Catena Stops Investing In Italy After Selling Media For 19 Million Euros

Catena Media has revealed new details about the full sale of its sports betting and casino media assets in Italy.

The deal announcement was made separately from the company’s third-quarter trading results, which noted a decline in revenue due to changes in the North American network’s payment model, moving from cost-per-acquisition (CPA) contracts to a revenue-sharing model.

The sale of the Italian media assets was made to two buyers at a price of 19.8 million euros, while details of these buyers were not disclosed. Investors were told that “one transaction has already been completed and another is scheduled to close in the fourth quarter of 2023.”

The sale will be divided into several stages with specific amounts: 12.8 million euros in October 2023, 3.5 million euros in the fourth quarter of 2024 and a further 3.5 million euros in the second quarter of 2025.

In the last 12 months, from October 2022 to September 2023, total revenue from sales of Italian assets amounted to approximately €7.8 million and contributed EBITDA to €3.4 million.

The proceeds from the sale are primarily used to pay down debt, which reduces Catena Media’s leverage ratio. However, these transactions resulted in losses totaling €2.7 million for the 2023 financial year.

Catena completed the review by disposing of its data assets in Europe and other countries for a total of €76 million. The company’s focus is now on North America, which is seen as a “key strategic hub for future growth.”

Currently, Catena’s North American revenue is €55 million (-13%), representing 88% of the company’s total revenue.

The planned transaction involves the withdrawal of Catena from the online gambling market in Italy. The company began operating in this market in 2018 after acquiring the ASAP Italia chain for 16 million euros. This transaction was completed under the leadership of former CEO Per Hellberg.

Catena Media CEO Michael Daly commented: “We are pleased today to have secured a positive outcome for our Italian sports betting and casino brands. We believe their new ownership 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”.

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