Catena Media reported Q1 2025 revenue of €9.8 million (£8.25 million/ $11.0 million), a 39% drop year-on-year from €16 million and a 3% dip from the €10.2 million recorded in Q4 2024. Catena, however, promises future progress given the changes made during the quarter.
The affiliate posted adjusted EBITDA of €0.9 million, representing a 51% decline from €1.9 million year-on-year and a 40% fall from €1.5 million in the previous quarter. The adjusted EBITDA margin stood at 9%, compared to 12% in Q1 2024 and 15% in Q4. New depositing customers (NDCs) from continuing operations also fell 50% from 44,077 to 21,918.
Catena CEO Manuel Stan described Q1 as “a disappointing quarter”, adding the affiliate still has “substantial work ahead to fully stabilise the business and rebuild profitability”. Although the revenue dip was “the smallest quarterly decrease in recent periods”, he said the positive “was overshadowed by significantly lower adjusted EBITDA”.
25% layoffs
Stan said the affiliate’s immediate focus is to protect margins and “improve long-term profitability by increasing revenue while maintaining a lower cost base”.
To address the margin decline, Catena has begun cost optimisation efforts, which include removing one management layer to improve agility and eliminating over 50 roles, affecting both full-time staff and contractors. These measures will reduce group headcount by around 25% and are expected to generate annual cost savings of €4.5–5.0 million.
The affiliate is also shifting to a unified Microsoft-based tech stack and terminating several legacy software subscriptions, expected to save a further €800,000 annually. It is investing in a “tech-enabled centre of excellence” to identify and roll out automation opportunities for scalable impact.
Sector breakdown
Casino revenue declined 23% year-on-year to €7.6 million, accounting for 78% of total revenue. Adjusted EBITDA dropped 34% to €2.0 million, giving a 26% margin, while NDCs decreased 28% to 14,284.
The sports segment posted a 64% revenue fall to €2.2 million, or 22% of total revenue. Adjusted EBITDA stood at € -1.1 million, with a margin of -49%. NDCs dropped 69% to 7,634 from 24,326 in Q1 2024. However, the affiliate reported its esports revenue rose from the previous quarter as it “prioritised high-intent traffic as part of the group’s ongoing transformation towards a quality-over-quantity model”.
Stan also noted progress in two key diversification areas – subaffiliation and lifecycle marketing – with the former contributing significantly to casino revenue. While the group is “excited” by this growth, it acknowledged that “the replacement of revenue from our owned brands with subaffiliation comes at a lower margin”.
North America focus
North America remains Catena’s primary income source, contributing 89% of Q1 revenue at €8.8 million, down 39% from €14.3 million in Q1 2024, though steady compared to €8.9 million in Q4. The affiliate continues to face challenges from search engine algorithm changes, particularly in this market.
Casino revenue in North America was €7 million, reflecting a 20% year-on-year drop and “ongoing challenges to achieve sustainable operating gains in regulated casino”. Stan also highlighted the affiliate is closely watching regulatory moves in the social sweepstakes sub-segment to prepare for compliance as several US states consider legislation.
Sports revenue fell 69% to €1.7 million, continuing a trend of underperformance and competitive pressure that created “significant headwinds”. The lack of any new state launches this quarter also made comparisons with Q1 2024 difficult, when North Carolina legalised online sports betting.
Looking ahead, Catena will keep consolidating its product portfolio by winding down underperforming brands. For instance, it is currently merging the 3DownNation and The Lines products into an expanded Lineups.com, which will sit alongside LegalSportsReport.com as one of two flagship national brands.