January-
- Revenue from continuing operations was
EUR 16.0m (31.5), a decrease of 49 percent. -
Revenue in
North America decreased 50 percent toEUR 14.3m (28.9), equivalent to 90 percent (92) of group revenue from continuing operations. - New depositing customers (NDCs) from continuing operations totalled 44,077 (74,186), a decrease of 41 percent.
-
Adjusted EBITDA from continuing operations decreased 90 percent to
EUR 1.9m (18.7), corresponding to an adjusted EBITDA margin of 12 percent (59). -
EBITDA from continuing operations, including items affecting comparability of
EUR 1.0m (0.8), totalledEUR 0.9m (17.9), corresponding to an EBITDA margin of 6 percent (57). -
Earnings per share from continuing operations totalled
EUR -0.03 (0.15) before dilution andEUR -0.03 (0.11) after dilution. -
Cash and cash equivalents were
EUR 23.4m (52.4) on 31 March. - Outstanding shares totalled 78,773,422 and outstanding warrants were 27,022,940 on 31 March.
Significant events during Q1 2024
- On 10 January the group received consent from bondholders regarding the written procedure for its outstanding bond loan 2021/2024 and a partial prepayment of half of the nominal amount of the bond was made. As a result, the total outstanding nominal amount of the bond is
EUR 27.5m (55.0m), of whichCatena Media holdsEUR 6.15m (12.3). The maturity date was extended to9 June 2025 . -
The group launched online sports betting affiliation in
Vermont , with an adult population of 0.5m, on 11 January. -
On 26 February the group announced the departure of CEO
Michael Daly . VP Corporate StrategyPierre Cadena assumed the role of Interim CEO with immediate effect. -
On 5 March the group appointed
Manuel Stan as new CEO, effective1 July 2024 . -
The group launched online sports betting affiliation in
North Carolina , with an adult population of 8.5m, on 11 March.
Significant events after the period
- On 5 April the group announced the appointment of
Michael Gerrow as CFO, effective15 April 2024 .
Interim CEO
Operational outcomes during the period were again unsatisfactory, especially in North American sports. Stronger competition, tightened marketing spending by operators, and challenging comparables with Q1 2023 - when online sports betting went live in
The legalisation of online sports betting in
Market headwinds in North American sports
Competitive intensity continued to build in North American sports overall, reflecting the entry of more affiliates into the market. Crimped operator marketing budgets again squeezed user traffic and reduced the recruitment of new depositing customers. We nevertheless showed resilience by maintaining stable conversion rates.
In casino, where we are less reliant on operators' marketing budgets, revenue held relatively firmer. Several brand improvement programs are ongoing, including an initiative to overhaul our flagship casino websites, PlayUSA and Bonus.com to improve revenue and long-term value. This process will be completed in Q3 in readiness for an expansion of our casino operations in the latter part of the year. I am pleased to report that we saw the first signs of a turnaround, with quarter-over-quarter growth of 12 percent from our North American casino products.
Products, technology and diversification in focus
Significant internal and strategic changes are being implemented on multiple levels to achieve the turnaround, and these accelerated in Q1. The initiatives have multiple focal points: technology leadership; strategic product development; enhanced operational efficiency; and a new multichannel structure to diversify our product offerings.
In Q1 we made a number of changes to equip the organisation for this leap. We began replacing the existing geography-based operating model, which was geared towards rapid market regulation, with a product-focused operating model, a strategic pivot to enhance our agility and focus on creating high-value, results-oriented products. Key products within our portfolio will be managed as distinct entities, equipped with a clear mission, vision, and brand purpose, all underpinned by detailed financial and operational success metrics to ensure accountability and performance. Fast-response product squads are also being created to address problems as they arise and make sure we respond faster and more decisively to market dynamics than in our recent past.
To prepare for the new chapter in our journey, we strengthened the executive management team with a number of key appointments, including a Chief Technology Officer and a new CEO who will join us on 1 July. We expect to expand the leadership rebuild in the near future with senior appointments for product and commercial roles. I am confident that the new team possesses the experience and acumen to improve operating performance and drive the business forward after several recent disappointing quarters.
Value creation and technical upgrade
Since joining the company as VP Strategy in November last year, I have led the mission to embed the new product-first structure across the organisation. Our close focus on product development is not solely about optimisation; it is also about transforming how we create and deliver value. Social and sweeps casino is a good example. Here we are broadening our products to capitalise on regional synergies across the US as a route to enhancing our visibility and engagement rates. We saw positive initial impacts of this strategy in Q1.
Underpinning all the ongoing initiatives is the introduction of a new technical platform, whose rollout began during the quarter and will be integrated across our global product portfolio in Q2. This will be the first time the group directs all of its monetisation activities through a single, coherent tech architecture. Built for fast scalability, the platform will significantly strengthen our operational robustness and make it easier to centrally deploy, track, and optimise our advertising content across both our core products and new products, such as AI, paid media and sub-affiliation, into which we are expanding.
Building new verticals from the ground up
In AI, our joint venture is progressing at speed. The initial launch of our AI platform took place at one of our sports sites during Q1 and was integrated into a second site post-quarter. We are also developing our sub-affiliation network, bringing previously unreachable traffic sources to our operators, and expect to launch a product by the end of Q2.
In media partnerships, we are looking to expand existing successful deals while also exploring new media avenues. In paid media, we are currently in a pilot phase and are seeing positive results from early campaigns. This vertical is still in its infancy, but we hope to launch a product in Q3 if our efforts proceed according to plan.
Speed to market in these endeavours is important. Equally, it is important to build new verticals methodically and from the ground up. Our esports business is testament to that approach. Having spent several years gradually building traffic and brand authority, this business is today flourishing and generating strong revenue growth and healthy margins. It provides a successful model for how we can take
Presentation of
Interim CEO
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Email: pierre.cadena@catenamedia.com
Email: michael.gerrow@catenamedia.com
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