Catena Media (CTM) Q1 2025 earnings summary

Executive summary

• Revenue from continuing operations fell 39% year-over-year to EUR 9.8m, with a 3% quarter-on-quarter decline and continued underperformance in both casino and sports segments.

• Adjusted EBITDA margin dropped to 9%, reversing two quarters of improvement and down from 12% year-over-year.

• Major cost-cutting measures included eliminating over 50 roles, removing a management layer, and consolidating the tech stack, targeting annual savings of EUR 4.5–6 million.

• Subaffiliation and CRM initiatives showed encouraging progress, diversifying revenue streams and reaching all-time highs, though at lower margins.

• New depositing customers (NDCs) decreased 50% to 21,918, reflecting operational and market challenges.

Financial highlights

• Q1 revenue from continued operations was EUR 9.8 million, down 3% sequentially and 39% year-on-year; North America contributed 89% of group revenue at EUR 8.8 million, down 39% year-on-year.

• Adjusted EBITDA was EUR 0.9 million, down 51% year-on-year; North America adjusted EBITDA was EUR 3.4 million (margin 39%), Rest of World EUR 0.6 million (margin 58%).

• Sports segment revenue dropped 64–69% year-on-year to EUR 1.7–2.2 million; casino revenue decreased 20–23% year-on-year but rose 2% quarter-on-quarter.

• Adjusted EBITDA in North America was EUR 3.4 million, 11% lower year-on-year, but margin improved by 12 percentage points to 39%.

• Minimal cash generated from operating activities; net cash position of EUR 3.2 million as of March 31, 2025.

Outlook and guidance

• No expectation of double-digit organic revenue growth in 2025, but double-digit group-adjusted EBITDA growth is targeted for 2025 and 2026.

• Two new North American market launches expected in 2025: Missouri (late Q3/Q4) and Alberta (date TBD), though timing remains uncertain.

• Net interest-bearing debt (excluding hybrid capital securities) expected to be cleared in June 2025; leverage ratio targeted at 0–1.75.

• EUR 3.5–5 million in divestment proceeds expected by end of May.

• Management expects cost-saving measures and tech investments to improve profitability and efficiency.