Catena Media undergoes management changes and adopts a new operating model to boost results in the latter half of 2024 after experiencing a quarter of underperformance.
In Q1 2024, revenue from continuing operations amounted to €16.0 million (£13.7 million/US$17.2 million), marking a 49 percent decrease. Notably, revenue in North America saw a 50 percent decline, totaling €14.3 million. New depositing customers (NDCs) from continuing operations dropped by 41 percent to 44,077. Adjusted EBITDA from continuing operations decreased significantly by 90 percent to €1.9 million, with an adjusted EBITDA margin of 12 percent.
During the quarter, significant events included receiving consent from bondholders regarding a bond loan, resulting in a partial prepayment and an extension of the maturity date. Additionally, the company launched online sports betting affiliation in Vermont and North Carolina, targeting adult populations of 0.5 million and 8.5 million, respectively.
Following management changes, including the departure of CEO Michael Daly and the appointment of Manuel Stan as the new CEO effective from July 1, the company aims to revitalize its performance. Michael Gerrow was also appointed as CFO, effective April 15, 2024. These strategic moves signify Catena Media’s commitment to implementing changes to drive growth and improve financial results in the upcoming quarters.
Interim CEO Pierre Cadenas comments: “Catena Media is implementing a programme of organisational and leadership changes to confront continued poor performance through Q1 2024. This transition is essential as we continue to target organic revenue growth in the second half of this year.
“Operational outcomes during the period were again unsatisfactory, especially in North American sports. Stronger competition, tightened marketing spending by operators, and challenging comparables with Q1 2023 – when online sports betting went live in Ohio and Massachusetts – combined to push revenue and EBITDA lower.
“The legalisation of online sports betting in North Carolina on 11 March came after the Super Bowl but in time for the March Madness college basketball tournament, which provided positive uplift. Despite being in play for less than one third of the period, North Carolina was our strongest performing US state in Q1.”
