Catena Media (CTM) Q3 2024 earnings summary

Executive summary

• Finalized a new, flatter organizational structure in 2024, including a reduction of 29 employees and refreshed executive management, with new CEO, COO, and Chief Legal & Compliance Officer appointed.

• Continued international expansion with Bonus.com launches in Mexico and Brazil, and further development of the Spanish version, evolving it into a global brand.

• Strategic shift to reduce reliance on new state launches, focusing on organic growth, CRM, and diversification of revenue streams.

• New depositing customers declined 32% year-over-year to 27,342 in Q3.

• Non-cash impairment charge of EUR 40 million recognized in October, mainly related to sports and casino assets.

Financial highlights

• Q3 2024 revenue from continuing operations was EUR 10.7 million, down 33% year-over-year; North America contributed 89% of group revenue, with North American revenue at EUR 9.5 million, down 29%.

• Adjusted EBITDA was EUR 1.3 million, down 58% year-over-year, but margin improved sequentially from 5% to 13%.

• EBITDA turned negative at EUR -1.4 million due to a one-off contract termination cost.

• Rest of world revenue was EUR 1.2 million, down 53% year-over-year, with regulatory uncertainty in Japan impacting results.

• EPS from continuing operations was EUR -0.55 before dilution.

Outlook and guidance

• Management targets double-digit organic growth in both revenue and adjusted EBITDA for 2025 and 2026, supported by new market entries and organic initiatives.

• Focus remains on cost efficiency, debt reduction, and core product growth, with further annual cost savings of EUR 2.2 million from November 2024.

• Net interest-bearing debt to adjusted EBITDA ratio target set at 0–1.75.