Catena Media has launched a new cost reduction programme following the sale of its UK and Australian business to Moneta Communications.

The Stockholm-listed affiliate sold sports betting assets including Squawka and GG earlier in August for a total purchase price of €6m, including €5.8m in cash on closing.

In the year leading up to the transaction, the divested brands generated combined revenue of approximately €4.5m and an EBITDA of around €900,000.

Catena has now initiated a cost-cutting programme in an attempt to optimise remaining group operations and save between €3.8m and €4.2m annually.

Those expected annual cost reductions will primarily be achieved by streamlining the company’s support functions across European locations.

The reduced costs are in addition to the €2.8m in annual cost base savings that were announced alongside the original divesture to Moneta on 3 August.

Around 90% of the announced cost reductions are expected to be realised by the end of full-year 2023, with the full impact likely to be felt in the H1 2024 financial figures.

The sale of the UK and Australian business concluded as part of a strategic review announced last May that saw the firm refocus its operational efforts on the US market.

“This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market,” said Catena Media CEO Michael Daly at the time.

“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,” he added.

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