Catena Media plc today announces preliminary financial results and a non-cash impairment for the third quarter of 2024.
Preliminary figures for Q3 indicate that revenue will be between EUR 10.5-11.0m (15.9m). Total adjusted EBITDA is expected to be in the range of EUR 1.0-1.5m (3.2m), corresponding to a margin of 10-14 percent (20).
A non-cash impairment charge of EUR 40.0m has been recognised in accordance with IAS 36. The charge relates to the writedown in the book value of specific sports betting assets following the implementation of a new product operating model in recent months.
The transition to the new model includes a strategic decision to focus product development efforts on a cluster of core brands. As a result, the book value of certain non-core products has been determined to have decreased. The impairment charge also takes account of changes in book value estimates that have arisen due to the group's underperformance in sports betting in recent quarters.
Catena Media CEO Manuel Stan commented: "It is important that our balance sheet reflects current realities. In sports betting, we have been operating at a loss for an extended period. We have responded to market challenges by shifting resources away from loss-making products and into those that we believe have the best potential to generate long-term value. I believe that this strategy will position us for success in the coming quarters.
"In Q3 I was also pleased to see an improvement in the cost base following the non-renewal of certain media partnerships and the optimisation of other agreements. This reduced top-line revenue but positively impacted adjusted EBITDA. We are keenly aware that the market is looking for signs of a return to revenue growth. Although the figures reported today do not yet show that improvement, we see positive signals from the changes we have made in recent months such as a leaner cost base and improved search rankings, and we remain on course to achieve our objective."
All financial figures presented in this press release are preliminary and unaudited. Final numbers will be published with the interim report for the third quarter on 7 November 2024.
Contact details for further information:
Investor Relations
Email: ir@catenamedia.com
Manuel Stan, CEO
Email: manuel.stan@catenamedia.com
Michael Gerrow, CFO
Email: michael.gerrow@catenamedia.com
This information is information that Catena Media plc is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication by the contact persons above on 22 October 2024 at 18:05 CEST.
About Catena Media
Catena Media is a leader in generating high-value leads for operators of online casino and sports betting platforms. The group's large portfolio of brands guides users to customer websites and enriches the experience of players worldwide. Headquartered in Malta, the group employs over 200 people globally. The share (CTM) is listed on Nasdaq Stockholm Mid Cap. For further information see catenamedia.com.
