Catena Media outlines cost-saving objectives
The affiliate group aims to save between €3.8m and €4.2m.
UK.- Catena Media has announced that it aims to make cost savings of between €3.8m and €4.2m as it streamlines its business to focus on the US market. The company has agreed to sell its UK and Australian sports betting assets, including Squawka and GG.co.uk, to Moneta Communications for €6m.
The selloff is expected to reduce annual costs by €2.8m. Cost savings and proceeds from divestments will reduce corporate debt. Meanwhile, Catena continues to review its media portfolio as part of its ongoing strategic review, which it says includes the option of a sale.
In the latest update, Catena said that “approximately 90% of the cost reductions announced today are expected to be realized by year-end, with the full impact to be achieved during the first half of 2024”.
Catena has already reduced its staff in Europe by 25 per cent to save around €6m. It’s made no announcement regarding the possibility of further staff reductions but has confirmed that its European support operations are being streamlined to support the development of a more agile business focusing on North America.
Catena has concluded a share buyback programme, reducing the share capital available on the Stockholm Nasdaq.
Catena’s sale of its UK and Australian sports betting assets involves €5.8m in cash on closing and €0.2m within 75 days of closing.
Catena Media CEO Michael Daly said: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market. The strategic review has led us to reshape our brand portfolio to reflect this closer operational focus, and I am pleased to be delivering further progress in that direction.
“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”
Christopher Russel, CEO of Moneta Communications said: “We are happy to have acquired these established and successful brands from Catena Media. This acquisition allows Moneta Communications, as part of the OneTwenty Group, to further our plan to acquire fan-focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”
In February, Catena appointed Erik Edeen as interim chief financial officer (CFO). Replacing Peter Messner, Edeen takes up the role for a second time, having previously served as CFO at Catena from 2019 to 2020.
