Catena Media Cuts Over 50 Jobs Following Q1 Revenue Decline

Catena Media is set to reduce its workforce by around 25%, cutting more than 50 roles, following a difficult first quarter that saw revenues and margins fall.

The iGaming affiliate confirmed that a combination of full-time employees and contractors will be made redundant, while one layer of management will also be removed. The decision comes after its adjusted EBITDA margin shrank to 9% in Q1 2025, down from 15% in Q4 2024.

This decline followed two consecutive quarters of margin recovery, with EBITDA rising from 5% in Q2 to 15% in Q4. However, revenue in Q1 dropped to £8.4m (€9.8m) from £8.7m (€10.2m) the previous quarter, while adjusted EBITDA fell to £770,000 (€900,000), down from £1.3m (€1.5m).

The company said the restructure is expected to improve “internal agility” and deliver annualised cost savings of between £3.9m–£4.3m (€4.5m–€5m). Additional savings of £690,000 (€800,000) are anticipated from recently introduced technology consolidation initiatives.

This is the second major round of job cuts in less than a year. In Q3 2024, Catena laid off 29 employees in its content production and marketing teams to cut costs by €2.2m.

CEO Manuel Stan said:

“It is vital that we protect margins. I am confident that the strong action we are taking will help reduce costs both in absolute terms and relative to revenue in the coming quarters.”

Stan added that the “steep declines” in revenue experienced over recent quarters “may now be behind us.” North American revenue in Q1 was stable at €8.8m, down only slightly from €8.9m in Q4.

In a further effort to strengthen its financial position, Catena has suspended interest payments on its hybrid capital security and will not redeem it in the short term.

“The decision reflects the board’s ongoing efforts to secure the company’s long-term financial future,” the company said.

“Having repaid the revolving credit facility last year, the group plans to redeem its senior bond next month. These measures will materially ease the company’s financial burden. However, further financial structure optimisation is needed to create headroom for the tech-facing investments the group must make to drive the business forward.”

Chairman Erik Flinck commented:

“Today’s decision was difficult and not taken lightly. We believe that deferring interest payments on the hybrid capital security and choosing not to redeem this instrument in the short term are essential to secure the group’s financial stability and to enable investment in development and growth.

In the interests of transparency, we will provide regular market updates on this matter and on our progress going forward.”