Catena Media CEO: Profitability improved, but revenue growth remains a challenge

Catena Media CEO Manuel Stan has acknowledged the company’s progress in improving profitability but also emphasised the ongoing challenges in achieving revenue growth.

“For the second consecutive quarter, profitability improved following the measures taken since mid-year to streamline the cost structure,” he stated, pointing out that these efforts reduced the cost base by 33 per cent from Q4 2023, lifting the adjusted EBITDA margin from five per cent in Q2 to 15 per cent in Q4.

Despite these gains, revenue remains under pressure, declining 30 per cent to €10.2 million in Q4, while full-year revenue fell 35 per cent to €49.6 million. The company’s performance was affected by flat results in its sports business and high volatility caused by Google algorithm updates, which significantly impacted casino-related organic search operations.

Mr Stan acknowledged that Catena Media had previously spread its resources too thinly across multiple initiatives, which diluted focus. “Management seeks to correct this by concentrating efforts on the group’s top-performing sites and products,” he explained. This shift aligns with the company’s broader goal of brand optimisation and improving customer engagement.

In a strategic move, Catena Media ended its AI-based content generation venture, incurring a €1.2 million non-cash impairment charge. However, the company recouped €0.7 million of its initial investment through an acquisition deal in January.

Operational improvements also included a 10 per cent workforce reduction, a three-day-per-week return to office policy for Malta-based employees, and the establishment of a US hub in Miami.

Catena Media also secured a new partnership with Daily Racing Form (DRF), which Mr Stan described as a valuable, aligned collaboration, in contrast to past media partnerships that lacked mutual incentives.

On the financial side, adjusted EBITDA for Q4 rose 2 per cent to €1.5 million, but for the full year, it saw a 79 per cent decline to €5.4 million. The casino segment remained resilient, with €7.6 million in Q4 revenue, while the sports segment dropped 54 per cent to €2.5 million.

Debt reduction remains a priority, and the company fully repaid its €10 million revolving credit facility, putting it in a position to repay its senior unsecured bond in June 2025 after receiving proceeds from the AskGamblers sale.

Looking ahead, Mr Stan remains cautiously optimistic. “While Q4 results continued to disappoint, we significantly improved our profitability through cost optimisation,” he said, adding that stabilised revenue in recent quarters provides a foundation for future growth.