In August, Catena Media Plc announced it would scale down its European assets while throwing the focus on the North American market. This came after the company decided to place all assets on the Old Continent under strategic review on May 20, right before its interim results came out. Now, the company has announced that it will carry on with the careful examination and assessment of all its gambling segments in Europe. At the same time, the company will keep an eye on all options that would help its business transform. Catena also emphasized that it would throw more focus on reaching faster growth numbers on the North American continent. The European assets review was supposed to conclude by the end of September.
A series of legislation-related challenges led to a slope-down in the growth of the company’s casino vertical in countries like Germany, the UK, Sweden, and the Netherlands. By putting its assets on the continent under strategic review, Catena’s board expects to save €5 million ($4.87 million) on a yearly basis and pump the money into the North American market and its growth programs in store for the markets there. The main goal is to obtain higher margin opportunities, while also keeping a close eye on the LatAm and Asia-Pacific regions that could provide Catena with more lucrative opportunities.
The company with record-breaking retention rates that pass the 5 million mark for monthly users plans to free up more resources and capitalize on its growth options. At the same time, Catena wishes to generate maximum value for both the company and its shareholders.
More Strategic Decisions for Catena
The company’s North American assets currently come from big names like GamingToday.com, Lineups.com, LegalSportsReport.com, and TheLines.com. Recently, Catena’s media coverage in the North American continent was also boosted with the help of a multi-year agreement sealed with Advance Local. The deal will have Catena turn into the authorized publisher of content related to online gambling for NJ.com. The company may also soon decide to sell AskGamblers.com, its online gambling player community.
Catena expects its strategic review on the European continent to end sometime “in the near future.” However, the company did not provide any specific date as to when this might happen.
Catena’s chief executive officer Michael Daly stated North America offered the best return on investment, which is why they should prioritize this market and keep improving their standings there. Daly added that, by missing out on the opportunities that North America has to offer, the company would be “doing a disservice” to its teams and shareholders.