In the second quarter of 2024, Catena Media reported a notable decline in its financial performance. The company’s revenue for Q2 amounted to €12.8 million ($14.1 million), representing a 14% decrease year-on-year. Adjusted EBITDA for the same period plummeted by 67%, falling to €0.7 million from €2.1 million in the previous year. Despite these challenges, the company’s overall loss showed significant improvement compared to the previous year, narrowing from $18.2 million in Q2 2023 to $2.7 million in Q2 2024.

Catena Media Reports Q2 2024 Financial Results

Geographic Breakdown: North America

Revenue and Performance in North America

In North America, Catena Media’s revenue for Q2 was €11.2 million, a decline of 11% compared to the previous year. The drop in revenue was mirrored by a reduction in new depositing customers (NDCs), which fell by 11% to 29,824. Adjusted EBITDA for the North American segment also decreased, although less severely, down 24% to €4 million.

Revenue Distribution by Vertical:

• Casino: The casino segment in North America generated €9.1 million, marking a 13% increase year-on-year. This segment was a rare area of growth for Catena Media this quarter.
• Sports: The sports segment, however, experienced a significant decline, with revenue falling by 53% to €2.1 million.

Geographic Breakdown: Rest of the World

Revenue and Performance in Other Markets

For the remaining markets outside North America, Catena Media reported €1.6 million in revenue, which represents a 33% decline year-on-year. NDCs in these regions fell dramatically by 62% to 1,651. Despite this drop, adjusted EBITDA for the segment increased significantly, rising to €0.8 million from €0.3 million the previous year.

Revenue Distribution by Vertical:

• Casino: The casino segment faced a 44% decrease in revenue, down to €0.9 million.
• Sports: The sports segment saw a smaller decline of 6%, with revenue totaling €0.6 million.

Vertical Performance Analysis

Sports Segment

The sports segment accounted for €2.8 million, which is 29% of Catena Media’s total revenue. This represents a substantial decline of 47% overall, largely driven by the 53% drop in the US market. The number of NDCs in this segment decreased by 46% to 9,011. Adjusted EBITDA for the sports segment saw an increase in loss, rising from €2.7 million to €3.2 million.

Casino Segment

In contrast, the casino segment showed resilience with a 3% increase in revenue to €10 million. The number of NDCs dropped only slightly by 3% to 22,464. However, adjusted EBITDA for the casino segment decreased by 18%, amounting to €3.9 million.

Strategic Restructuring and Leadership Changes

Leadership Appointments

To address the financial challenges and implement a turnaround strategy, Catena Media has made significant changes to its leadership team:

• Edward Midolo was appointed as CTO on April 1.
• Michael Gerrow took on the role of CFO starting April 15.
• Manuel Stan was appointed as CEO, with his role commencing in Q3 2024.

CEO Manuel Stan emphasized the importance of these changes, noting that a majority of the management team would be new by the end of the year. He highlighted the commitment and motivation of the new team to overcome the challenges and drive the company towards improved performance.

Impact of Search Engine Policy Changes

Catena Media’s Q2 results were impacted by recent changes in search engine policies that affected some media partnerships. Despite the immediate negative effects, the company observed a positive impact on its owned and operated products later in the quarter. Stan expressed optimism about leveraging these products’ potential, especially in the casino segment, to drive future growth.

Outlook and Future Prospects

Looking ahead, Catena Media remains focused on leveraging its new leadership team to steer the company towards recovery and growth. The company’s strategy involves capitalizing on the opportunities in the casino segment and optimizing its product offerings to enhance market positioning, particularly in North America.

Conclusion: The Results

Catena Media’s financial results for Q2 2024 reflect a period of significant challenges, yet the company’s strategic initiatives and leadership changes provide a foundation for potential future success. As the company continues to adapt and evolve, it remains committed to improving its financial performance and expanding its market presence.

FAQs About Catena Media’s Q2 2024 Financial Results

1. What were Catena Media’s total revenues for Q2 2024?

Catena Media reported total revenues of €12.8 million ($14.1 million) for the second quarter of 2024, marking a 14% decline compared to the same period last year.

2. How did Catena Media’s adjusted EBITDA perform in Q2 2024?

The adjusted EBITDA for Q2 2024 was €0.7 million, which represents a sharp decline of 67% from the €2.1 million reported in Q2 2023.

3. What was Catena Media’s loss before tax in Q2 2024?

The loss before tax for Q2 2024 was $2.5 million, compared to $2.8 million in the same quarter of the previous year.

4. How did the overall loss from the period compare to the previous year?

The overall loss decreased significantly from $18.2 million in Q2 2023 to $2.7 million in Q2 2024.

5. What were the revenue and performance metrics for Catena Media in North America?

In North America, Catena Media reported €11.2 million in revenue, down 11% year-on-year. The number of new depositing customers (NDCs) dropped by 11% to 29,824. The adjusted EBITDA for this segment fell by 24% to €4 million.

6. How did Catena Media’s North American casino and sports segments perform?

• Casino Segment: Revenue increased by 13% to €9.1 million.
• Sports Segment: Revenue decreased by 53% to €2.1 million.

7. What were the results for Catena Media in other global markets?

Catena Media’s revenue from the rest of the world was €1.6 million, a 33% decline year-on-year. Despite a significant drop in NDCs (62% to 1,651), adjusted EBITDA improved to €0.8 million.

8. How did the casino and sports segments perform globally outside North America?

• Casino Segment: Revenue decreased by 44% to €0.9 million.
• Sports Segment: Revenue fell by 6% to €0.6 million.

9. What changes were made to Catena Media’s leadership team?

Catena Media appointed several new executives:

• Edward Midolo as CTO (effective April 1).
• Michael Gerrow as CFO (effective April 15).
• Manuel Stan as CEO (effective Q3 2024).

10. How have recent changes in search engine policies affected Catena Media?

Recent changes in search engine policies negatively impacted some of Catena Media’s media partnerships. However, the company observed a positive impact on its owned and operated products later in the quarter.

11. What are Catena Media’s future strategies?

Catena Media aims to leverage its new leadership team to drive recovery and growth, focusing on optimizing its product offerings and capitalizing on opportunities in the casino segment, particularly in North America.

12. What is the company’s outlook for the future?

The company remains committed to improving its financial performance and expanding its market presence, with a focus on turning around its results through strategic initiatives and new leadership.