Catena Media lowers its financial estimates due to Google search

Catena Media revised its financial projections for the upcoming quarter and scrapped its 2024 forecast in light of recent changes to Google's search policies.

The company cited that Google's modifications in May will impact the effectiveness of its strategic alliances, particularly in the sports betting and online casino content sectors.

Additionally, the updates are expected to lead to decreased revenues and higher costs for some of Catena's media partnerships.

Catena Media anticipates second-quarter 2024 revenue to range from €12.5 million to €13.5 million, with EBITDA expected to fall between €0.5 million and €1.5 million.

The company reiterated its projection for revenue growth in the latter part of 2024, but acknowledged that its previous EBITDA guidance is no longer relevant.

Interim chief executive Pierre Cadena stated that Catena Media is implementing a new product-focused operating model as part of its efforts to revitalise the business. He believes this strategic shift will lead to sustainable growth driven by high-margin operations starting in the second half of 2024.

The director has stated that this action will offer the company more financial flexibility and help alleviate its debt burden.

Catena announced in May that it would be introducing a series of organisational and leadership adjustments to enhance its performance. This decision was made in response to the disappointing first quarter revenue of 16.0 million euros, which was nearly half of the previous year's earnings for the same period.