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.