Catena Media’s Q2 Report Highlights Successful Business Optimization

Overview of Catena Media’s Q2 Performance

Catena Media, a leading affiliate gaming company, has released its financial results for the second quarter, showcasing the benefits of its recent business optimization strategies. Although the company faced some challenges, management is pleased with the progress made through stabilization efforts.

Revenue and Customer Trends

For the quarter ending June 30, 2025, Catena Media reported revenue of EUR 9.6 million (approximately $11.24 million) from ongoing operations, marking a 25% decrease compared to the previous year. The revenue was down 2% compared to the first quarter; however, after adjusting for currency fluctuations linked to a weaker US dollar, the company actually saw a 6% increase in revenue quarter-over-quarter.

The majority of this income, EUR 8.7 million ($10.19 million), was generated in North America, which still accounted for 90% of ongoing operations revenue despite a 23% year-on-year decline. Compared to the first quarter, North American revenue dipped by 1%, but adjusting for currency changes shows a 7% increase in this region.

Catena Media also experienced a notable 36% drop in new depositing customers (NDCs) from continuing operations, registering 20,229 new customers during the quarter.

Financial Performance and EBITDA Growth

Despite the lower revenues and customer numbers, Catena’s adjusted EBITDA from continuing operations surged to EUR 1.4 million ($1.64 million), doubling compared to the same period last year and achieving a margin of 23%, up from -4% previously. Furthermore, EBITDA itself rose sharply to EUR 2.2 million ($2.58 million), a 483% increase from EUR -0.6 million reported in Q2 of the prior year, with earnings per share increasing to EUR 0.01 ($0.012).

Half-Year Results Highlight Optimization Impact

Looking at the first half of the year, total revenue from continuing operations fell by 33% year-on-year to EUR 19.4 million ($22.71 million). In North America, revenue dropped by 32% to EUR 17.4 million ($20.37 million). The number of new depositing customers for the period stood at 42,147, representing a 44% decline versus the previous year.

Adjusted EBITDA for H1 decreased by 9% to EUR 2.3 million ($2.69 million), but EBITDA increased substantially by 744%, reaching EUR 2.8 million ($3.28 million). The respective margins were 12% and 15%. Earnings per share improved to EUR 0.003 ($0.0035) compared to a loss of EUR 0.07 a year earlier.

Additional highlights included the departure of Dan Castillo from his non-executive director role and further cost-cutting measures leading to a 25% reduction in headcount. The company also re-elected five directors and appointed one new member during the annual general meeting in May, naming KPMG Malta as their auditor. Additionally, Catena Media sold its esports division in Q2 for EUR 1.4 million ($1.64 million).

Strategic Outlook and CEO Commentary

Catena Media’s CEO, Manuel Stan, attributed the strong EBITDA performance to ongoing stabilization initiatives, noting that this was the company’s best Q2 in several years. He emphasized that the improvements were due to underlying business enhancements rather than external factors like state launches or seasonal effects.

Stan anticipates that the optimization steps will result in annual cost savings between EUR 5.3 and 5.8 million as the company becomes leaner and more agile. He expects the full impact of these changes to be visible starting in Q3, with further gains likely from the football season.

Meanwhile, Catena is diversifying its revenue sources beyond traditional SEO, expanding into paid media, subaffiliation, and customer relationship management, with these areas increasingly offsetting pressures on SEO-driven income.

“Looking ahead, we aim to carry forward the earnings momentum seen in June, which was our most profitable month of the quarter. We will also continue to invest in long-term growth and to de-risk the business model by adapting our content and technology for generative AI search and by building CRM and loyalty capabilities to strengthen customer engagement as we build our core brands.”

Manuel Stan, CEO, Catena Media

In conclusion, Catena Media is optimistic about building upon its first-half progress throughout the remainder of the year.