Catena bids Italy farewell after selling off €19 million in media.

Catena Media has provided further insight into the complete sale of its sports betting and casino media assets in Italy. This announcement was made today, separate from the Q3 trading update, where Catena discussed ongoing declines in revenue as it transitions its North American network from cost-per-acquisition (CPA) contracts to a revenue share model.

The company has reached an agreement to sell its media properties in Italy to two undisclosed buyers for a total purchase price of €19.8m. Investors have been informed that one of the transactions has already been completed, while the other is scheduled to be finalized in Q4 2023. According to the deal terms, the sale will be completed in three separate installments: €12.8m in October and November 2023, €3.5m in Q4 2024, and a final payment of €3.5m in Q2 2025.

The properties in Italy have generated a combined revenue of approximately €7.8m and an EBITDA contribution of €3.4m in the 12-month period from October 2022 to September 2023. The proceeds from this sale will primarily be used to repay debt, resulting in a reduction of Catena Media's leverage ratio.

 

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The recent announcement by Catena Media regarding the sale of its sports betting and casino media assets in Italy provides investors with more clarity on the company's business strategy. As discussed in the Q3 trading update, Catena has been experiencing declines in revenue as it shifts its North American network from cost-per-acquisition contracts to a revenue share model. This transition has had an impact on the company's financial performance.

With regards to the sale of its Italian media properties, Catena has secured agreements with two undisclosed buyers for a total purchase price of €19.8m. One of the transactions has already been completed, while the other is expected to be finalized in Q4 2023. The sale will be completed in three separate installments, with €12.8m to be paid in October and November 2023, €3.5m in Q4 2024, and a final payment of €3.5m in Q2 2025.

In the 12-month period from October 2022 to September 2023, Catena's Italian properties generated a combined revenue of approximately €7.8m and contributed €3.4m in EBITDA. The proceeds from this sale will primarily be used to repay debt, which will result in a reduction of Catena Media's leverage ratio.

This divestment strategy aligns with Catena Media's focus on optimizing its portfolio and deleveraging the company. By selling its assets in Italy, Catena aims to strengthen its financial position and reduce its debt burden. It will be interesting to see how this transaction impacts Catena's overall business performance and future strategic decisions.