SBC News Voice of the Sports Betting Industry
Catena Media has informed investors that it expects to secure group cost savings of between €3.8m and €4.2m.
The savings target has been set as Catena launches a Cost Reduction Programme following the recent divestment of the firm’s UK and Australia sportsbook assets to Moneta Communications Ltd for €6m.
The deal, announced on 3 August, will see Catena benefit from a €2.8m decrease in its annual cost base, attributable to no longer operating the UK/AUS websites of Squawka and GG.co.uk.
Catena’s governance continues to review the firm’s media portfolio, a process implemented as part of the strategic review announced in May 2022
In its update, Catena informed investors 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’s reorganization aims to streamline the support functions of Catena Media’s European operations, to support the development of a more agile North American media business.
Last year, Catena reduced its European workforce headcount by 25%, generating annual cost savings of approximately €6m. Catena has made no comment on further workforce reduction regarding its cost reduction programme.
This week, Catena announced that it had concluded its share buyback program, a move needed to improve the capital structure of its business by reducing the share capital available on the Stockholm Nasdaq.
Cost savings and proceeds from divestments have been allocated to reduce corporate debt, as the Catena board continues to review all strategic options, including an outright sale of the business.
