Catena Media Sells UK and Australian Brands for EUR 6 Million

Catena Media plc has recently taken a significant step towards focusing on the North American market by signing an agreement to sell its UK and Australian online sports betting brands for EUR 6.0 million to Moneta Communications Ltd, a prominent UK-based sports betting affiliate.

The aftermath of last year’s strategic review

The transaction, expected to be finalized in Q3 2023, encompasses the sale of all assets in Catena Media’s UK business, which includes renowned sports betting brands Squawka and GG.co.uk, as well as all shares in the group’s wholly-owned Australian subsidiary.

The decision to divest these businesses reflects the company’s strategic review announced in May 2022, aiming to reshape its brand portfolio and concentrate on the North American online sportsbook and casino affiliation market.

Of the total purchase price, EUR 5.8 million will be paid in cash upon closing, and the remaining EUR 0.2 million will be paid within 75 days of the transaction’s completion. The proceeds from the sale will primarily be used to repay debt, leading to a reduction in the group’s leverage ratio.

Catena’s strategic shift

Following the sale, the divested businesses’ intangible assets were valued at EUR 6.0 million as of June 30, 2023, after an impairment charge of EUR 15.2 million. Over the last 12 months, these businesses have collectively generated revenue of approximately EUR 4.5 million and an EBITDA of about EUR 0.9 million.

In addition to streamlining operations, the sale is expected to reduce the group’s cost base by approximately EUR 2.8 million on an annualized basis, with these savings coming into effect immediately upon closing.

Catena Media CEO, Michael Daly, expressed his satisfaction with the agreement: “This agreement is another milestone on our journey to focus the business on the North American online sportsbook and casino affiliation market. 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.

“I am also delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands and will offer them the scope and support they need to develop and grow.”

Christopher Russel, CEO of Moneta Communications, expressed excitement about the acquisition, stating: “We are happy to have acquired these established and successful brands from Catena Media. This acquisition allows Moneta Communications, as part of the OneTwenty Group to further our plan to acquire fan-focused, profitable digital media assets that cover major sports in important markets. We are excited to further develop and grow the assets and the team.”