Catena Media has divested its Italian holdings for €19.8 million. This action, part of a broader strategic assessment, enables the firm to hone its concentration on the flourishing North American market.
The transaction, encompassing both casino and sports wagering activities, represents a substantial move in Catena Media’s pivot towards regulated sectors. This strategic evaluation, commenced in May 2022, pinpointed North America as a primary region for expansion.
The sale will yield a considerable cash injection for Catena Media, furnishing them with the capital to reduce debt and allocate resources towards growth prospects. This disposal, alongside other strategic maneuvers, is projected to result in aggregate proceeds of roughly €76 million. Moreover, the organization anticipates yearly cost reductions, primarily stemming from enhanced operational efficiencies within its European activities.
Chief Executive Officer Michael Daly indicated that this signifies the culmination of their transformation into an enterprise keenly centered on steady, regulated markets. With a streamlined structure and robust financial standing, Catena Media is advantageously situated to leverage the long-term expansion opportunities in North America.
Catena Media is withdrawing from the Italian market. They’ve reached an agreement to divest their internet sports wagering and gaming operations there for €19.8 million. This departure plan involves securing new ownership for all their Italian sports and gaming brands.
One aspect of the agreement is already finalized, with the remaining portion anticipated to conclude by the final quarter of 2023. The disbursements will be staggered: €12.8 million arriving this October and November, followed by €3.5 million in the last quarter of 2024, and a concluding €3.5 million in the second quarter of 2025. While this transaction will aid in reducing their liabilities, it will also lead to a €2.7 million impairment charge.
It’s important to highlight that these Italian brands were performing admirably, generating approximately €7.8 million in income and €3.4 million in EBITDA over the preceding year. Nevertheless, this action is part of Catena Media’s broader strategy to concentrate on high-expansion, regulated sectors, specifically in the Americas.
Michael Daly, Chief Executive Officer of Catena Media, conveyed his contentment with the agreement, stating that they are confident the new ownership framework will furnish the appropriate setting for these brands to prosper. He stressed that this sale refines their strategic direction and bolsters their financial standing, enabling them to optimize operations and reallocate resources into core domains. Their objective is to vigorously pursue the burgeoning prospects in regulated markets throughout the Americas.
This strategic adjustment follows Catena Media’s recent second-quarter performance figures, which disclosed a decrease in revenue and their most modest adjusted EBITDA in four years.
Daley reaffirmed the collective’s dedication to attaining favorable unrestricted cash streams within regulated North American sectors, advancing toward their aspiring fiscal objectives.