Affiliate Catena Media has concluded its strategic review by finalising the sale of its Italian casino and sports betting assets for €19.8m ($21.6m). This review, initiated in May 2022, marks a strategic shift towards concentrating on regulated markets primarily in the Americas.
The completed divestments are projected to yield approximately €76m in total proceeds, This includes €45m from AskGamblers, €19.8m from Italy, €6m from the UK/Australia region and €5.2m from other sources.
These proceeds are expected to improve Catena Media's financial standing, facilitating debt repayment. Moreover, annualised cost savings between €3.8m and €4.2m are anticipated, largely stemming from operational streamlining in the group's European operations.
Catena Media CEO Michael Daly said: "Today marks the completion of our transition into a group with a crystal-clear focus on stable, regulated markets, notably in the Americas.
"The divestments we have made have improved our financial position significantly, and now that the streamlining process is complete we can devote our full resources and attention to capturing the long-term growth opportunity we see ahead."
The group further detailed the divestment specifics, revealing agreements to sell Italy-facing online sports betting and casino assets for €19.8m. The transactions encompass Catena Media's Italian online sports and casino brands, signalling its departure from the Italian market. While one transaction is finalised, the other is set for completion in Q4 2023.
These transactions involve staggered payments, totalling €12.8m between October and November 2023, €3.5m in Q4 2024 and another €3.5m in Q2 2025. While reducing debt, these sales will result in an impairment charge of €2.7m.
Notably, the Italian brands generated approximately €7.8m in revenue and €3.4m in EBITDA over the past 12 months, prompting the divestment alignment with the group's focus on high-growth regulated markets, particularly in the Americas.
Daly said: "We are pleased today to have secured a positive outcome for our Italian sports betting and casino brands. We believe their new ownerships will provide them with the right environment to prosper and grow. 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."
These strategic moves follow Catena Media's recent Q2 results, showing revenue declines and adjusted EBITDA hitting a four-year low. Daly affirmed the group's commitment to a net cash-positive business focused on North American regulated markets, aiming for ambitious financial targets.
