Catena Media (CTM) Q4 2024 earnings summary

Executive summary

• Achieved highest adjusted EBITDA margin since Q3 2023, with two consecutive quarters of improved profitability, despite a 30% year-over-year revenue decline to EUR 10.2m in Q4 2024; North America accounted for 87% of group revenue.

• Profitability gains driven by a 33% reduction in the cost base, cost streamlining, and headcount reduction, though full-year revenue fell 35% to EUR 49.6m and net loss from continuing operations was EUR 47.9m.

• Implemented a new product-focused operating model and OKR system to drive alignment and accountability.

• Discontinued AI content generation joint venture, recovering EUR 0.7m of the original investment.

• Exclusive partnership signed with Daily Racing Form to enhance sports betting content and promotions.

Financial highlights

• Q4 2024 revenue from continuing operations: EUR 10.2m, down 30% year-over-year; North America revenue: EUR 8.9m, down 28% year-over-year.

• Adjusted EBITDA: EUR 1.5m in Q4 (+2% YoY), margin at 15% (up from 10% YoY and 5% in Q2 2024); full-year adjusted EBITDA: EUR 5.4m (-79% YoY), margin 11%.

• North America contributed 87% of group revenue; casino revenue down 12% YoY to EUR 6.9m.

• Adjusted cost base decreased by 33% year-over-year and 7% sequentially.

• Cash and cash equivalents at year-end: EUR 8.5m; net interest-bearing debt: EUR 12.9m.

Outlook and guidance

• Management targets double-digit organic growth in both revenue and adjusted EBITDA for 2025 and 2026.

• New North American market launches expected in Missouri (H2 2025) and Alberta (2025, date TBD).

• Ongoing focus on stabilizing revenue, leveraging cost reductions, and optimizing core products for sustainable growth.

• Proceeds from asset sales to be used to repay the senior bond due June 2025, reducing interest costs.

• Net interest-bearing debt to adjusted EBITDA ratio targeted at 0-1.75.