Catena Media released its third-quarter results and the performance from January to September, highlighting a challenging 2024.
Third Quarter of 2024
Catena Media's revenue for the third quarter was 10.7 million euros (11.5 million USD), a 33% decrease year-over-year, with North American revenue falling 29% to 9.5 million euros, and revenue from other parts of the world dropping 53% to 1.2 million euros.
The sports division saw the largest decline in revenue, down 57% to 2.5 million euros, while the casino division's revenue decreased by 19% to 8.2 million euros.
The adjusted EBITDA fell 58% to 1.3 million euros, with an adjusted EBITDA margin of 13%, compared to 20% in the third quarter of 2023.
While the adjusted EBITDA in North America decreased by 24% to 4.4 million euros, other regions actually saw a growth of 36% to 698,000 euros. In this quarter, the sports division's adjusted EBITDA fell by 16% to -1.3 million euros, and the casino division's adjusted EBITDA also fell by 44% to 2.7 million euros during the same period.
Furthermore, the total number of new depositing customers from ongoing operations was 27,342, lower than the 40,104 new depositing customers in the same period last year.
Nine Months of 2024
Looking at the nine months from January to September this year, revenue decreased by 37% to 39.5 million euros, while adjusted EBITDA fell by 84% to 3.9 million euros.
During this period, there were 102,894 new depositing customers, compared to 152,225 in the same period last year.
It is noteworthy that Manuel Stan was appointed CEO of Catena Media in March this year and took office on July 1.
Comments
Catena Media CEO Manuel Stan commented on the performance: "From a revenue perspective, the third quarter was a challenging one, with our revenue down 33% due to the continued poor performance of online sports betting. The decline in revenue also reflects the termination of certain media partnerships and changes in other partner agreements.
"On the other hand, these cost measures increased the adjusted EBITDA margin from 1% in July to 18% in September, and doubled the adjusted EBITDA sequentially. In addition to this profit growth, despite higher than usual volatility due to Google's core updates, our North American casino revenue also saw year-over-year growth, and our main organic search rankings also saw incremental improvements.
"In summary, although the revenue growth in the third quarter did not meet our targets, I am pleased with the progress we have made in improving profitability and optimizing operations. The measures we have taken to reduce costs, renegotiate agreements, and focus on core products have provided us with a solid foundation. As the fourth quarter approaches, we will continue to focus on executing our strategy and restoring profitable growth."
In other performance news today, Bally's Corporation announced its third-quarter results for this year, with a net loss of 247.9 million USD and a slight revenue decline of 0.4%.
