Stable revenue for Catena Media in Q2, despite ongoing business optimizations
In a recent announcement, Catena Media, a leading online gambling affiliate, reported its financial results for the second quarter of 2025. The company showcased a significant increase in Adjusted EBITDA and EBITDA from continuing operations, despite a year-over-year decrease in revenue.
The key factors contributing to this growth include diversification of revenue streams beyond SEO, effective cost and organizational management, growth in regulated casino markets, and strategic investments in technology and customer relationship management (CRM).
Diversification played a crucial role in offsetting volatility and declines in traditional SEO rankings. Revenue contributions from non-SEO channels such as paid media, subaffiliation, and CRM increased, helping to boost profitability despite some direct cost increases tied to growing revenue from these channels.
Cost management and business optimization measures also delivered initial positive impacts, boosting profitability despite a 25% year-over-year revenue decline. EBITDA from continuing operations increased by 483% to €2.2 million, with a margin rising to 23% from -4% the previous year, signalling much improved operating efficiency.
Growth in regulated casino markets supported the overall earnings momentum. Although there was a slight quarter-on-quarter increase in casino revenue despite seasonal and legal constraints, this growth contributed positively to the company's earnings.
Seasonal factors and operational restructuring in sports betting led to a 10% quarter-over-quarter decrease in sports betting revenue. However, a restructured, flatter organizational model in sports teams improved operational speed and efficiency, positioning the company for a seasonal uplift in Q3.
The company's focus on long-term growth is evident in its plans to invest in generative AI search, build CRM and loyalty capabilities, and strengthen core brands to sustain earnings momentum going forward. June was the most profitable month of the quarter, and the company expects to maintain this momentum.
Despite the revenue decrease, Catena Media reported a significant increase in Adjusted EBITDA. EBITDA from continuing operations soared by 744% to €2.8m for the first six months. The number of new depositing customers decreased by 36% to 20,229 in Q2 2025.
In other news, Catena Media completed a number of strategic objectives during the second quarter of 2025. The company unveiled a comprehensive cost optimization measure in May, involving the removal of one management layer and eliminating more than 50 roles. The aim was to cut costs by an estimated €4.5m to €5.0m.
At the annual general meeting in May, Catena selected a board of directors consisting of five members. Søren Vilby was elected as a new director, while Erik Flinck, Martin Zetterlund, Sean Hurley, and Stephen Taylor-Matthews were re-elected. Dan Castillo stepped down from his non-executive director role in April.
The company reported revenue from continuing operations of €9.6m in Q2 2025. Revenue in North America decreased by 32% year-over-year to €17.4m for the first six months. Compared to Q2 2024, Q2 2025 revenue decreased by 25%. However, on a quarter-over-quarter basis, revenue decreased only by 2%, with an adjustment for currency translation suggesting a 6% increase.
CEO Manuel Stan stated that the Q2 results showed signs that the stabilization efforts are having a measurable impact. All directors on the board would retain their roles through Catena's next AGM in 2026.
In summary, diversification of revenue streams beyond SEO, effective cost and organizational management, growth in regulated casino markets, and strategic investments in technology and CRM were key drivers behind the significant increase in Adjusted EBITDA and EBITDA from continuing operations in Q2 2025 for Catena Media. The company continues to focus on long-term growth and operational efficiency to maintain its earnings momentum.
- Even though the company experienced a decrease in revenue from traditional SEO channels, it increased its earnings through strategic investments in technology, customer relationship management (CRM), and revenue diversification, such as paid media, subaffiliation, and CRM.
- In addition to the revenue growth in regulated casino markets, Catena Media's focus on long-term growth is evident in its plans to invest in generative AI search, build CRM and loyalty capabilities, and strengthen core brands, which will sustain its earnings momentum going forward.
