Catena Media plc Interim Report January - June 2025
April-June 2025
- Revenue from continuing operations was EUR 9.6m (12.8), a decrease of 25 percent. Compared to Q1 2025 revenue decreased by 2 percent, and adjusted for currency translation effects arising from a weaker US dollar revenue increased by 6 percent.
- Revenue in North America decreased by 23 percent to EUR 8.7m (11.2), equivalent to 90 percent (88) of group revenue from continuing operations. Compared to Q1 2025 revenue decreased by 1 percent, and adjusted for currency translation effects arising from a weaker US dollar revenue increased by 7 percent.
- New depositing customers (NDCs) from continuing operations totalled 20,229 (31,475), a decrease of 36 percent.
- Adjusted EBITDA from continuing operations increased by 104 percent to EUR 1.4 (0.7), corresponding to an adjusted EBITDA margin of 14 percent (5).
- EBITDA from continuing operations increased by 483 percent to EUR 2.2m (-0.6), equivalent to an EBITDA margin of 23 percent (-4).
- Earnings per share from continuing operations totalled EUR 0.01 (-0.04) before and after dilution.
January-June 2025
- Revenue from continuing operations was EUR 19.4m (28.8), a decrease of 33 percent.
- Revenue in North America decreased by 32 percent to EUR 17.4m (25.5), equivalent to 90 percent (89) of group revenue from continuing operations.
- New depositing customers (NDCs) from continuing operations totalled 42,147 (75,552), decrease of 44 percent.
- Adjusted EBITDA from continuing operations decreased by 9 percent to EUR 2.3m (2.5), corresponding to an adjusted EBITDA margin of 12 percent (9).
- EBITDA from continuing operations increased by 744 percent to EUR 2.8m (0.3), equivalent to an EBITDA margin of 15 percent (1).
- Earnings per share from continuing operations totalled EUR 0.003 (-0.07) before dilution and EUR 0.003 (-0.06) after dilution.
Significant events during Q2 2025
- On 3 April, Dan Castillo stepped down as non-executive director.
- On 13 May, the group announced cost optimisation measures that included the removal of one management layer and the elimination of over 50 roles. These reduced headcount by around 25 percent and will cut annual costs by EUR 4.5-5.0m. The group also announced its decision to defer interest payments on the hybrid capital security until further notice.
- The annual general meeting on 21 May elected a board of directors comprising five members. Erik Flinck, Sean Hurley, Martin Zetterlund and Stephen Taylor-Matthews, were re-elected as directors, and Søren Vilby was elected as a new director. All were elected to serve until the 2026 AGM.
- The AGM appointed KPMG Malta as the company's auditor.
- During the quarter, the group sold its esports-related assets to an industry buyer. The transaction resulted in a gain on disposal of EUR 1.4m. The divestment of these non-core operations will allow the group to focus its resources more closely on core products.
Significant events after the period
- No significant events took place after the period.
CEO Manuel Stan comments
Q2 brought signs that our stabilisation efforts are having a measurable impact. Although we remain cautious in our outlook, it is encouraging to report our strongest quarter-on-quarter performance for Q2 for several years - driven by underlying business improvements rather than state launches or seasonal tailwinds.
Adjusted EBITDA rose strongly to EUR 1.4m and the margin grew to 14 percent. This was more than double the level in Q1 2025 and Q2 2024. The improvement is an encouraging reward for the changes we have implemented in recent quarters.
Revenue was broadly unchanged for the third consecutive quarter, showing resilience in a period that is traditionally the slowest of the year. Adjusted for the weaker US dollar, our primary invoicing currency, revenue increased by 6 percent from Q1.
Cost cuts start to deliver impact
In Q2, we continued to work actively to optimise the operational structure. Measures taken included unifying our tech stack into a more scalable platform and simplifying operations across teams. We also adjusted headcount to reflect the size of the business we are today. As previously stated, these changes will reduce annual costs by EUR 5.3-5.8 million and further embed our leaner, more agile organisation.
Given that the headcount reduction took place largely in May, its full financial impact will start showing from Q3 onwards. Likewise, the gains from consolidating software licences will build during the second half of the year as longer-term agreements come to an end. It is encouraging to see that these and other actions undertaken in the last few quarters have successfully reduced costs and improved profitability without affecting revenue generation.
Diversifying beyond SEO
In Q2 we continued to focus on diversifying our revenue mix by increasing the contribution from non-SEO channels - primarily paid media, subaffiliation and customer relationship management (CRM). These verticals contributed a growing share of revenue and helped offset pressure from ongoing SEO ranking volatility. Developing non-SEO channels does involve increased direct costs, but these are performance-related expenses that rise as revenue grows.
Mixed product performance across verticals
On the product side, casino revenue rose slightly in Q2 compared to Q1 2025, despite seasonal sluggishness and some legal constraints in social sweepstakes. We were nevertheless pleased that growth in regulated casino markets kept us moving forward.
Sports betting revenue decreased around 10 percent quarter on quarter, which was largely expected given the limited sporting calendar in Q2. We anticipate a seasonal lift in Q3 with the start of the new football season. Our restructured sports teams are now fully operational, and the flatter organisational model is delivering greater speed and efficiency as we gear up for peak season.
Investing in growth and de-risking
Looking ahead, we aim to carry forward the earnings momentum seen in June, which was our most profitable month of the quarter. We will also continue to invest in long-term growth and to de-risk the business model by adapting our content and technology for generative AI search and by building CRM and loyalty capabilities to strengthen customer engagement as we build our core brands.
Outside North America, we further sharpened our focus by selling the esports vertical. This delivered a cash injection and freed up internal resources to drive the core business.
In June, we redeemed the senior bond and are now in a net cash position excluding the hybrid capital security, allowing us to invest further in future growth.
As we move into the second half of the year, we will build on the progress made this quarter to improve profitability and build long-term resilience as we diversify the offering, optimise operations, further consolidate our tech stack and grow in areas where we know we can win. I would like to thank our teams for their continued dedication and our shareholders for their support as we move the business forward.
Presentation of Catena Media's results
CEO Manuel Stan and CFO Michael Gerrow will present the Q2 2025 report in a combined webcast and teleconference on 12 August 2025 at 18:00 CEST.
Webcast
Via the webcast you are able to ask written questions. If you wish to participate via webcast, please use the following link:
https://catena-media.events.inderes.com/q2-report-2025
Teleconference
Via teleconference you are able to ask questions verbally. If you wish to participate in the call, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference:
https://conference.inderes.com/teleconference/?id=50051942
The presentation will be available on the website:
https://www.catenamedia.com/investors/financial-reports-and-presentations
Contact details for further information:
Investor Relations
Email: ir@catenamedia.com
Manuel Stan, CEO
Email: manuel.stan@catenamedia.com
Michael Gerrow, CFO
Email: michael.gerrow@catenamedia.com
This information is information that Catena Media plc is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons, on 12 August 2025 at 17:35 CEST.
About Catena Media
Catena Media is a leader in generating high-value leads for operators of online casino and sports betting platforms. The group's large portfolio of brands guides users to customer websites and enriches the experience of players worldwide. Headquartered in Malta, the group employs over 150 people globally. The share (CTM) is listed on Nasdaq Stockholm Small Cap. For further information see catenamedia.com.
