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Catena Media Plc reports progress in transitioning its business to a new operating model, prioritising US growth, media rankings, partnerships, and projects.
The Stockholm-listed iGaming media group has published its interim H1 2024 accounts, providing the first insights into a new leadership team led by Manu Stan (CEO) and Michael Gerrow (CFO).
H1 accounts show corporate revenues standing at €29m, reflecting a 38% decrease compared to 2023 figures of €46m, as H1 adjusted EBITDA tracks at €2.5m (H1 2023: €20m).
Leadership detailed that the deficit in headline revenues was in line with corporate expectations, as Catena’s financial performance continues to adapt to the strategic reorganisation of its media network, primarily to operate US assets.
Prior to publishing H1 results, Catena had warned investors of Google search policy and content changes in Q2 impacting its performance, as Q2 revenue guidance was revised down to €12.5m—a target that was met by Catena.
Google’s impact prompted Catena to revise its US media partnerships, leading to the decision “not to renew some of these agreements” with a view to reducing the cost base by €1.6m from Q3 onwards.
A reorganised media network sees Catena generate €25.5m in revenues from US activities in H1, equivalent to 89% of group income from continued operations.
However, in its breakdown of business segments, the accounts highlight clear disparities between the firm’s sportsbook and casino performance.
Sportsbook KPIs reveal that Catena has halved new depositing customers (NDCs) to 33,000 during H1 trading.
Noting restructuring effects and the “continued underperformance of some key brands,” Catena registered a 63% decline in sportsbook revenues to €8.9m, with the unit tracking adjusted EBITDA losses of €5m (H1 2023: €8.3m).
However, a modified casino unit performed well for Catena, matching 2023 NDC comparatives of 42,000.
Catena cites iGaming growth within all regulated US states except New Jersey, as the casino unit generates H1 revenues of €19.8m, combined with an adjusted EBITDA contribution of €7.7m (H1 2023: €12m).
Group accounts detailed that interim operating expenses, including items affecting comparability, totalled €31m. H1 trading saw Catena book direct costs of €8.1m, primarily related to media partnership costs and staff costs associated with North American business.
As of 30 June, Catena’s cash equivalents stood at €19m; however, the firm’s cash position will be increased by an inflow of €22m, generated from the sale of Euro assets—AskGamblers (€15m) and Italian assets (€7m).
Catena provides no corporate guidance, as leadership assumes that the previous full-year adjusted EBITDA forecast of €20m is no longer applicable.
Providing his first statement as Group CEO, Manu Stan said: “Catena Media has a strong portfolio of outstanding products and a highly motivated team of experts in their fields. In my opinion, the group has previously tried to do too many things and spread its resources too thinly, resulting in under-optimisation of core products. The new board and management agree on the need for a laser-sharp operating focus.”
“We are now in a stronger position to concentrate on the core products and drive revenue. To that end, we have completed an extensive prioritisation exercise and, as a first step, we are clearing many low-performing domains to allow our teams to focus on the top products. I am excited by the challenges ahead and optimistic about the future as we maximise our products’ potential, particularly in the casino segment, where we see strong opportunities for growth. I believe Catena Media is well-positioned to become a leading partner for the iGaming industry in North America.”
