Catena Media is cutting over 50 roles, reducing its headcount by about 25 per cent, after suffering a setback in Q1.
The igaming affiliate said a mix of full-time employees and contractors will be made redundant, and one management layer will be removed, after its adjusted EBITDA margin tightened to nine per cent, down from 15 per cent in Q4.
The lower margin followed two successive quarters of improvement for Catena, which saw its adjusted EBITDA margin rise from five per cent in Q2 2024.
In Q3, Catena cut 29 jobs in its content production and content marketing teams to reduce costs by €2.2m.
The company said the latest round of redundancies will “speed internal agility” and deliver annualised cost reductions of between €4.5m and €5m.
The group has also started implementing technological consolidation changes that it expects will generate further savings of €800,000 annually.
Catena Media CEO Manuel Stan said it is “vital that we protect margins,” adding he is confident that the “strong action” taken in response to the setback will see costs decrease in absolute and relative terms in the coming quarters.
Stan said he hopes that the “steep declines” in revenue of past quarters “may now be behind us,” with renue in Q1 reaching $9.8m, down from €10.2m in Q4.
Adjusted EBITDA totalled €900,000, down from €1.5m in Q4.
Revenue in North America was €8.8m, down from €8.9m in Q4.
Catena has also suspended interest payments on its hybrid capital security until further notice.
“The decision reflects the board’s ongoing efforts to secure the company’s long-term financial future,” it said.
“Having repaid the revolving credit facility last year, the group plans to redeem its senior bond next month. These measures will materially ease the company’s financial burden.
“However, further financial structure optimisation is needed to create headroom for the tech-facing investments the group must make to drive the business forward.”
Catena Media’s chairman of the board, Erik Flinck, said: “Today’s decision was difficult and not taken lightly. We believe that deferring interest payments on the hybrid capital security and choosing not to redeem this instrument in the short term are essential to secure the group’s financial stability and to enable investment in development and growth.
“In the interests of transparency, we will provide regular market updates on this matter and on our progress going forward.”
