Catena Media maintained profitability in Q1 after posting a 26% year-on-year increase in revenue from continuing operations, with casino and subaffiliation growth helping drive performance during the quarter.
Revenue for the three months to 31 March reached €12.3m, up 26% from the same period in 2025. Catena also reported a 191% jump in adjusted EBITDA during the quarter as its focus on operational efficiency and higher-margin revenue streams continued to support profitability.
Casino revenue increased year-on-year during the quarter, while subaffiliation revenue also climbed. However, sports revenue was down, which the group said reflected a “more balanced quarter” following a sportsbook-heavy Q4.
The affiliate also reported a 58% increase in new depositing customers (NDCs), while North America continued to account for 95% of total group revenue.
Speaking on the firm’s Q1 earnings call, CEO Manuel Stan said Catena was encouraged by the year-on-year trajectory despite softer sequential performance following a strong Q4.
“While this [revenue] is a decline from a very strong Q4, it is a significant step-up from Q1 previous year,” he said. “We continue to focus on operational efficiency and diversification.”
Discussing the wider progress of the business, Stan added: “Viewed in the context of where the business stood 18 months ago, the trajectory is clear. We’ve returned to growth, diversified our revenue sources, and moved from single-digit EBITDA margins to consistently exceeding 20%.”
Casino remains key growth engine for Catena
Breaking down the group’s performance in Q1, casino remained its primary revenue source by some distance. In total, casino revenue increased 43% to €10.9m, representing 88% of all revenue for the quarter, while new depositing customers (NDCs) for casino almost doubled to 28,256.
Revenue was lower on a quarter-on-quarter basis, though this was put down, primarily, to volatility arising from a Google search algorithm update in December. However, Stan said immediately after this update, the group saw “positive signals”, though its rankings subsequently came under pressure.
“It is worth noting the algorithm changes have temporarily elevated some low-relevance products that provide low user value,” he said. “We expect Google’s continued quality-focused refinements to correct this over time.”
In contrast to the casino growth, Catena posted a 34% year-on-year drop in sports revenue to €1.5m. NDCs in this area of the business also declined 17% to 6,317.
According to the group, operating challenges led to continued underperformance within the sports segment. However, it said infrastructure investments are “ongoing” at its top-tier sports products to improve functionality and long-term competitiveness.
Catena remains in the black
Turning attention towards the bottom line, operating costs increased only slightly year-on-year. Coupled with revenue growth, this meant Catena turned a €239,000 operating loss in Q1 2025 into a €1.7m profit.
Pre-tax profit reached €1.8m, in contrast to last year’s €277,000 loss. After paying €550,000 in income tax, net profit stood at €1.3m, compared to an €874,000 loss last year.
In addition, after accounting for €371,000 in positive currency translation impact, bottom-line net profit reached €1.6m, a significant improvement from the previous year’s €1.3m loss.
While net profit was lower than in Q4 of last year, Stan and Catena remained positive about prospects for the rest of 2026, with further growth forecast.
“For Q2 and the remainder of 2026, we remain optimistic that the business is heading in the right direction,” he said.
