Catena Reports 33% Revenue Decline in Q3 2024

07.11.2024

Catena Media experienced a notable revenue decrease in the third quarter of 2024, primarily impacted by underperformance in online sports betting and structural adjustments within its business model.

Key Revenue Figures and Decline Drivers

Catena’s Q3 revenue fell by 33% to €10.7 million, down from €15.9 million in the same quarter of 2023. This decline reflects not only weaker returns from online sports betting but also the end of certain media partnerships and modifications to existing affiliate agreements.

In North America, Catena’s revenue dropped by 29% to €9.5 million, which accounted for 89% of the group’s total income. Despite these numbers, the company reported increased revenue from North American casino operations over the previous quarter and growth in organic search rankings, signaling some positive developments within its portfolio.

EBITDA Trends and Strategic Adjustments

Catena’s EBITDA saw a notable improvement from July to September, with EBITDA margins increasing from 1% in July to 18% in September. Adjusted EBITDA, which accounts for one-time events, doubled from the previous quarter but still reflects a 58% year-over-year decrease, totaling €1.3 million in Q3 2024 compared to €3.2 million in Q3 2023. The company’s reported EBITDA, however, was -€1.4 million due to a €2.2 million cost incurred from terminating a content production agreement—a move expected to yield long-term savings of approximately €1.4 million.

To further address profitability, Catena implemented cost-cutting measures by restructuring its content production and marketing divisions, resulting in a reduction of 29 employees. These layoffs are projected to save the company approximately €2.2 million annually, effective November 2024.