Michael Gerrow is set to take on the pivotal role of Chief Financial Officer at Catena Media, stepping into the position on April 15, 2024. Gerrow’s ascendancy to CFO follows the notable resignation of former chief executive Michael Daly and comes amidst significant transitions within the company, including Erick Flinck’s suggested appointment as the new chairman.
Since joining the Malta-based operations of Catena in 2020, Gerrow has made strides within the organization, currently holding the title of vice-president finance out of Miami. The imminent transition into his executive role places him squarely on the group’s executive management team, where his financial acumen and operational familiarity will be vital assets.
The prior fiscal year, 2023, dealt a heavy blow to Catena Media, as the company watched its revenue plummet alongside a devastatingly steep decline in stock price. Following the announcement of such somber financial outcomes in February 2023, Daly opted to relinquish his position. Now, as Gerrow prepares to inherit the financial responsibilities of the corporation, interim chief executive Pierre Cadena has expressed confidence in his capabilities, stating, “We are delighted to see Michael step into the role of group CFO. His extensive experience and deep understanding of our financial operations make him exceptionally well-suited to lead our financial operations going forward.”
Cadena also remarked on the expected smooth transition and the strategic stability Gerrow’s leadership promises for Catena Media’s next business phase. Gerrow will be succeeding Erik Edeen, who took on the responsibilities of the interim CFO in May 2023 following Peter Messner’s exit. Edeen will not be severing ties with Catena Media; rather, he is slated to continue imparting his expertise in a strategic advisory capacity.
Gerrow’s impact is already felt within the organization where he spearheads the financial planning and analysis functions. His educational background features a bachelor’s degree in commerce from Dalhousie University in Halifax, Canada, further bolstered by professional qualifications from CPA Canada and ACCA UK.
However, the fiscal challenges are substantial, reflected in a 41% downturn in revenue for the group during the full year of 2023. The most alarming drop has been observed in the U.S., where revenue fell 21% to €67.1 million. This poses a significant hurdle since the U.S. market generates 80% of Catena’s revenue, with the group actively participating in 27 North American jurisdictions.
Moreover, the volume of new depositing customers from ongoing operations saw a significant drop of 19% to 184,257. Though somewhat mitigated by less severe figures in the first and second quarters, this remains a concern. The adjusted EBITDA from continuing operations adds to the grim picture, with a 47% tumble to €25.4 million and an adjusted EBITDA margin of 33.0%.
The market reacted swiftly and mercilessly to the February 13 release of Catena’s financial results. The share price experienced a staggering 10% fall on the day of the announcement, but more worryingly, it was down 75% in a year-over-year comparison.
Looking ahead, Catena Media faces a challenging pathway to financial recovery and market stability. With Gerrow at the helm of financial operations and a new executive team gearing up to face these challenges, the company is eager to navigate through the turbulent waters of the evolving digital marketplace. Gerrow’s experience and strategic insight will be instrumental as Catena seeks to regain its footing and chart a course toward renewed growth and profitability.
