Catena Media Cuts Costs in Q1

Catena Media reported weaker Q1 2025 financial results. Consequently, the company launched major cost-saving initiatives, including layoffs and technical upgrades. Additionally, it suspended interest payments on its hybrid capital security to strengthen finances.

Catena Media Reports H1 2023 Performance Amid Shifting Markets

Q1 Financial Results

Catena Media generated EUR 9.8 million in group revenue for Q1 2025. This marks a decline from EUR 10.2 million in Q4 2024 and EUR 16.0 million in Q1 2024. Meanwhile, adjusted EBITDA dropped to EUR 0.9 million from EUR 1.5 million last quarter. The adjusted EBITDA margin fell to 9 percent from 15 percent. In North America, revenue held steady at EUR 8.8 million, slightly down from EUR 8.9 million. A shift to sub-affiliation and higher personnel costs caused the margin drop.

To boost margins, Catena Media implemented a cost-cutting plan. Specifically, it eliminated one management layer and cut over 50 roles. These changes affect both employees and contractors, reducing headcount by 25 percent. As a result, the company expects to save EUR 4.5-5.0 million annually. Furthermore, technical upgrades will add EUR 0.8 million in yearly savings. CEO Manuel Stan said:

“Our Q1 results show we still have substantial work ahead to fully stabilise the business and rebuild profitability. Revenue was only marginally lower than in Q4, signalling that the steep declines of past quarters may now be behind us. Yet it is vital that we protect margins, and we have therefore taken strong action that I am confident will see costs decrease in absolute and relative terms in the coming quarters.”

Hybrid Bond Payment Suspension

The board decided to pause interest payments on the hybrid capital security. Moreover, it will not redeem the instrument soon. These steps follow the 2024 repayment of a credit facility. Next, the company plans to redeem its senior bond in June 2025. Consequently, these actions will free up funds for technology investments. Chairman Erik Flinck stated:

“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.”