Catena Media has finalized its strategic assessment by divesting its Italian holdings for €19.8 million. This action is a component of a broader strategy to concentrate on regulated online gaming sectors, especially in the Western Hemisphere.
Initiated in May 2022, the evaluation underscored the necessity of this strategic adjustment. The transaction encompassed Catena Media subsidiaries that managed sports wagering and casino offerings in Italy. In total, Catena Media projects a profit of approximately €7.6 million from the sale of various assets. This sum includes the disposal of AskGamblers (€4.5 million), the recent Italian agreement (€19.8 million), transactions in the UK/Australia (€6 million), and other minor divestitures (€5.2 million).
These maneuvers aim to fortify Catena Media’s financial standing and reduce debt. The company also foresees annual cost reductions between €3.8 million and €4.2 million, primarily due to a more streamlined and optimized European operation.
Chief Executive Michael Daly remarked, “This represents a significant turning point in our development. We are sharply focused on stable, regulated markets, with the Americas as our top priority. These asset sales have substantially reinforced our financial position. With a more efficient operation, we can now direct all our efforts and resources toward pursuing the long-term growth prospects we have pinpointed.”
Catena Media is withdrawing from the Italian internet gaming sector. They’ve reached an agreement to divest their Italian trademarks for €19.8 million, essentially ceasing their activities in the nation. This action is part of a broader plan to concentrate on more profitable and less regulated areas, notably in North and South America.
The transaction will be completed in two stages, with the first already finished and the second scheduled to close by the end of 2023. While this will lower the company’s liabilities, it will also result in a €2.7 million impairment charge.
Despite the Italian brands generating a significant €7.8 million in income in the previous year, this departure is consistent with Catena Media’s strategic change. Michael Daly, their CEO, stated that he believes the new owners will provide a more favorable climate for these brands to flourish. He stressed that this sale enables them to simplify their business and focus on the growing regulated markets in the Americas.
This strategic shift comes after a recent decline for the corporation, with second-quarter earnings showing a drop in sales and their lowest adjusted EBITDA in four years. This action represents a significant step toward recovery and a renewed emphasis on high-growth prospects.
Dali reiterated the firm’s pledge to achieve profitability within the North American market—undeniably a challenging objective—and their fiscal aspirations are incredibly ambitious.
