Catena Media reported a significant revenue drop in Q1 2025, with earnings from continuing operations falling 39% year-on-year to €9.8 million ($10.7 million). The sharp decline, driven largely by underperformance in North America—its primary revenue driver—underscores a challenging start to the year as the company embarks on a strategic overhaul aimed at long-term sustainability.
Despite the revenue contraction, Catena achieved an adjusted EBITDA of €0.9 million, reflecting a 51% decline and a narrowed margin of 9%, compared to €1.87 million and a 12% margin in Q1 2024. The company attributed the soft performance to ongoing search engine visibility challenges, increased digital ad competition, and macroeconomic headwinds in the U.S. online gambling market.
Strategic Overhaul to Drive Efficiency
Catena Media has initiated a comprehensive restructuring program following an internal operational review. The new strategic roadmap includes:
- Consolidation of global support functions
- A 25% reduction in headcount
- Withdrawal from underperforming geographies
- Increased investment in high-margin segments such as regulated iGaming and sportsbook affiliate marketing
The company expects these initiatives to yield annualised cost savings of approximately €4 million, with visible impact starting in H2 2025. Leadership emphasized that the restructuring is designed to create a leaner, more agile business positioned to capitalise on core markets.
Reinforcing North American Core
North America remains the company’s strategic anchor, generating the lion’s share of revenue in Q1. While performance was muted, Catena noted early signs of recovery toward the end of the quarter, offering a cautiously optimistic outlook for the remainder of the year.
Notably, the company is closely monitoring the evolving regulatory environment in the social sweepstakes casino segment, where some U.S. states are beginning to consider clearer legislative frameworks—potentially opening new monetisation channels.
Expansion in other regions has been placed on hold indefinitely, with CEO Michael Daly reaffirming the company’s intent to double down on North American opportunities. “We continue to concentrate our efforts on North America, where we see the most potential,” Daly said. “Performance outside this region was weak in Q1 and will not be a focus going forward.”
Strengthened Balance Sheet
Catena Media exited Q1 on a stronger financial footing, following the early redemption of its outstanding bonds in April 2025, which left the business entirely debt-free. As of March 31, the company held net cash of €3.2 million, with operating cash flow more than doubling year-on-year, reflecting better working capital discipline and cost management.
Looking Ahead
In parallel with the restructuring, Catena Media is exploring new product verticals and strategic partnerships aimed at diversifying revenue beyond organic traffic. The company is placing increased emphasis on non-search traffic channels, including social media engagement, influencer collaborations, and performance-based media buys.
While Q1 marked a turbulent period, Catena Media’s proactive shift toward a more focused, financially stable business model may lay the groundwork for a second-half rebound—particularly if North American market conditions stabilise and strategic initiatives begin to deliver expected efficiencies.
