Catena Media with poor financial results in Q1 2024
Catena Media faces significant challenges following disappointing financial results for Q1 2024. In response to declining revenues and escalating market challenges, the company is changing its leadership and sales model.
Q1 Financial Overview: A Steep Decline
The first quarter of 2024 proved challenging for Catena Media, with the company witnessing a 50% decrease in corporate revenues from continued operations, totaling €16 million, down from €31.5 million in the same period last year. This significant downturn has largely been attributed to the performance of its North American media unit, which saw revenues halve to €14 million, representing 90% of the group’s revenue from ongoing operations.
Interim CEO Pierre Cadena expressed dissatisfaction with the period’s results, particularly with North American sports, noting, “Operational outcomes during the period were again unsatisfactory, especially in North American sports. Stronger competition, tightened marketing spending by operators, and challenging comparatives with Q1 2023 have posed substantial hurdles.”
Strategic Shifts and Leadership Changes
In an effort to address these challenges, Catena has transitioned from a geography-based model to a product-focused strategy. This shift aims to enhance the accountability of the commercial performance of individual assets within Catena’s media network. The company is also setting up “product squads” to tackle issues as they arise, ensuring a more agile and responsive approach to market dynamics.
The leadership team at Catena is also undergoing significant changes, with Manu Stan set to take over as CEO and Michael Gerrow stepping in as CFO. These appointments are part of a broader strategy to revitalize growth and improve corporate efficiencies, particularly in the North American market.
Financial Strain and Operational Adjustments
The company’s sports network reported a 68% decline in revenue to €6.1 million, with an EBITDA loss of €1.9 million. The casino network didn’t fare much better, with a 20% revenue drop to €9.9 million and a halved EBITDA contribution of €3.7 million. Overall, adjusted EBITDA from continued operations plummeted by 90% to €1.9 million, with the trading margin collapsing to 12%.
Total operating expenses for the period were reported at €16.4 million. As of March 31st, Catena’s cash and cash equivalents stood at €23.4 million, significantly lower than the €52 million recorded at the same point last year.
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