Manu Stan, CEO of Catena Media, has taken swift action to restructure the embattled business, announcing a further round of sweeping cost cuts following sharp year-on-year revenue fall in Q1 2025 trading.
Group revenue for the three months to March fell 39% year-on-year to €9.8m, down from €16m in Q1 2024, and marginally lower than the €10.2m recorded in the previous quarter. Adjusted EBITDA dropped to €900,000, with margins narrowing to 9%, down from 15% in Q4.
Speaking candidly to investors, CEO Stan acknowledged the severity of the situation but expressed confidence that the worst may now be behind the company.
“Our Q1 results show we still have substantial work ahead to fully stabilise the business and rebuild profitability,” Stan said.
“However, it’s important to note that revenue was only marginally lower than in Q4. That suggests the steep declines we’ve seen over the past few quarters may now be behind us.”
The downturn was led by weakness in Catena’s core market of North America, which contributed €8.8m in Q1 revenue — a notable drop from €14.3m in the prior year and slightly below Q4’s €8.9m. The decline was linked to a revenue shift towards lower-margin sub-affiliation and pressures from increased personnel and media costs.
In response, the company has enacted an emergency cost optimisation programme, eliminating more than 50 full-time and contractor roles — including an entire senior management layer — amounting to a 25% headcount reduction. These actions are expected to deliver annualised savings of between €4.5m and €5m, with a further €800,000 gained through tech stack consolidation.
“We are under no illusions — the business must become leaner and more agile. The decisions to eliminate over 50 roles and simplify our tech stack were not taken lightly. But they are essential. These changes will allow us to reduce costs both in absolute terms and as a proportion of revenue in the coming quarters.”
Stan maintained that the cost programme goes beyond cuts, signalling a shift in strategic focus. The company is doubling down on higher-margin products, brand consolidation, and revenue diversification — notably through sub-affiliation and customer retention capabilities.
“We’re seeing positive traction in our efforts to diversify the group’s revenue streams,” he added. “Segments such as sub-affiliation and CRM are progressing well and showing encouraging momentum quarter on quarter. That’s a critical part of how we intend to futureproof the business.”
Moving forward, Catena Media is pinning its recovery hopes on its flagship North American market. The company cited stabilisation in its casino segment and pointed to upcoming legalisation efforts in Missouri and Alberta, where launches could open new frontiers later in the year.
For the remainder of 2025, the company said it expects no significant regulatory developments in Q2 but reiterated its plan to repay its senior bond in June using proceeds from divestments.
Interest payments on its hybrid capital securities will be deferred from July. While revenue growth may remain modest, Catena is targeting a return to double-digit growth in adjusted EBITDA for full-year 2025.
Stan concluded with a note of cautious optimism: “We’re not forecasting double-digit revenue growth in 2025, but we do believe we can deliver double-digit growth in adjusted EBITDA. Our focus is clear — restore profitability, unlock value in the American market, and build a leaner, more resilient organisation.”
