Q1 Losses Push Catena Media to Cut Jobs and Freeze Interest Payouts

The iGaming affiliate marketing company Catena Media has begun a new round of cost-cutting measures following a disappointing earnings report for the first quarter of 2025. 

Catena Cuts Workforce by 25% and Suspends Hybrid Security Payments

The company announced plans to cut its workforce by about 25% and stop interest payments on its hybrid capital security. These actions are part of broader efforts to improve its financial outlook.

Revenue for the three-month period ended March 31 fell to €9.8 million ($11 million), a decrease from €10.2 million ($11.4 million) in Q4 2024 and a bigger drop from €16 million ($17.9 million) in the same quarter last year. Adjusted EBITDA took a big hit, falling to €0.9 million ($1 million). This represents a 40% drop from the previous quarter and over a 50% decrease compared to the same time last year. The company’s EBITDA margin shrank to 9% down from 15% in the last quarter.

North America, still Catena’s main market, brought in €8.8 million ($9.8 million) of total revenue, showing a small drop from the last quarter. However, Catena’s growing use of sub-affiliate partnerships, which make less money, and higher staff costs have put a strain on profits.

To fight this slump, Catena is cutting down its structure. They are getting rid of over 50 jobs, both full-time and contract, and taking out a layer of management. These changes should save up to €5 million ($5.6 milllion) each year. More technical streamlining is set to cut costs by another €800,000 ($895,015).

Catena Media Admits More Work Ahead, Prioritizes Profit and Growth Amid Market Pressures

CEO Manuel Stan admitted the company still faces big problems saying that while revenue drop has slowed down, keeping profits high is still the main goal. He stressed that the latest changes to the company structure aim to cut both total and relative costs in the next few months.

At the same time, Catena’s board has chosen to stop paying interest on its hybrid capital security, hinting that they do not plan to pay back this investment soon. The company said this choice is meant to ease money troubles and allow for more focused spending on new products and tech.

Chairman Erik Flinck called the move tough but needed, suggesting it would help ensure long-term financial health and back future plans for growth.

The board promised to keep investors and others in the loop with regular updates. This recent change of direction comes after earlier promises from the company’s leadership that no more job cuts were in the works. Yet, with big names like Bonus.com and PlayUSA seeing fewer visitors, and growing government oversight of sweepstakes in the US, Catena’s shakeup highlights the ups and downs the affiliate marketing world is dealing with right now.