Catena Media CEO Manuel Stan said that while profitability continues to improve for the igaming affiliate, this must be matched by top-line growth.
The company cut 29 jobs in October ahead of its Q3 report, which Stan said was “challenging.”
But he insisted then that Catena Media has a “strong base” to work from – and that message continued in Q4 despite those challenges rearing their heads again.
Q4 revenue fell 30 per cent to €10.2m and revenue in North America, accounting for 87 per cent of operations, fell 28 per cent to €8.9m.
New depositing customers dropped 19 per cent to 25,806.
However, adjusted EBITDA increased two per cent to €1.5m and EBITDA from continuing operations rose 62 per cent to €0.8m.
Full-year revenue for 2024 fell 35 per cent to €49.6m from €76.7m in 2023 while adjusted EBITDA for the year declined 79 per cent to €5.4m.
“The Q4 results reflected the ongoing challenges we face in our core markets,” Stan said. “For the second consecutive quarter, profitability improved following the measures taken since mid-year to streamline the cost structure.
“These actions reduced the cost base by 33 per cent from Q4 2023, lifting our adjusted EBITDA margin from five per cent in Q2 to 15 per cent in Q4. This represents a significant improvement, but reaching higher profitability will also require a return to top-line growth.
“In Q4, revenue remained under pressure as measures to focus the group on the new strategic priorities set by management gained traction more slowly than anticipated.
“A six per cent decline in revenue compared to Q3 reflected flat performance in our sports business and the impact of two Google algorithm updates in Q4 that created high volatility levels in our casino-facing organic search operations, with rankings experiencing large day-to-day swings.”
Stan added that while the introduction of objectives and key results metrics in Q4 may seem a “basic step,” he said that Catena Media “has in the past spread its resources too thinly across multiple initiatives, diverting attention from core products.”
“Management seeks to correct this by concentrating efforts on the group’s top-performing sites and products. Further brand optimisation plans are in preparation as we focus hard on how best to serve our customers.”
Stan also pointed to the partnership with Daily Racing Form, announced in December 2024, as an exciting step forward.
