The prominent affiliate enterprise, Catena Media, has declared that their comprehensive evaluation is nearing completion. They have discharged 25% of their workforce in Europe. However, they assert that no further layoffs are anticipated. They remain engaged in discussions regarding the potential divestment of certain assets.
The review commenced in May and encompassed the exploration of potential sales of specific divisions, such as AskGamblers. In August, the company resolved to scrutinize its entire online gambling and casino operations within Europe. They indicated that they would be curtailing expenditures on ambitious projects.
This extensive review prompted discussions with personnel in the United Kingdom and Malta concerning potential staff reductions. They have now announced the dismissal of 25% of their European workforce. This measure is projected to yield cost savings of €5.5 million (£4.8 million/$5.7 million) commencing in the initial quarter of 2023.
A representative from Catena informed iGB that they do not intend to implement any additional staff reductions.
Catena has also affirmed that they are actively considering the sale of certain assets. Last month, they disclosed that they were exploring “numerous options” as part of the ongoing review. The review was initially scheduled for completion in September but was subsequently extended.
The evaluation is nearing its conclusion.
Catena Media’s chief executive officer, Michael Daly, declared during the unveiling of their third-quarter financial outcomes that the firm’s strategic evaluation is approaching completion and certain assets are presently being offloaded. Daly stated that a more thorough announcement concerning the review will be issued “in the near future.”
Daly remarked, “This process, which is being overseen by external consultants, is nearing conclusion, with robust interest from numerous parties.”
“As part of the strategic evaluation, actions are being taken and will be taken to enhance the business to capitalize on the expansion of the North American online sports wagering and gambling market, where improving regulatory environments continue to unlock new markets for licensed operators and generate exciting prospects for Catena Media.”
“Other future prospects encompass Latin America and esports, both of which present substantial potential for long-term profitable growth.”
“In Europe, where the current high inflation climate is most evident and player spending pressure is greatest, we have scaled back operations this quarter, concentrating on a smaller strategic core of high-profit brands, primarily in regulated online sports betting markets and, to a lesser degree, in casino. These key brands are situated in the UK and Italy, offering stable short-term growth potential.”
“The restructuring has also witnessed us dispose of some grey market assets as we fully transition to a company centered on the Americas and other regulated and stable markets.”
Its the ideal moment to advocate for expanded online sports wagering and gaming establishments. We’re strategically positioned to maintain our lead and achieve substantial growth in the future.
Catena Media’s financial performance for the third quarter exhibited a blend of positive and negative trends. The company generated €32.3 million in revenue during the three-month period ending September 30, slightly lower than the €33.1 million recorded in the corresponding period of the previous year.
Search-related income experienced a modest decline, while paid revenue saw an increase. The cost of acquiring new clientele remained elevated, but overall expenses registered a significant reduction.
Casino revenue declined, whereas sports betting revenue demonstrated growth. Financial trading revenue experienced a substantial decrease.
The company incurred a net loss of €6.9 million during the quarter, representing a notable improvement compared to the €38.5 million loss recorded in the same period of the preceding year.
In spite of this, Catena also emphasized that modified earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period declined by 28.7% to €11.7 million.
**Focusing on Latin America**
“Following the strategic evaluation, I anticipate the company concentrating on the high-potential Latin American marketplace,” Daly stated. “I am certain that we will soon witness this dynamic area playing a significant role in the company’s expansion in the Americas.
“Another thrilling domain is esports, where our Esports.net brand reported rapid user expansion in the third quarter, and I perceive immense potential for the future.
“We continue to construct for the future and are commencing from a position of unparalleled strength. Our low debt, robust cash flow, organic search proficiency, and streamlined organizational structure position Catena Media as a leader in the online sports betting and casino lead generation sector – in North America and beyond.”
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