Catena Media Reports Underperformance Amid Management Changes

The performance-based online marketing company that caters to the iGaming and betting sectors, Catena Media, released its latest financial report Tuesday. The company disclosed its interim report covering the period between January and March 2024, revealing unsatisfactory results, pointing to year-over-year decreases in a number of operating segments.

Per Catena’s new report, revenue from continuing operations marked a decrease of nearly 50% year-over-year. In total, revenue from continuing operations in Q1 this year halted at €16 million ($17.2 million). This result, compared to the €31.5 million ($33.9 million) reported for the corresponding period in 2023, showed a decrease of 49%.

Not unexpectedly, adjusted EBITDA from continuing operations decreased as well. For the first quarter of this year, Catena posted €1.9 million ($2 million) in adjusted EBITDA from continuing operations, a result that was 90% below the figure posted a year earlier.

Further details within the interim report reveal that the company’s North American revenue took a hit. In total, Catena’s revenue in North America decreased by 50% to €14.3 million ($15.4 million). In contrast, for the same period in 2023, the revenue was €28.9 million ($31.1 million).

Results amid Restructuring Were Unsatisfactory

Earlier this year, the company announced a number of changes to its senior-level team, including new board appointments. The changes saw Catena’s CEO, Michael Daly, step down from his role late in February. Upon confirming the C-suite change, the company also announced that Pierre Cadena was assigned to the role of interim CEO while the search for a permanent holder of the role was initiated.

“Operational outcomes during the period were again unsatisfactory, especially in North American sports. Stronger competition, tightened marketing spending by operators, and challenging comparables with Q1 2023 – when online sports betting went live in Ohio and Massachusetts – combined to push revenue and EBITDA lower.“

Pierre Cadena, interim CEO at Catena Media

In a commentary released together with the latest financial update, Cadena spoke about the ongoing leadership organizational change undertaken by Catena. He explained that this strategic change is expected to address the poor performance observed throughout Q1 2024.

Additionally, Cadena spoke about the importance of the restructuring, saying that upon completion it is expected to help the company achieve organic revenue growth within the second half of 2024. Still, Cadena acknowledged that the latest results were unsatisfactory, outlining a number of factors that negatively impacted the company’s performance in North America in particular.

After the latest trading period, Catena announced another C-suite appointment. Early in April, the company named Michael Gerrow as its new CFO. In his new role, Gerrow will leverage his extensive experience in online gaming and marketing, accumulated through years of hard work.