Date: 23.10.2024

by Sebastian Warowny

Last update: 23.10.2024 10:42

Catena Media to Cut Jobs as Revenue Falls 30% in Q3 2024

Catena Media is set to eliminate 29 positions in its content production and marketing teams in response to an anticipated 30% drop in third-quarter revenue for 2024. The restructuring aims to align the company’s operations with its product development goals, focusing on a smaller set of flagship products.

Catena Media Reports H1 2023 Performance Amid Shifting Markets

Restructuring for Product Alignment

Effective November 1, Catena Media will implement cost-cutting measures that include the elimination of 29 positions within its content production and marketing teams. This move is part of a broader effort to streamline operations and concentrate on a select number of flagship products that align with the company’s development goals.

The company expects to save €2.2 million annually as a result of the redundancies, with severance costs totaling €0.4 million. CEO Manuel Stan, who joined Catena Media in July, explained that the restructuring would result in a “flatter structure” more closely aligned with the company’s product strategy.

The shift is part of a wider plan to boost revenue generation through enhanced investments in marketing, search engine optimization (SEO), and technology. By reallocating resources, Catena Media aims to focus on products that show better long-term value potential.

Preliminary Q3 2024 Results

Alongside the announcement of layoffs, Catena Media shared its preliminary third-quarter results for 2024. The company revealed that revenue is expected to be between €10.5 million and €11 million, down from €15.9 million in Q3 2023. Adjusted EBITDA is also projected to fall significantly, ranging from €1 million to €1.5 million, compared to €3.2 million last year, with margins shrinking to 10-14% from the previous 20%.

Catena Media reported a €40 million non-cash impairment, largely due to the write-down of certain sports betting assets. This follows the company’s recent shift toward a new product operating model that focuses on core brands and moves away from underperforming, non-core products.

According to Manuel Stan, the company has been “operating at a loss” in its sports betting segment for an extended period, prompting the decision to focus on more profitable products. “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”, Stan stated.

Positive Signals Amid Challenges

Despite these setbacks, Stan noted positive developments, particularly in the company’s cost base. The non-renewal of some media partnerships and optimization of others have helped improve the firm’s adjusted EBITDA, although it has temporarily reduced top-line revenue. “We are keenly aware that the market is looking for signs of a return to revenue growth,” Stan added.

“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.”

Earlier this year, Catena Media launched an “aggressive programme of measures” to tackle its ongoing underperformance. At that time, the company set its sights on achieving organic revenue growth in the second half of 2024, aiming to reverse the current downward trend.