Catena Media said a 28 per cent decrease in Q3 revenue to €15.9m reflected a “strategic transition” towards more stable, regulated markets in the Americas – as it separately announced the sale of its Italian-facing assets.

Catena Media

The €19.8m sale of the Italian casino and sports betting assets to two different buyers completes the company’s strategic review which began in May 2022.

Catena Media CEO Michael Daly said the new buyers will give the brands the “right environment to prosper and grow.”

One of the transactions has been completed, with the other set to be finalised in Q4 this year. Sale proceeds will primarily be used to repay debt, Catena said.

Daly added: “Today marks the completion of our transition into a group with a crystal-clear focus on stable, regulated markets, notably in the Americas.

“The divestments we have made have improved our financial position significantly, and now that the streamlining process is complete we can devote our full resources and attention to capturing the long-term growth opportunity we see ahead."

Following the strategic review, Catena said 90 per cent of its group revenue derives from regulated markets.

In its Q3 results, Catena said the decrease in group revenue was attributed to the transition of some contracts in North America from CPA to revenue share.

In North America, 17 per cent of new depositing customers were recruited under revenue share deals in Q3. In September, this number increased to 24 per cent.

Revenue in North America decreased by 29 per cent to €13.3m, while adjusted EBITDA from continuing operations decreased by 65 per cent to €3.1m, translating to an adjusted EBITDA margin of 19 per cent.

Daly said the group can now “strengthen our financial position” and “redeploy capital into our core areas as we double down on capturing expanding opportunities in regulated markets in the Americas."