Catena Media’s Revenue Dropped to €49.6M in 2024

Catena Media's Revenue Dropped to €49.6M in 2024

Financial Performance in 2024

Catena Media released its annual report for 2024, recording a significant decline in revenue and profit. Key figures:

  • Revenue: €49.6M (a 35% decrease compared to €76.7M in 2023).
  • Margin: 11% (compared to 33% in 2023).
  • Adjusted EBITDA: €5.4M (a 79% decrease).
  • Operating Cash Flow: €2.9M (an 85% decrease).
  • Net Loss: €0.3M (compared to a €23.6M profit in 2023).
  • New Depositing Customers (NDC): 128.7K (a 30% decrease).

Performance in North America

North America remains the company’s key market, accounting for 88% of total revenue (€43.9M). However, the region also saw a decline:

  • Casino Segment: €32.4M (a 7% decrease).
  • Sports Betting Segment: €11.5M (a 64% decrease).

Reasons for Revenue Decline

  • Lack of New Launches in the U.S.: This limited opportunities to attract new customers.
  • Decline in Operator Activity and CPA Rates: Operators reduced marketing budgets, impacting Catena Media’s revenue.
  • Google Algorithm Update in May: This reduced the visibility of the company’s websites in search results, leading to the termination of several partnerships.

Cost Optimization Measures

  • Expense Reduction: Total costs decreased by 33% from Q4 2023 and by 7% from Q3 2024, improving the adjusted EBITDA margin from 5% in Q2 to 15% in Q4.
  • Workforce Reduction: Employee headcount was cut by more than 10% in Q4, leading to restructuring costs of €0.7M.

Financial Position

Net Debt: Decreased by 30% to €12.9M compared to €18.4M a year earlier.
Loan Repayment: The remaining balance of €10M on the revolving credit facility was repaid in Q4.
Proceeds from Asset Sales: Funds from the sale of AskGamblers were used to repay a senior unsecured bond maturing in June 2025, reducing future interest expenses.

Strategic Initiatives for 2025

Initiative Description
Expansion of Bonus.com Expanding presence in the Mexican and Brazilian markets.
Launch of Mrktplays Platform Creating a platform for sub-affiliates to expand the partner network.
Optimization of Internal Processes Improving operational efficiency to enhance profitability.

Market Reaction

The report’s release had no significant impact on Catena Media’s stock price. As of publication, shares were trading at $0.25 per share.