Catena Media disappointingly ended 2023 and another underwhelming quarter for the group appears in its 2024 quarter 1 results. The affiliate will implement management changes and a new operating model. This is to see whether there is an uplift of results in the second half of 2024.
Review from on-going operations was €16 million or $17.2 million. It represents a significant decrease of 49% year-on-year. This went down by 50% to €14.3 million looking exactly at North American revenue. It was equal to 90% of the group revenue from continuing operations during the quarter.
Looking at individual segments, the largest fall revenue of Catena Media was sports revenue in North America, down 70% to €5.5 million. For the rest of the world, the sports revenue decreased just 1% to €607,000. Although, casino revenue for the rest of the globe was down 46% to just under €1.1 million. In North America, casino revenue dropped 15% to €8.8 million.
From continuing operations, adjusted EBITDA also saw a large drop-off. It declined 90% to €1.9 million. This led to an adjusted EBITDA margin of 12%. In the first quarter of 2023, adjusted EBITDA margin was 59%.
The new NDCs or new depositing customers may have impacted the group from continuing operations taking a large dip, of 41% specifically, to a total of 44,077.
Catena’s share price was 6.90 SEK. This is a 20.5% decrease from the closing price from the previous week.
Moving forward, Catena is looking to invest to develop a new range of technical and data-based capabilities, specifically artificial intelligence or AI. This is while it believes cost optimization measures will ensure continued high profitability.
The group believes organic growth will resume in the second half of this year. The affiliate also believes its financial position will allow for focused debt reduction and strategic investments. It is transitioning from a CPA-dominated revenue model to a higher mix of revenue share.
