Catena Media continues to de-risk its business having transitioned to a new operating model, as leadership views a path to return to long-term sustainable profits.  

The message continues to underline the financial performance of the Stockholm-listed igaming media group, which has reported stable H1 trading posting a return to positive EBITDA of €2.8m.

Completing the reorganisation of its media business focused on North American wagering and iGaming opportunities, Catena notes that Q2 revenues are stable at €9.6m, matching a second successive quarter of corporate income.

While headline figures still display year-on-year declines, leadership projects that the Catena’s structural change will lead to “profitability now returning as cost cuts feed through to the bottom line” following successive quarters of sharp declines.

H1 Trading saw revenue from continuing operations drop by 33% year-on-year to €19.4m, as North America media accounts for 90% of total group income.

Q2 revenues of €9.6m reflect a 25% decline on year comparatives, but are flat compared to Q1 as a result of weakened US currency fluctuations. Meanwhile, adjusted EBITDA in Q2 doubled to €1.4m, an improvement reflecting an operating margin increase to 14% from just 5% in 2024, results helping Catena post its positive EBITDA of €2.8m.

Casino anchors underwhelming sports performance

Casino is noted as the group’s “anchor unit”, contributing €7.8m of Q2 revenue — 82% of the total despite being down 22% on 2024 comparatives. Growth in regulated casino markets provided a welcome offset to seasonal softness and legal restrictions in some sweepstakes products. The vertical posted adjusted EBITDA of €1.4m, representing a 17% margin, but down from last year’s 39% margin as the business adjusts to a changed mix of marketing channels.

Sports betting revenue proved more volatile, falling 37% to €1.7m in Q2. The seasonal lull in the major sports calendar contributed to a 10% quarter-on-quarter dip even when adjusting for currency movements. 

However, cost discipline transformed the segment’s profitability profile, delivering a small EBITDA profit of €20,000 against a €2.2m loss in the same quarter last year. Management said the restructured sports teams are now fully operational ahead of the busier Q3 period, with a flatter structure designed to move faster in competitive state markets.

Cost discipline leads overhaul 

Much of the improvement in the group’s profitability comes from a leaner cost base. Quarterly operating expenses have been cut from €12.1m to €8.2m in just twelve months. This follows a 25% reduction in headcount including the termination of an “entire management layer” and the “consolidation of technology systems into a single, scalable platform”. The group expects annualised savings of between €5.3m and €5.8m, with the full financial effect to be felt from the third quarter onwards.

Group CEO Manuel Stan said: “The headcount reduction took place largely in May, so its full financial impact will start showing from Q3. Likewise, the gains from consolidating software licences will build during the second half of the year. These and other actions undertaken in the last few quarters have successfully reduced costs and improved profitability without affecting revenue generation.”

Pre-empting SEO volatilities 

The reset was triggered by a challenging 2024 in which a Euro-denominated share price sell-off, SEO volatility and underperformance in sports betting forced a fundamental rethink. 

Catena has since tightened its strategic focus on North America, where the pace of state-level regulation continues to offer growth opportunities, while disposing of non-core operations such as its esports vertical. Resources have been reallocated toward higher-margin, performance-based media, with greater emphasis on paid acquisition, sub-affiliation and customer relationship management.

Organic search remains a vital acquisition channel but has been unpredictable. The group continued to experience pressure on rankings in Q2 due to Google algorithm updates and increased competition. 

CEO Stan acknowledged: “We continued to see pressure on our rankings in Q2 due to Google updates and competition. However, a major Google update in early July brought an uptick in performance, and we intend to build on that in Q3.” The investment in diversifying channel mix is partly designed to insulate revenue against such swings.

Alongside the operational overhaul, Catena is investing for the future. Initiatives include adapting its content and technology for generative AI-driven search, enhancing CRM platforms to improve player engagement, and developing loyalty tools to extend customer lifecycles. These efforts are aimed at deepening relationships with operator partners and improving monetisation across the group’s core brands.

America – Do-or-Die 

Stan described Q2 as “our strongest quarter-on-quarter performance for Q2 in several years”, highlighting that this was driven by underlying operational improvements rather than new state launches or seasonal effects. 

“It is encouraging to see that the actions undertaken in recent quarters have reduced costs and improved profitability without affecting revenue generation,” he said. “We intend to carry the momentum from June, our most profitable month of the quarter, into the second half of the year, continuing to invest in long-term growth and resilience.”

Emboldened by its North American vision, management points to growth in established regulated casino markets such as New Jersey, Michigan and Pennsylvania, the ramp-up of recently launched states like North Carolina for sports wagering, and the anticipated opening of additional jurisdictions as major drivers. 

Alongside US expansion, Catena sees increasing opportunities in paid media, sub-affiliation, and CRM-driven player retention to deepen its footprint with operator partners in competitive state markets.

The sale of the esports vertical earlier this year provided a cash injection and freed up operational capacity to focus on these higher-priority opportunities. Entering H2, Catena accounts detail €6.6m in cash and cash equivalents combined with an operating cash flow of circa €4.2m as on 30 June. Cash flow is expected to improve by leadership redemption of senior bonds, executed in June.

CEO Stan concluded: “As we move into the second half of the year, we will build on the progress made this quarter to improve profitability and build long-term resilience as we diversify the offering, optimise operations, further consolidate our tech stack and grow in areas where we know we can win.

“I would like to thank our teams for their continued dedication and our shareholders for their support as we move the business forward.” 

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