Catena Media appoints new CFO Michael Gerrow
Gerrow will succeed interim incumbent Erik Edeen when he assumes the role on 15 April 2024. His appointment comes just over a month after the departure of Catena chief executive Michael Daly and the recent proposal of Erick Flinck as new chairman.
Gerrow joined Catena’s Malta-based operations in 2020, and in his current role as vice-president finance, is based in Miami. On assuming his new role, he will be part of the group’s executive management team.
Gerrow’s appointment comes after a disastrous 2023 in which the group saw revenue decline and its share price decimated. Daly resigned shortly after the group’s 2023 financial results were published in February.
Gerrow provides “strategic continuity”
Catena interim chief executive Pierre Cadena said: “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.
“Michael’s transition to this role will provide strategic continuity in our executive management team, supporting Catena Media as we continue on the next phase of our journey.”
Edeen was named interim CFO in May 2023 following the departure of Peter Messner. During his tenure, Edeen has focused on improving Catena’s operating model and financial position. Catena said he will continue to support the business in a strategic advisory role.
In his current role, Gerrow leads the group’s financial planning and analysis function. Gerrow holds a bachelor’s degree in commerce from Dalhousie University in Halifax, Canada and professional accounting qualifications from CPA Canada and ACCA UK.
Catena’s challenges following 2023 travails
The group registered a 41% decrease in revenue in its full-year 2023 results.
However, perhaps of most concern is a drop in US revenue, which declined 21% to €67.1m (£57.4m/$72.8m). Given that 80% of all revenue at Catena now comes from the US, with the group active in 27 North America jurisdictions, this could prove problematic moving forward.
There was more bad news for Catena in terms of new depositing customers from continuing operations. This amounted to 184,257, down 19%, although slightly cushioned by not-as-bad figures in Q1 and Q2.
In terms of its EBITDA, this also made for tough reading. Adjusted EBITDA from continuing operations fell by 47% to €25.4m, corresponding to an adjusted EBITDA margin of 33.0%.
What’s more, shortly after the results were released on 13 February, Catena’s share price plummeted. On the day, the price fell 10% but, in terms of year-on-year comparison, its share price was down 75% at the time.