Trying to turn the corner

Catena Media recently suffered what some might describe as organisational turbulence, with the announcement of challenging Q4 and FY23 results immediately followed by the resignation of former CEO Michael Daly. A week later, Manuel Stan was appointed as the new CEO – bringing 20 years of industry experience with him. Kindred Group veteran Stan, who is scheduled to begin his new role in July, said he was “delighted to have the opportunity to drive Catena Media forward.”
Catena’s Q4 results showed a 41% revenue decrease year-on-year. For FY23, revenue from continued operations fell 22%. Daly stated that there may be more challenging financial results to come through the first half of 2024 until new investments gain traction. However, he will not be the man to lead Catena into the future, as he has since resigned following years of work to stabilise the company's balance sheet.
New CEO Stan inherits not only a range of financial challenges, but also major regulatory responsibility. This is because as of November last year, Catena was one of six founding members of the Responsible Gambling Affiliate Association (RGAA). The purpose of the group is to cultivate discourse and action among affiliates regarding protecting consumer’s best interests and implementing constructive regulation.
If this wasn’t enough, other founding members of the RGAA include Better Collective, Oddschecker Global and XLMedia among others. Far from small names in the affiliate market.
So, how is Catena going to turn the corner? Firstly, it has released updated long-term financial targets for 2024-2026 – and as previously mentioned, has invested in new ventures. Much of this investment has been centred around North America, with a major rollout happening in Q4 2023 in Ontario, New York, Maryland and Kansas. This was alongside a complete exit from the Italian market. It also marks the completion of its previous strategic review, which began in May 2022 and resulted in the sale of €76m ($82.2m) worth of assets.
Catena Media invested in a number of projects over the course of 2023. Q4 alone saw both the buyback of over 2.5 million of its own shares, alongside the launch of an online sports betting affiliation in Maine. In January, Catena also launched another sports betting affiliation in Vermont.
However, North American revenue was down 21% in FY23 and 43% in Q4 – despite representing 87% of Catena’s total revenue. Nonetheless, Catena has seemingly adopted the 'keep calm and carry on' approach. March has seen it gear up for another stateside launch in newly regulated North Carolina.
Prior to his resignation, Daly spoke of “large investments in both tech and AI,” indicating that AI-driven content production from Catena could be around the corner. As of 25 March, Catena also proposed the reduction of its Board members from seven to six among a general reshuffle which saw Erik Flinck proposed as Chairman and Dan Castillo added as a new Board member. Michael Garrow has also been appointed Group CFO.
Overall, it’s becoming hard to predict where the vision lies for Catena. It is very much up to Stan to tell us. A large-scale rollout of investment in the States seems to be the strategy, despite declining revenue in the market in both Q4 and FY23. Whether it is AI or America, stakeholders will hope recent investments spell a positive change – especially with Q1 results around the corner. Where will Catena go from here?