Strategic review: ‘Catena Media continues to evaluate multiple options for certain parts of its business’

Catena Media, in a message to the market on Friday, said that it “continues to evaluate multiple options for certain parts of its business” following a strategic review announcement that was first made in May 2022.

In an update issued in August, the lead generation iGaming firm revealed that as part of a review of its European business, it had entered into a formal consultation process for layoffs of staff based in Malta and the UK.

In its latest update, the company said “the focus remains on ensuring that [it] is well positioned to fully capture the opportunities on offer in North America and other high growth markets as it seeks to maximise value for shareholders.”

The review was originally planned to conclude by the end of September, however Catena added that it will communicate the results shortly, and that this will be “in the near future but can give no specific date at this point”.

The company’s European business consists of online sports betting and casino affiliation assets, which were acquired prior to mid-2018 and has faced challenges in recent years.

These relate to regulatory changes in markets including the UK, Sweden, Germany and, most recently, the Netherlands. “They also reflect general market developments in Europe, which have affected casino operations in particular,” the company had said in August.

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.

“The intention is to free up resources to capitalise on growth opportunities in the fast-growing North American business and in the Asia-Pacific and Latin American regions, thus creating maximum value for the company and its shareholders going forward.”

With this in mind, Catena in August revealed that the group is aiming to make annual savings of “at least” €5 million in operational and capital expenditures.

It initially announced a review back in May, covering specific segments of the business, such as its flagship brand AskGamblers and its financial trading segment.