Catena Media, a leading online sports betting and casino company, has recently finalized agreements to sell its Italy-focused assets for a total of almost €20m. The company has sold off its assets in Italy as part of its strategic review initiated in May 2022, with the goal of streamlining its business and focusing on stable markets, particularly in the Americas.
The deals were made with two different buyers, with one transaction already completed and the other set to be finalized before the end of 2023. These transactions come after Catena Media sold assets totaling €76.0m, including the divestment of AskGamblers for €45.0m to GiG in December 2022.
The sale proceeds from the Italian assets will primarily go towards repaying debt, reducing the company’s leverage ratio. The Italian operation generated revenue of €7.8m and EBITDA of €3.4m in the 12 months leading up to September 2023. However, the transactions will result in an impairment charge of €2.7m, including the flagship brand Superscommesse.
Catena Media CEO Michael Daly expressed satisfaction with the outcome, stating, “We are pleased today to have secured a positive outcome for our Italian brands. We believe their new ownerships will provide them with the right environment to prosper and grow.” The aggregate purchase prices for the sales will be paid in three tranches, with a total of €12.8m due in October and November 2023, €3.5m in Q4 2024, and €3.5m in Q2 2025.
In addition to the Italian asset sales, Catena Media has also completed deals to sell UK and Australia assets for €6.0m, along with other assets worth €5.2m. The company has been expanding its operations in the US, recently launching in Kentucky, bringing its total operations to 27 US states and Canadian provinces.
As part of the strategic review, the company has instigated a SEK100m share buyback program and issued new shares. It has also projected cost savings of approximately €3.8m-€4.2m, mainly through streamlining support functions in its European operations.
Catena Media emphasized its belief that stable, regulated markets in North America offer the best framework for long-term engagement and sustainable growth, positioning the region as the focal point for its growth strategy moving forward.