Key points:
- Revenue down 33%, driven by underperformance in online sports betting
- Adjusted EBITDA was down to €1.3m
- Nine-month period reflects a difficult year for the company
Catena Media has released its third-quarter results, as well as its results for the period covering January to September, highlighting a challenging 2024.
Q3 2024
For Q3, Catena Media recorded revenue of €10.7m ($11.5m), representing a decrease of 33% year-on-year, with revenue in North America down 29% to €9.5m and revenue in rest of world down 53% to €1.2m.
It was the sports segment that saw the largest drop off in revenue, by 57% to €2.5m, while in the casino segment, revenue decreased 19% to €8.2m.
Adjusted EBITDA saw a decline of 58% to €1.3m, with adjusted EBITDA margin valued at 13% compared with 20% during the third quarter of 2023.
While in North America adjusted EBITDA decreased 24% to €4.4m, in rest of world it actually increased 36% to €698,000. Sport segment adjusted EBITDA was lower during this year’s Q3 by 16% to – €1.3m, while casino segment adjusted EBITDA was also down in the same period by 44% to €2.7m.
On top of this, new depositing customers from continuing operations was totalled at 27,342, which is down from 40,104 new depositing customers in the same period last year.
Nine-month period 2024
Looking at the nine-month period between January and September this year, revenue decreased 37% to €39.5m, while adjusted EBITDA decreased 84% to €3.9m.
There were 102,894 new depositing customers during the period compared to 152,225 new depositing customers in the same period last year.
Good to know: Manuel Stan was appointed Catena Media CEO in March of this year, taking up the position on 1 July
Comments
Catena Media CEO Manuel Stan provided some comments on the results: “From a top-line perspective, Q3 was a challenging quarter in which we saw revenue decline by 33 percent, driven by continued underperformance in online sports betting. Lower revenue also reflected the ending of certain media partnerships and changes made to other partner agreements.
“The flipside was that these cost-side measures lifted the adjusted EBITDA margin from 1 percent in July to 18% in September and double adjusted EBITDA quarter-over-quarter. Alongside this bottom-line improvement, we also saw a like-for-like increase in North American Casino revenue and incremental gains in our key organic search rankings, despite higher-than-usual volatility due to Google’s core updates.
“In summary, while Q3 did not deliver the revenue growth we are striving for, I am pleased with our progress in improving margins and optimising the business. The steps we have taken to reduce costs, reset agreements and focus on core products give us a solid platform to build on. As we head into Q4, we remain focused on executing our strategy and returning to profitable growth.”
In other results-based news today, Bally’s Corporation has announced its third-quarter results for the year, with net loss valued at $247.9m and showing a small 0.4% decrease in revenue.
