Catena Media has reported a decrease in revenue for the period from October to December 2024, with total revenue from continuing operations falling by 30% to €10.2 million, compared to €14.5 million in the same quarter of the previous year. Revenue from North America accounted for 87% of group revenue from continuing operations, reaching €8.9 million, which is a 28% decrease from €12.3 million.
The company experienced a 19% decline in new depositing customers (NDCs), from 32,032 in Q4 2023 to 25,806 in the same period in 2024. However, adjusted EBITDA from continuing operations increased by 2% to €1.5 million, resulting in an improved adjusted EBITDA margin of 15%, up from 10% in Q4 2023. The company’s overall EBITDA increased by 62% to €0.8 million, corresponding to an EBITDA margin of 7%, up from 3% in the previous year.
Despite the improved margins, earnings per share from continuing operations totaled €-0.02, compared to €-0.47 in Q4 2023, reflecting the impact of the overall decline in revenue. The company’s cash and cash equivalents stood at €8.5 million at the end of December 2024, a significant decrease from €38.5 million at the same time in 2023.
The operating profit was impacted by a non-cash impairment charge of €1.2 million related to the company’s AI joint venture. Following this charge, the company made the decision to discontinue its AI-based content generation platform and reached an agreement to acquire 100% of the business in January 2025, which will allow for the recoupment of €0.7 million of the original investment.
For the full year 2024, Catena Media reported a 35% decrease in revenue from continuing operations, totaling €49.6 million, down from €76.7 million in 2023. North American revenue was €43.9 million, reflecting a 35% decline. The company’s NDCs also saw a 30% decrease, totaling 128,700 compared to 184,257 in 2023. Adjusted EBITDA for the year fell by 79% to €5.4 million, resulting in a decrease in the adjusted EBITDA margin to 11%, down from 33% in the previous year. Overall EBITDA was negative, totaling €-0.3 million, compared to €23.6 million in 2023, representing an EBITDA margin of -1%.
The company also announced a significant non-cash impairment charge of €40.0 million in October 2024, in line with IAS 36. This charge was related to the writedown of specific sports and casino assets following the company’s transition to a product-led operating model.
In terms of corporate governance, Catena Media appointed Stephen Taylor-Matthews as a non-executive director in November 2024 and Martin Zetterlund in December 2024. Additionally, in December, the company initiated a public tender process for the appointment of independent external auditors for the financial year ending December 31, 2025.
CEO Manuel Stan comments: “The Q4 results reflected the ongoing challenges we face in our core markets. For the second consecutive quarter, profitability improved following the measures taken since mid-year to streamline the cost structure. These actions reduced the cost base by 33 percent from Q4 2023, lifting our adjusted EBITDA margin from 5 percent in Q2 to 15 percent in Q4. This represents a significant improvement, but reaching higher profitability will also require a return to top-line growth. 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.
“A 6 percent decline in revenue compared to Q3 reflected flat performance in our sports business and the impact of two Google algorithm updates in Q4 that created high volatility levels in our casino-facing organic search operations, with rankings experiencing large day-to-day swings.
“It is clear that our initiatives in search engine optimisation (SEO), product development and geographic expansion will take additional time to translate into revenue gains. While this is unsatisfactory in the short term, I believe we now have the right focus areas and organisational structure in place to create a sustainable business with solid long-term growth prospects.”
