In This Article:
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Revenue: EUR10.7 million, down 33% from EUR15.9 million in the previous year.
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Adjusted EBITDA: EUR1.3 million, down 58% from the previous year.
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Adjusted EBITA Margin: Improved from 5% in Q2 to 13% in Q3, peaking at 18% at the end of the quarter.
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North America Revenue Contribution: 89% of group revenue, up from 84% the previous year.
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North America Casino Revenue: Decreased 12% year on year, but rose 3% excluding a EUR1.3 million adjustment.
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Sports Revenue: Decreased to EUR2.5 million from EUR5.7 million in Q3 2023.
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Casino Revenue: Decreased by 19% versus the previous year.
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Cost Savings: Annual cost saving of EUR2.2 million from organizational restructuring.
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Net Debt: EUR14.6 million at the end of September, decreased by 43% year over year.
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Cash Balance: EUR11.7 million at the end of the quarter.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Catena Media PLC (LTS:0RUE) has implemented a new organizational structure, leading to an annual cost saving of approximately EUR2.2 million starting in Q4.
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The company has completed a brand new executive management team, enhancing leadership capabilities.
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Despite a decrease in overall revenue, adjusted EBITA improved by 97% quarter on quarter, with margins increasing from 5% in Q2 to 13% in Q3.
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North America contributed 89% of group revenue, showing an increase from 84% in the same period last year.
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The company has made significant efforts to improve profitability, with a 26% decrease in the adjusted cost base compared to Q3 2023.
Negative Points
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Q3 revenue from continued operations was EUR10.7 million, down 33% from the previous year.
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Adjusted EBIDA decreased by 58% from the previous year, indicating financial challenges.
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Sports revenue saw a significant decline, down 60% compared to the previous year, due to increased competition and lack of new state launches.
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North American casino revenue decreased by 12% year on year, highlighting challenges in maintaining growth.
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The company took a non-cash impairment charge of EUR40 million related to a write-down in the book value of certain sports and casino assets.
Q & A Highlights
Q: What measures are being taken in the content and marketing teams to ensure competitiveness while targeting double-digit growth in 2025? A: The biggest changes include prioritizing products that generate the best ROI and aligning marketing, content, and product teams with these priorities. Positive momentum has been observed, particularly in CRM efforts.