Catena Media expands strategic review of European assets with cuts likely in Malta and UK
Catena Media has put its European business segment under the microscope as it seeks to save at least €5m in annual operational and capital costs.
The intention is to free up resources from its legacy European assets so that the affiliate can focus on higher margin growth opportunities in the US, Asia-Pacific and Latam markets.
Catena Media does not provide a comprehensive regional breakdown of revenue. In Q1 2022, however, North American revenue rose by 32.5% to €29.5m, or 65.2% of the overall total.
Some UK and Malta-based employees are expected to be impacted by the cuts. The company will now enter into a formal consultation process for affected employees.
In a public statement, Catena said the strategic review would create maximum value for the company and its shareholders moving forwards.
The review was first initiated in May 2022, when the business revealed it was exploring the potential sale of its popular AskGamblers casino brand.
The review has now been expanded to focus on Catena’s European sports betting and casino assets that are separate to AskGamblers, primarily due to regulatory headwinds in the region.
“The European business, consisting of online sports betting and casino affiliation assets acquired prior to mid-2018, has faced challenges in recent years,” said the company in a statement.
“These relate to regulatory changes in markets including the UK, Sweden, Germany and, most recently, the Netherlands.
“They also reflect general market developments in Europe, which have affected casino operations in particular.”
Catena Media said it will continue to engage with third parties that are interested in acquiring assets such as AskGamblers.
It expects to provide an update on the outcome of the review before the end of September.