Affiliate and media giant Catena Media plc saw a significant decrease in revenue in its full-year 2023 results, sparking questions about its future. The company’s CEO, Michael Daly, was candid about the disappointment, especially considering the optimism expressed at the beginning of the year. Catena had high hopes for North America, with a focus on the US market. However, it experienced a sharp decline in revenue, with a 21% drop in North American revenue.

The company’s overreliance on the US market, which accounts for over 80% of its revenue, has become a cause for concern. Its Q4 results displayed a rapid downward trend, with revenue plummeting 43.0%. This trend had started as a more gradual decrease in previous quarters, culminating in a 75% decline in share price year-on-year.

The company’s annual financials also presented grim figures, with a 22% decline in revenue and a 47.0% decrease in adjusted EBITDA. CEO Daly acknowledged the challenging market headwinds and increased competition in the US as contributing factors to the company’s poor performance.

Despite the setbacks, Daly remains optimistic, emphasizing a strategic reboot focused on investments in artificial intelligence (AI), paid media, and strategic media partnerships. The company aims to become a data and tech leader in its space and expects a return to growth in the second half of the year.

Another player in the market, Better Collective, holds a significant stake in Catena Media. Unlike Catena, Better Collective has exceeded its revenue expectations multiple times and made strategic acquisitions in the US, pointing to its strong position in the market compared to Catena.

The future of Catena Media remains uncertain as it navigates the challenges in the US market and seeks to rebuild its revenue and position in the industry.

By admin