Catena Media is intensifying its focus on the flourishing North and South American sectors by divesting its Italian holdings. This action, part of a broader strategic realignment initiated last year, involves the company offloading its casino and sports wagering businesses in Italy for €19.8 million (approximately $21.6 million). This transaction is anticipated to yield a profit, supplementing the gains from prior sales of other assets such as AskGamblers. Catena Media anticipates aggregate proceeds of roughly €76 million (approximately $82.7 million) from these strategic divestments.
The firm intends to utilize these funds to bolster its financial standing and reduce debt. By optimizing operations and concentrating on the Americas, Catena Media projects annual savings ranging from €38 million to €42 million (roughly $41.3 million to $45.6 million).
CEO Michael Daly remarked, “This finalizes our transition into a company centered on stable, regulated markets, especially in North and South America. With a more agile framework and a robust financial footing, we are poised to capitalize on the long-term expansion prospects in these crucial markets.”
Catena Media has released more information regarding its planned asset sales, revealing deals to offload its Italian digital sports wagering and gaming businesses for €19.8 million. This departure from the Italian market encompasses all of Catena Media’s online sports and casino brands active in the region. While one agreement has been completed, the second is anticipated to conclude in the final quarter of 2023.
The deals specify a payment framework that incorporates phased payments amounting to €12.8 million. These payments will be distributed over time, with portions due in October and November 2023, €3.5 million due in the fourth quarter of 2024, and a concluding €3.5 million due in the second quarter of 2025. Although this sale will decrease liabilities, it will also lead to a write-off of €2.7 million.
It’s important to mention that these Italian brands generated roughly €7.8 million in income and €3.4 million in EBITDA during the preceding 12 months. This divestiture aligns with the company’s strategic emphasis on high-expansion, regulated sectors, particularly within the Americas.
Chief Executive Michael Daly stated, “We are satisfied to have achieved a positive result for our Italian sports betting and casino brands. We believe they are well-situated for future expansion under new management. This divestiture further refines our strategic direction and enhances our financial adaptability, enabling us to optimize operations and redirect resources to our primary areas. We are increasing our focus on the substantial prospects in the growing regulated markets of the Americas.”
These strategic actions follow Catena Media’s recently disclosed Q2 performance, which showed diminishing revenues and a four-year bottom for adjusted EBITDA.
Daley reaffirmed the organization’s dedication to reaching financial success within regulated North American business sectors and outlined bold fiscal targets.
