Catena Media has announced a new round of cost cutting measures after a poor Q1 2025. The affiliate marketing company will reduce its workforce by around 25% which means more than 50 jobs will be cut across full time and contract roles. The restructuring will also flatten the management structure to speed up decision making and improve efficiency.
This is part of a bigger plan to streamline the company and get back to financial stability as the company is facing falling revenue and profitability. Catena Media estimates the changes will save around €4.5-5 million per year. Additional technical restructuring will save around €0.8 million per year.
Q1 2025 Financial Snapshot
Q1 2025 was tough. Revenue stood at €9.8m down from €10.2m in Q4 2024 and an astounding 39% from €16m in Q1 2024. Adjusted EBITDA was €0.9m down 52.6% on Q1 2024 and 40% compared to Q4 2024. EBITDA margin has declined from 15 percent in Q4 to 9 percent in Q1 2025.
North American revenue, our biggest market, was €8.8m, down from €8.9m in Q4 2024. Profitability was impacted by a shift to lower margin sub-affiliation revenue and a small increase in staff costs.
Executive Perspective
Manuel Stan, Catena Media CEO, said the results were disappointing and that proactive measures are needed to get margins back. “These results show we still have work to do to stabilise the business,” Stan said. “We’ve made tough but necessary decisions to reduce our cost base and I think that will lead to better financials in the next quarters.”
Stan said while the company still faces headwinds, the recent stabilisation of revenue suggests the worst is behind us.
In a separate move to boost liquidity, Catena Media also announced it would stop paying interest on its hybrid capital security. The company has no plans to redeem the instrument in the near future and said the decision is part of a broader plan to reduce pressure and redirect resources to long term investments, especially in technology.
Strategic Priorities Moving Forward
Chairman Erik Flinck commented on the financial restructuring: “We didn’t take this decision lightly. Deferring interest payments and delaying redemption of the hybrid capital instrument is necessary to strengthen our balance sheet. This will allow us to invest in innovation and growth.”
Despite cost cutting and revenue decline, Catena Media is optimistic. The company will keep you updated on its financial strategy, especially around the hybrid capital instrument.
These are big changes, but maybe this is what Catena Media needs to navigate the digital marketing landscape and get back to growth.
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