Catena Media

Catena warns of costly Q4 Euro asset writedowns

Catena Media has warned investors of a reduction in Q4 operating profits due to impairments related to write-downs and restructuring measures of its European media portfolio.   

Publishing a Q4 2022 preliminary update, Catena underlined continued strong US trading, as its North American assets achieved revenues of €21.5m, reflecting a 31% increase on corresponding results of €16.4m.

Having reduced the size of its European media portfolio, Catena’s North American network accounts for 78% of group revenues from ‘continued operations’ which stood at €27.4m (Q4 2021: €23.8m).

Period trading saw Catena discontinue a number of ‘European grey-market assets’ and complete the sale of its AskGamblers portal and other related brands.

Operating a smaller media portfolio, Catena detailed that it will declare an adjusted Q4 EBITDA of €10.8m, representing a margin of 39%.

The firm’s adjusted results will stand against 2021 comparatives, which featured ‘discontinued operations’ revenues of €31.9m and EBITDA of €13.2m.

Q4 bottom-line impacts will see Catena account for a reduction in operating profit due to non-cash impairment charges on goodwill of €7.3m and on other intangible assets of €9.9m  – costs attached to writedowns of a casino asset and implementing European restructuring measures.

CEO Michael Daly commented: “It is pleasing to see such strong performance from our core North American business in Q4. We gained uplift from the launch of licensed online sports betting in Maryland in November and a strong run-in to the go-live for online sports betting in Ohio on 1 January 2023, which delivered our strongest-ever launch period for a US state sportsbook launch.

“We successfully delivered on our strategy of further expansion in North America while completing our strategic review with the sale of AskGamblers and related assets. These preliminary results reaffirm our strategy and provide a solid platform as we enter 2023.”

Entering 2022, Catena informed investors that it had hired investment bank Carnegie AB to revise all strategic options related to the firm’s future, including the ‘entire sale of the business.’

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