Key points:
- Catena Media reported a 39% year-on-year revenue decline to €9.8m ($10.7m) in Q1 2025
- The company achieved an adjusted EBITDA of €0.9m and is focusing on restructuring its operations for long-term growth
Overview
Catena Media has published its interim financial report for January-March 2025, marking a quarter of operational recalibration and revenue contraction.
Revenue from continuing operations totalled €9.8m, down 39% year-on-year. The company attributed the decline primarily to subdued performance in North America, its largest market, which continues to face search-related challenges and macro-economic pressures.
Financial highlights
Catena Media delivered an adjusted EBITDA of €0.9m for Q1 2025, representing a decrease of 51% and corresponding to an adjusted EBITDA margin of 9%.
This figure compares with €1.87m and a 12% margin in the same period last year. The company said it remains focused on maintaining profitability while executing operational changes to drive long-term efficiency and growth.
Strategic and operational shifts
The company has completed a full internal review and initiated a new phase of restructuring aimed at streamlining operations.
Key measures include centralising global support functions, reducing total headcount by approximately 25%, exiting underperforming markets and prioritising core competencies such as lead generation and affiliate marketing in regulated markets.
These changes are expected to deliver annualised savings of €4m, with the initial impact projected by the second half of 2025. The shift is part of a broader strategy to simplify the company’s footprint while reinforcing high-margin segments.
Market focus
North America accounted for the vast majority of Q1 2025 revenue, with management reaffirming it as the company’s strategic focus for the foreseeable future.
Given continued volatility in organic search rankings and a more competitive digital advertising environment, the company has paused expansion plans in other regions.
While North America saw headwinds, early signs of stabilisation emerged late in the quarter, providing optimism for improved performance in the second half of 2025.
Good to know: The company is exploring new product categories and strategic partnerships to drive non-organic traffic and revenue
Debt update
A major highlight of the quarter was Catena Media’s strengthened balance sheet. The company is now debt-free following the early redemption of its outstanding bonds in April 2025.
Net cash as of 31 March stood at €3.2m, giving the business financial flexibility as it navigates restructuring. Operating cash flow more than doubled from the previous year to €3.2m, signaling improved cost control despite falling revenue.
CEO comments
Michael Daly, Catena Media CEO, commented: “We continue to concentrate our efforts on North America, where we see the most potential. Performance outside this region was weak in Q1 and will not be a focus going forward. We have no plans to revisit this stance in the near term.
“In casino, we are monitoring regulatory activity in our social sweepstakes sub-segment as some US states make legislative moves. In summary, Q1 was a weak quarter that we have addressed through”
