Catena Media (CTM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue from continuing operations was EUR 12.8 million, down 14% year-over-year, with adjusted EBITDA at EUR 0.7 million, down 67%, both in line with guidance.

• Major organizational reset with a new executive team and a shift to a product-focused operating model, aiming for sharper focus and cost optimization.

• Strategic initiatives included the launch of a sub-affiliation platform (Mrktplays) and Spanish-language Bonus.com targeting new demographics.

• Q2 results were impacted by changes in Google search policies, affecting media partnerships and leading to cost restructuring.

Financial highlights

• North America revenue was EUR 11.2 million, down from EUR 12.5 million year-over-year; North American casino revenue grew 13% year-over-year.

• Rest of world revenue was EUR 1.6 million, down 33% year-over-year, but adjusted EBITDA rose 216% due to operational streamlining.

• Group cost base decreased by 5% year-over-year and 14% sequentially, with EUR 1.6 million in media partnership costs discontinued for Q3 onward.

• Net interest-bearing debt decreased by 46% to EUR 12.4 million; cash balance at period end was EUR 18.9 million.

• Q2 2024 adjusted EBITDA margin from continuing operations was 5% (14% in Q2 2023).

Outlook and guidance

• Management expects a lower cost base from Q3 2024 due to non-renewal of underperforming media partnerships, with EUR 1.6 million quarterly cost savings.

• Double-digit organic growth in both revenue and adjusted EBITDA targeted for 2025 and 2026.

• Focus on diversifying revenue streams, building brands, leveraging first-party data, AI, and strategic investments in social sweepstakes and North American casino products.