Catena Media Exits Italian Market to Focus on North American Growth
Catena Media has divested its Italian holdings for €19.8 million. This action is part of a broader plan to concentrate on the flourishing North American market, especially in the US, where the firm perceives substantial expansion possibilities.
The transaction, encompassing both casino and sports wagering activities, comes after a strategic evaluation initiated in May 2022. This reorganization has already yielded approximately €7.6 million in earnings, with the Italian divestiture representing a considerable portion.
This infusion of funds will enable Catena Media to bolster its financial standing and reduce liabilities. Furthermore, the company anticipates saving between €3.8 and €4.2 million yearly by optimizing processes, primarily within Europe.
Chief Executive Michael Daly indicated that this signifies a pivotal moment for Catena Media, permitting them to completely dedicate to the long-range prospects in regulated sectors such as North America. With a more agile framework and a sharp emphasis on growth, Catena Media is well-positioned for a fresh chapter.
The firm opted to divest its Italian internet wagering and gaming operations. They secured purchasers and will receive €19.8 million, slightly below their initial target. This signifies their complete withdrawal from the Italian market.
The transaction is not a single payment but will be disbursed in stages, with the majority arriving in late 2023 and the remainder distributed throughout 2024 and 2025. Although this sale aids in settling some liabilities, it still represents an overall deficit, approximately €2.7 million to be precise.
It’s important to mention that the Italian branches were performing adequately, generating around €7.8 million in revenue last year and a profit of €3.4 million. Nevertheless, this action is logical for the company as they are intensely focused on expanding in regions like North and South America where they perceive greater opportunities.
Their chief executive stressed their enthusiasm about the agreement, convinced it is a beneficial step for all parties concerned. They emphasized how this divestiture refines their overall approach and bolsters their financial standing, enabling them to fully commit to the thriving American markets.
This announcement follows their recent quarterly performance figures, which were underwhelming – income declined, and earnings reached a four-year nadir. This strategic adjustment is likely a direct reaction to those difficulties, aiming to steer the company back towards success.
Daley highlighted the company’s dedication to establishing a lucrative enterprise within the regulated sectors of the North American market, propelling them toward the attainment of their bold fiscal aspirations.