Catena Media Sells Italian Assets, Streamlining Focus and Boosting Financial Position

Catena Media plc has reached agreements to sell its online sports betting and casino operations with an Italian focus for a total of EUR 19.8 million, marking a calculated strategic move. The transactions denote the company’s withdrawal from the Italian market and involve two different purchasers.

The decision of Catena Media to divest itself of its Italian online sports and casino businesses is a result of a wider strategic evaluation that was started in May 2022. The business is shifting its attention to regulated areas with strong growth, especially in the Americas. This action is in keeping with continuous initiatives to improve operational efficiency and direct funding toward key areas of concentration.

Both trademarks and assets are being transferred as part of the sale; one transaction has already been completed, while the other is scheduled to close in Q4 2023. Three payments of the whole purchase price will be made: EUR 3.5 million in Q4 2024, EUR 3.5 million in Q2 2025, and EUR 12.8 million in October and November 2023.

Financial Impact and Strategic Benefits

Catena Media’s leverage ratio would decrease as a consequence of the sale’s profits, which totaled EUR 19.8 million and were mostly used for debt repayment. On the other hand, an impairment charge of EUR 2.7 million will be associated with the transactions.

Catena Media CEO Michael Daly expressed satisfaction with the outcome, emphasizing the positive prospects for the Italian brands under their new ownerships. The move is expected to not only sharpen the company’s strategic focus but also bolster its financial position. Daly highlighted the significance of this strategic shift, stating, “The sales further sharpen our strategic focus and strengthen our financial position, allowing us to streamline operations further and redeploy capital into our core areas as we double down on capturing expanding opportunities in regulated markets in the Americas.”

In the 12 months from October 2022 to September 2023, the Italian sports betting and casino brands contributed significantly to Catena Media’s portfolio, with a combined revenue of almost EUR 7.8 million and EBITDA of EUR 3.4 million. The company’s decision to realign strategically demonstrates its resolve to change with the times and prosper in the ever-changing iGaming sector.

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