Catena Media Cuts 25% of Staff After Q1 2025 Revenue Plunge

A Tough Quarter Sparks Big Changes

Catena Media, a key player in iGaming affiliation, hit a rough patch in Q1 2025, reporting €9.8 million in revenue, a 39% nosedive from €16 million in Q1 2024.

Adjusted EBITDA cratered 51% to €0.9 million, with the margin slipping to 9% from 12%. Facing these grim numbers, the company axed over 50 jobs, about 25% of its staff, and scrapped a management layer to save €4.5-5 million annually.

“Q1 was a disappointing quarter that showed we still have substantial work ahead to fully stabilise the business and rebuild profitability,” said CEO Manuel Stan.

Why the Numbers Tanked

The revenue slide, only 3% down from Q4 2024’s €10.2 million, hints that the worst declines might be over, but Q1 still stung. North America, accounting for 89% of revenue, saw €8.8 million, a 39% drop from €14.3 million in Q1 2024, driven by a 69% crash in sports betting revenue to €1.7 million and a 20% dip in casino revenue to €7 million.

New depositing customers (NDCs) plummeted 50% to 21,918, with North America’s NDCs down 49% to 21,000. “The 3 percent decrease in revenue from Q4 2024 was the smallest quarterly drop in recent periods,” Stan noted, but lower margins from sub-affiliation and a slight uptick in staff costs dragged EBITDA down.

Search ranking volatility, with keywords slipping to 6.22 from 5.82, and no new U.S. state launches, unlike North Carolina’s 2024 debut, added to the pain.

Layoffs and Cost-Cutting in Full Swing

To stop the bleed, Catena rolled out tough cost-cutting measures on May 13, 2025. Laying off over 50 employees and cutting a management layer slashed the workforce by 25%, targeting €4.5-5 million in yearly savings.

The company also consolidated its tech stack, ditched outdated software subscriptions, and shifted from Google to Microsoft, saving another €0.8 million annually. Total savings hit €5-6 million a year, a big move to protect margins.

“We have therefore taken strong action that I am confident will see costs decrease in absolute and relative terms in the coming quarters,” Stan said.

These steps aim to spark profitability in a company grappling with competitive pressure and regulatory shifts, especially in North America’s sports and casino segments.

Catena didn’t stop at layoffs. To free up cash for tech investments, the board deferred interest payments on hybrid capital securities starting in July, with no plans to redeem them soon.

“Today’s decision was difficult and not taken lightly,” said Chairman Erik Flinck, adding that it’s “essential to secure the group’s financial stability and to enable investment in development and growth.”

The company plans to repay senior bonds in June and expects €3.5 million from asset sales by May’s end. With €24.6 million in cash and a net cash position of €3.2 million, Catena’s betting on these moves to fund growth in markets like Missouri, set for online sports betting in late 2025, and potentially Alberta.

Catena’s Q1 woes, from a 51% EBITDA drop to a 50% NDC slump, forced a hard reset. The layoffs and tech savings, paired with financial tweaks, set the stage for leaner operations, but challenges like search volatility and competition loom. “We believe that deferring interest payments on the hybrid capital security is essential to secure the group’s financial stability,” Flinck emphasized, signaling a long-term focus.