Catena Media, a publicly-listed company, will evaluate its European business. This review aims to pinpoint the company’s weaker casino and betting segments. The company plans to take a closer look into all of its gambling segments and decide which ones to scale down and by how much.
Catena Will Review Its EU Businesses
Catena Media first began reviewing some of its brands in May. Back then, the company focused on some of its most popular brands such as AskGamblers and its financial trading segment. The company was focused on deciding whether it needs to scale down or sell some of these assets.
Now, Catena Media has opted to evaluate the entirety of its betting and casino assets in Europe. This review comes amid weaker performances in the Old Continent caused by regulatory and economic shifts. For example, Germany, the Netherlands, Sweden and the United Kingdom are three of Catena Media’s key markets in Europe. However, the first three of the bunch recently introduced new regulations, resulting in losses for Catena’s brands. The company’s business hasn’t been going great in the United Kingdom either.
As a result, Catena Media may scale down these operations. In addition, the company announced that it may be laying off workers in the United Kingdom and Malta.
The Company Wants to Save Money and Focus on NA
Catena Media’s goal now is to save as much as $5.1 million a year after the review of its assets. The company said it would announce the results of its evaluation after a month.
Catena Media plans to use the money it saves up to focus on higher margin opportunities. This means that the company will be switching its focus from Europe to the lucrative North American market. Catena also said that the LATAM and Asia-Pacific regions are also much more appealing at the moment and provide more opportunities for the company’s business.
The intention is to free up resources to capitalize on growth opportunities in the fast-growing North American business and in the Asia-Pacific and Latin American regions, thus creating maximum value for the company and its shareholders going forward.
Catena Media statement
Michael Daly, CEO of Catena Media, said that North America currently has the best ROI. Daly said that this is why the company must prioritize the NA market. He noted that this action is meant to not only improve the company’s standings but to also generate more value for its shareholders. According to Daly, Catena Media would be “doing a disservice” to its shareholders and teams if it misses out on the opportunities in North America.
Industry enthusiasts should stay tuned for the results of Catena Media’s review and its Q2 results.