Catena Media plc Interim Report January - March 2025

January-March 2025

●      Revenue from continuing operations was EUR 9.8m (16.0), a decrease of 39 percent.

●      Revenue in North America decreased 39 percent to EUR 8.8m (14.3), equivalent to 89 percent (90) of group revenue from continuing operations.

●      New depositing customers (NDCs) from continuing operations totalled 21,918 (44,077), a decrease of 50 percent.

●      Adjusted EBITDA from continuing operations decreased 51 percent to EUR 0.9m (1.9), corresponding to an adjusted EBITDA margin of 9 percent (12).

●      EBITDA from continuing operations decreased 31 percent to EUR 0.6m (0.9), equivalent to an EBITDA margin of 6 percent (6).

●      Earnings per share from continuing operations totalled EUR -0.01 (-0.03) before dilution and EUR -0.01 (-0.03) after dilution.

●      Cash and cash equivalents were EUR 24.6m (23.4) on 31 March.

●      Outstanding shares totalled 78,774,442 on 31 March.

Significant events during Q1 2025

●      No signifcant events during the period.
 

Significant events after the period

●      On 3 April, Dan Castillo stepped down as non-executive director with immediate effect. The board will continue with five non-executive directors until the next annual general meeting, to be held 21 May 2025.

●      On 13 May, the company announced cost optimisation measures, including 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 company also announced its decision to defer interest payments on the hybrid capital security until further notice.

CEO Manuel Stan comments

Q1 was a disappointing quarter that showed we still have substantial work ahead to fully stabilise the business and rebuild profitability. The 3 percent decrease in revenue from Q4 2024 was the smallest quarterly drop in recent periods, signalling that the steep declines of past quarters may now be behind us. However, this small positive was overshadowed by significantly lower adjusted EBITDA, which fell by around 60 percent from Q4, bringing the margin below 10 percent. 

This margin decline, which comes after two consecutive quarters of improvement, reflected a shift in the revenue mix towards more subaffiliation, which comes with lower gross margins, and a small increase in personnel expenses.

Measures taken to cut costs and improve efficiency

We responded after the close of the quarter by implementing major changes to our teams and processes to improve the cost structure and operational efficiency. These included the removal of a layer of senior management and the elimination of more than 50 roles, including a mix of contractors and full-time employees. The outcome was to reduce group headcount by around 25 percent. Together, the actions taken will result in annualised cost reductions of close to EUR 4.5-5.0m.

In parallel, we initiated a shift to a unified Microsoft-based tech stack and terminated several legacy software subscriptions, generating further savings estimated at around EUR 0.8m annually. I am confident that our costs will decrease in both absolute and relative terms in the coming quarters.

Organisational changes spanned all levels, including senior management. In addition to reducing the cost base, the purpose was to establish a flatter internal structure with fewer layers to promote agility. The steps taken were tough, but essential to embed a sustainable cost trajectory and ensure every part of the business is set up to support growth and fast delivery. 

The immediate priority now is to improve long-term profitability by increasing revenue while maintaining a lower cost base. We will achieve this by operating more efficiently and eliminating internal silos. We will build a tech-enabled centre of excellence to identify and execute automation opportunities across the organisation to deliver real, scalable impact - an effort that will require investment.

Together, these measures will equip our teams with better tools, faster processes and cleaner data to support smarter decisions and more agile execution. It is a foundational pillar of our long-term strategy to grow revenue without replicating old cost structures.

Mixed operating performance in Q1

On the revenue side, the picture was mixed in Q1. Our core search business experienced continued volatility in rankings, especially in North America, where search-engine algorithm updates pose an ongoing challenge. Encouragingly, we saw progress in two key diversification areas: subaffiliation and lifecycle marketing. Both these streams reached all-time highs during the quarter, reflecting the success of our long-term efforts to reduce reliance on organic search alone.

While we are excited to see growth in these areas, the replacement of revenue from our owned brands with subaffiliation comes at a lower margin. That said, demand from both partners and operators continues to grow, providing our internal teams with strong motivation heading into Q2.

Continued focus on North America and flagship brands

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. We continue to build our brands and database in preparation for regulation, while in the meantime complying rigorously with the regulations in each state.

In summary, Q1 was a weak quarter that we have addressed through tough measures. With those changes now underway, and with tech-led scalability at the heart of our roadmap, we are laying the groundwork for more consistent performance in the rest of 2025.

Our objective now is to drive profitable revenue growth through focused execution, operational efficiency and scalable growth platforms built for customer engagement. I would like to thank our teams for their hard work and dedication, and our shareholders for their ongoing support as we continue our journey to build a stronger Catena Media.  

Presentation of Catena Media's results

CEO Manuel Stan and CFO Michael Gerrow will present the Q1 2025 report in a combined webcast and teleconference on 13 May 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/q1-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=50051941

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

The information was submitted for publication, through the agency of the contact persons, on 13 May 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 100 people globally. The share (CTM) is listed on Nasdaq Stockholm Small Cap. For further information see catenamedia.com.