The organic search policy changes relate to a site reputation abuse update by Google that took effect in May and which adversely affects the rankings of sports betting and casino content published by many major news media websites.
The update will reduce revenues and direct costs arising from some of the group's media partnerships. At the same time,
As a result,
- Revenue for the second quarter 2024 is expected to be in the range of
EUR 12.5-13.5m and adjusted EBITDA to be in the range ofEUR 0.5m-1.5m . - The group reiterates its forecast of a return to revenue growth in the second half of 2024.
The financial impact related to media partnerships cannot be fully quantified at the present time, but could become material over future periods subject to the group's organic traffic offset. In the light of this and the current organisational transformation and transition to a new operating model, the new board of directors and the new executive management team concludes that the previous full-year adjusted EBITDA forecast is no longer applicable, and deems it prudent not to issue new guidance at this time.
Certain lower-margin media partnerships will not be renewed when their current terms end. These partnerships, which will expire in Q2 and Q3 2024, contain more than
"As a result of these changes, combined with the proceeds from our recent divestments, our balance sheet will be much healthier. This provides us with further financial flexibility and strengthens our ability to repay our senior bond next year and to confidently manage the business debt load.
"We continue to see media partnerships as an important source of added value in a fast-moving marketplace. We are ready to invest in partnerships that generate profit for both parties and will explore attractive collaborations in this space while redoubling our focus on our organic products."
Contact details for further information:
Investor Relations
Email: ir@catenamedia.com
Email: pierre.cadena@catenamedia.com
Email: michael.gerrow@catenamedia.com
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