Catena Media completes strategic review with sale of Italian assets

Catena Media has officially completed its strategic review, which began in 2022, with the sale of the group’s Italian online sports betting and casino gaming business for €19.8 million.

In a statement highlighting its headline numbers and activities between January and September 2023, it said that following the strategic review, 90 per cent of group revenue is being derived from regulated markets.

Group revenue for Q3 of 2023 decreased by 28 per cent, “primarily reflecting a strategic transition of some contracts in North America from CPA to revenue share”.

In North America, 17 per cent of new depositing customers (NDCs) were recruited under revenue share deals in Q3. In September, this number increased to 24 per cent.

The North American EBITDA margin of 44 per cent (56) in Q3 remained strong despite the revenue share transition and stronger competition.

Reported net debt amounted to €25.4 million as at 30th September, and, after adjusting for a scheduled inflow of €46.6 million in divestment proceeds from 2023 to 2025, the group reported a net cash position of €21.2 million.

After the quarter, the group invested in an artificial intelligence joint venture to develop an AI-based affiliation platform for Catena Media as part of plans to drive future growth.

In October, total revenue from continuing operations decreased by 37 per cent compared to last year, reflecting the shift to revenue share. Of NDCs, in October, 23 per cent were recruited on revenue share in North America.

Commenting on the completion of the strategic review, Catena CEO Michael Daly said that the 18-month journey streamlined Catena Media and equipped it for the next chapter in its journey.

“That journey, during which we sold assets for €76 million, repaid debt and refocused the organisation, has come full circle. The divestiture of our Italian businesses completed the review process and finalised our strategic reset. Today, we stand strong as a lean and robust organisation that is net cash positive and geared to invest in future technologies to drive expansion in our core North American market.

“We believe stable, regulated markets offer the best platform to drive sustainable growth in our business over the long term. Predictable regulatory frameworks provide stability for operators and affiliates alike. They create a structure that allows Catena Media to respond effectively to market needs and to confront the operating challenges and opportunities we face in North America and beyond.”