Catena says ciao to Italy following €19m media divestment

Catena Media has shed further insight into the full sale of its sports betting and casino media assets for Italy.

The transaction was announced this morning, separate from its Q3 trading update, in which Catena detailed continued revenue declines as it transitions its North American network from cost-per-acquisition (CPA) contracts to a revenue share model.

A deal to sell its Italy-facing media properties was agreed with two separate undisclosed buyers for the purchase price of €19.8m. Investors were informed that “one of the transactions has been completed and the other is due to complete in Q4 2023.” 

Deal terms will see the sale completed in three separate tranches of €12.8m in October and November 2023, €3.5m in Q4 2024, and a final instalment of €3.5m in Q2 2025. 

Italian properties generated combined revenue in the 12 months from October 2022 to September 2023 of approximately €7.8m and EBITDA contribution of €3.4m. 

Proceeds from the sale will primarily be used to repay debt, thereby reducing Catena Media’s leverage ratio. The transactions will give rise to an impairment charge of €2.7m – a cost accrued in Catena’s FY2023 accounts.

 Q3 trading saw Catena declare that it had completed its 18-month-long strategic review, in which the company divested its European and ROW media properties for a total of €76m. Overhauling its media network, Catena will prioritise growth in North America as the firm’s “focal point for the group’s growth strategy going forward.” 

As it stands, Catena’s North American revenues is at €55m (-13%), representing 88% of the group’s revenue.

The deal sees Catena exit Italy’s online gambling market, which it has operated in since 2018 following its acquisition of the ASAP Italia network for €16m undertaken during the tenure of former CEO Per Hellberg. 

Catena Media CEO Michael Daly said: “We are pleased today to have secured a positive outcome for our Italian sports betting and casino brands. We believe their new ownership will provide them with the right environment to prosper and grow.” 

“The sales further sharpen our strategic focus and strengthen our financial position, allowing us to streamline operations further and redeploy capital into our core areas as we double down on capturing expanding opportunities in regulated markets in the Americas.”