Catena places all European media assets under strategic review
Catena Media Plc has this morning announced that it has placed its entire European business under strategic review.
The decision follows a corporate review of Catena’s European media operations initiated on 20 May, with a view to identify and expand efficiencies.
The Stockholm-listed affiliate media publisher will examine all options for its European activity “consisting of online sports betting and casino affiliation assets acquired prior to mid-2018, has faced challenges in recent years”.
The UK, Sweden, Germany and the Netherlands were cited as markets in which Catena’s European media business had suffered from regulatory challenges affecting the growth of its casino vertical.
Catena’s statement read – “The expanded strategic review seeks to identify efficiencies in Catena Media’s European operations and to increase the group’s focus on higher margin opportunities within the region.”
European headwinds were reflected in Catena’s Q1 2022 trading update, which despite achieving an all-time-high revenue performance of €45m, saw group EBITDA remain stagnant at €25m.
Declining European results contrasted with Catena’s continued accelerated growth in North America, where its US media portfolio accounted for 65% of group revenues (€29.5m).
European assets that have been put up for sale include the AskGamblers.com online gambling community that Catena acquired in 2016 for €15m.
Placing all European assets under review, Catena seeks to secure annualised saving of €5m in operational and capital expenditure and will see the company enter a ‘formal consultation process for potentially affected UK- and Malta-based roles.”
The group explained: “Catena Media continues to assess the best outcome for the company and its shareholders for those brands and to engage in dialogue with third parties interested in acquiring such assets. These discussions may or may not result in one or more divestments.”