Catena Media’s second-quarter 2025 performance reflects a business in transition—delivering significant profitability improvements despite top-line pressure. The publicly listed online gambling affiliate reported a 25% year-over-year drop in revenue, but through aggressive cost optimization, streamlined operations, and targeted strategic measures, it achieved triple-digit growth in both Adjusted EBITDA and EBITDA from continuing operations. CEO Manuel Stan highlighted stabilization as a key theme, emphasizing that gains were driven by operational efficiencies rather than seasonal or one-off market events. The first half of 2025 also marked structural changes, including leadership adjustments, substantial headcount reductions, and a sharpened focus on core operations.

Revenue Under Pressure, But Margins Improve

In its interim report for January–June 2025, Catena Media disclosed that Q2 revenue from continuing operations totaled €9.6 million, representing a 25% decline from the €12.8 million posted in the same period of 2024.

However, the sequential trend offered a more nuanced picture: compared to Q1 2025, revenue was down just 2%, and after adjusting for foreign exchange effects from a weaker US dollar—Catena’s primary invoicing currency—revenues actually rose 6%.

The North American market, which remains the company’s dominant revenue driver, saw its Q2 revenue fall 23% year-over-year to €8.7 million from €11.2 million.

One area of notable concern was customer acquisition: the number of new depositing customers dropped 36% to 20,229 in Q2, suggesting ongoing competitive and regulatory headwinds.

Profitability Metrics Show Dramatic Gains

Despite the revenue contraction, Catena Media delivered a sharp improvement in profitability, a clear reflection of its aggressive cost-cutting and business optimization measures.

Adjusted EBITDA from continuing operations surged 104% year-over-year in Q2 to reach €1.4 million, translating to an adjusted EBITDA margin of 14%.

Even more striking, EBITDA from continuing operations soared 483% in the quarter to €2.2 million, signaling that the company’s leaner operating structure is beginning to materially impact the bottom line.

CEO Manuel Stan emphasized that these gains are not cosmetic. “Q2 brought signs that our stabilization efforts are having a measurable impact,” he noted, underscoring that the improved quarter-on-quarter performance stemmed from “underlying business improvements rather than state launches or seasonal tailwinds.”

Stan also observed that revenue has remained broadly consistent across the last three quarters, a positive sign given that Q2 is typically a seasonally weaker period for the business.

Operational Restructuring and Strategic Actions

The quarter was one of profound organizational change for Catena Media.

In April 2025, non-executive director Dan Castillo stepped down from the board. The following month, the company executed a sweeping cost optimization program aimed at removing one layer of management, reducing headcount by over 50 roles—equivalent to roughly 25% of total staff.

This measure is projected to yield annual cost savings in the range of €4.5 million to €5 million, directly supporting profitability in the quarters ahead.

May also saw the election of a new five-member board of directors at the annual general meeting. Søren Vilby joined as a new director, while Erik Flinck, Martin Zetterlund, Sean Hurley, and Stephen Taylor-Matthews were all re-elected, with their mandates extending through to the 2026 AGM.

Catena also announced a divestment of non-core operations, reinforcing its strategic commitment to focus on high-margin, scalable activities. In a further governance move, KPMG Malta was appointed as the company’s external auditor.

Half-Year Performance: Steep Revenue Declines Persist

The first six months of 2025 mirrored the second quarter’s revenue challenges. Revenue from continuing operations in H1 totaled €19.4 million, marking a steep 33% decline compared to the same period in 2024.

In North America, the half-year figure also fell significantly, down 32% year-over-year to €17.4 million.

Customer activity has been under pressure throughout the year: new depositing customers dropped 44% in the first half to 42,147, suggesting that rebuilding acquisition momentum remains one of Catena’s most urgent operational priorities.

Investor Outlook and Strategic Takeaways

While revenue softness—particularly in North America—remains a concern, Catena Media’s Q2 results suggest that its operational turnaround strategy is gaining credibility. The significant expansion in both Adjusted EBITDA and EBITDA margins points to a more disciplined cost structure, one that positions the company to capture operating leverage if and when top-line growth returns.

For investors, the key variables to watch in the coming quarters will be:

Sustained profitability at current or improved margins.

Stabilization of customer acquisition trends, particularly for new depositing customers.

Execution on core-market focus following divestment of non-essential assets.

The impact of currency movements, given the company’s reliance on U.S. dollar invoicing.

If management can maintain its newfound operating efficiency while reigniting growth, the long-term investment case could strengthen considerably—despite ongoing market competition and seasonal volatility.