Catena Media Faces Revenue Decline but Shows EBITDA Improvement Amid Strategic Overhaul
Catena Media's latest interim report reveals a mixed performance with revenue decline but improved EBITDA margins, reflecting strategic adjustments.
Sammanfattning
Catena Media reported a 33% revenue decline in Q3 2024 due to underperformance in online sports betting and changes in media partnerships. However, cost-cutting measures improved EBITDA margins. The company is focusing on restructuring and strategic priorities to ensure future growth.
The latest interim report from Catena Media for the period January to September 2024 highlights significant challenges and strategic shifts. The company experienced a 33% decline in revenue during Q3 2024, primarily due to underperformance in online sports betting and changes in media partnerships. Despite this, the company managed to double its adjusted EBITDA quarter-over-quarter, attributed to cost reductions and a focus on core products.
| KPI | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | EUR 10.5-11.0m | EUR 15.9m |
| Adjusted EBITDA | EUR 1.0-1.5m | EUR 3.2m |
| EBITDA Margin | 10-14% | 20% |
| Net Income | - | - |
| Earnings per Share | - | - |
| Debt Ratio | - | - |
| Interest Coverage Ratio | - | - |
The company has taken several strategic steps to address its challenges. It has streamlined its content production and marketing teams, leading to a reduction of 29 positions and an annual cost saving of EUR 2.2m. Furthermore, Catena Media has restructured its executive management team, with all five members being new in their roles as of January 2025.
Despite the revenue decline, Catena Media has maintained stable casino revenue in North America, with slight growth when excluding prior quarter adjustments. The company is also expanding its presence in the Hispanic market with the launch of Spanish-language versions of its Bonus.com platform.
In conclusion, while Catena Media is facing revenue challenges, the improvement in EBITDA margins and strategic restructuring indicate a potential for future profitability. Investors should closely monitor the company's ability to execute its strategy and return to revenue growth.
Källa
Sammanfattning
Catena Media's interim report for January to September 2024 highlights a challenging Q3 with a 33% decline in revenue, mainly due to underperformance in online sports betting and changes in media partnerships. Despite this, cost-saving measures improved the adjusted EBITDA margin significantly. The company restructured its organizational setup, leading to a leaner team and annual cost savings of EUR 2.2 million. A new executive management team was completed with Liv Biesemans joining as Chief Legal & Compliance Officer. An impairment charge was announced to adjust the balance sheet, reflecting a decrease in the value of the Lineups product. North American casino revenue remained stable, with strategic expansions in Spanish and Portuguese-speaking markets. However, sports betting continued to underperform, with efforts ongoing to address these issues. The company remains focused on improving margins and returning to profitable growth. CEO Manuel Stan and CFO Michael Gerrow will present the Q3 2024 report on 7 November 2024. Catena Media generates leads for online casino and sports betting operators and is listed on Nasdaq Stockholm Mid Cap.