (Q4 2023: €1.478 million). This reflects an adjusted EBITDA margin of 15%, a notable increase from the 10% margin recorded in the same period last year (October-December).
Manuel Stan, Catena Media CEO, commented: “The Q4 results reflected the ongoing challenges we face in our core markets…In Q4, revenue remained under pressure as measures to focus the group on the new strategic priorities set by management gained traction more slowly than anticipated.”
Further positives saw EBITDA from continuing operations increased by 62% to €800k in Q4 (pcp: €500k), equivalent to an EBITDA margin of 7% (Q4 2023: 3%).
Additionally, the company reported organic growth challenges in Q4 caused by Google’s recent SEO algorithm updates, which saw Catena’s ranking score drop to 5.35 on 29 December compared to the 4.05 achieved in September.
New leadership chases break-even results
Manuel Stan became Catena CEO in March last year after ex-boss Michael Daly parted ways with the Nasdaq Stockholm affiliate and media publisher earlier in February, following continuous attempts to lead the company out of a fluctuating financial performance.
Stan took leadership of the company’s reorganisation initiatives to cut costs and drive organic growth through a new operating model, inheriting a series of “underperforming” financial quarters.
The fallout of this is evidenced in Catena’s full year results, with full-year EBITDA from continuous operations down 101% to €261k, compared to €23.6m in 2023.
Cost cuts seek to correct full-year woes
Headwinds saw full-year revenue dropping down by 35% to €49.6m (2023: €76.7m). Total North America revenue dropped to €44m (2023: €67m), with Casino down 7% (2023: €35m) and Sports dropping to €11.5m – suffering a 64% YoY decline (2023: €32m).
Rest of World revenue was down 41%, bringing in €5.7m (2023: €9.7m), with global Casino and Sports suffering similar fates to their NA counterparts – down 47% and 30% respectively.
Adjusted EBITDA for the full year was down 79% to €5.4m (2023: €25.4m), with a margin of 11% (2023: 33%).
As mentioned previously, Catena’s full-year EBITDA from continuing operations suffered significantly with its 101% drop, representing a margin of -1% (2023: 31%).
Cost cutting measures implemented by management in 2024 saw a 39% lower cost base by the end of the year, dropping from €14.2m in Q1 to €8.6m in Q4. Several media partnerships were discontinued to reflect Catena’s sustainable growth targets.
Streamlining of product and marketing staff resulted in annual cost savings of €2.2m. Direct costs at the end of the year were down 18% to €11m (2023: €13.4m).
Stan concluded: “Catena Media enters 2025 as a more focused organisation. While Q4 results continued to disappoint, we significantly improved our profitability through cost optimization.
“Our underlying revenue has stabilised in recent quarters, providing a foundation from which we can build. With a leaner organisation, a stronger balance sheet and a clear strategic roadmap, I remain confident in our future direction.
“I want to thank our team for their tireless work and all our stakeholders for their continued support.”
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