In an announcement made today, Catena Media revealed the appointment of Michael Gerrow as the company’s new Chief Financial Officer (CFO). Gerrow, who will start his tenure on April 15, 2024, is set to replace Erik Edeen, who has been serving as the interim CFO. The executive shuffle takes place in the wake of Michael Daly’s exit from his chief executive role at Catena and the suggestion of Erick Flinck for the chairman position.
Michael Gerrow brings to the table a solid background in finance, having joined Catena Media’s Malta operations back in 2020. Presently stationed in Miami as the vice-president of finance, Gerrow’s expertise has been instrumental in steering the company’s financial planning and analysis. With a bachelor’s degree from Dalhousie University in Halifax, Canada, and professional qualifications from CPA Canada and ACCA UK, Gerrow is well-equipped to navigate the company’s financial landscape.
His promotion to CFO coincides with a trying time for Catena Media. Following a dire financial year in 2023, marked by dwindling revenue and a staggering devaluation of share prices, Gerrow’s leadership is expected to be critical in stabilizing the company’s financial footing. The resignation of Michael Daly as chief executive occurred swiftly after the company faced public scrutiny over its financial performance in February 2023.
Pierre Cadena, the interim Chief Executive Officer of Catena Media, commented on the appointment with optimism: “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.” He further emphasized the strategic continuity Gerrow’s promotion would provide for Catena Media during a crucial transformation phase.
Erik Edeen, who assumed the interim CFO role in May 2023 subsequent to Peter Messner’s departure, has concentrated on refining Catena Media’s operational model and financial standing during a challenging period. Edeen is credited with navigating the company through treacherous waters and is set to continue his involvement with Catena Media in a strategic advisory capacity.
The financial discrepancies Catena faced include a 41% plummet in revenue for the full year of 2023. The stark decline in US revenue, which dropped by 21% to €67.1m, is particularly worrying for a company that relies on the United States for 80% of its income. Operating actively in 27 North American jurisdictions, such downturns hint at possible enduring challenges.
There’s more concerning news when it comes to new depositing customers from ongoing operations, which have decreased by 19% to 184,257. Despite a minor cushioning by more favorable numbers in the first and second quarters, the overall picture remains bleak.
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) presentation is also grim, with adjusted EBITDA from continuing operations plummeting by 47% to €25.4m. This corresponds to an adjusted EBITDA margin of only 33.0%. Adding insult to injury, following the release of these figures on February 13, Catena’s share value nosedived. The shares fell by 10% on the day and, taking a year-on-year perspective, they had declined alarmingly by 75%.
In the face of these turbulences, the appointment of Gerrow provides a glimmer of hope for Catena Media. His comprehensive understanding of the company’s financial mechanisms positions him as a pivotal figure in the road to recovery. As Catena continues to navigate a period of restructuring and strategic reassessment, stakeholders are looking towards Gerrow’s upcoming role as CFO with both caution and anticipation, hoping for a swift return to fiscal health and market stability.
