Financial Tech

Catena Continues to Weigh Up Sale Options

In August, the scope of the review was broadened to include the company's entire European online gambling operation

Catena Continues to Weigh Up Sale Options
Catena Continues to Weigh Up Sale Options

The investigation, which was started in May of this year in response to outside parties showing interest in buying certain assets, is investigating the possibility of Catena selling several of its divisions, including its AskGamblers brand. 

In August, the scope of the review was broadened to include the company's entire European online gambling operation. Catena has already started a consultation process for layoffs in Malta and the UK as part of the assessment. 

Initially, Catena said the evaluation would be finished by September. However, the committee stated in an update released today (7 October) that while it anticipates concluding the study "shortly," it is unable to provide a precise end date at this time. 

The organisation stated that it is currently considering a variety of possibilities for several aspects of its business and that it will share the review's findings as soon as it is finished. 

In order to maximise value for shareholders, Catena added:

“The focus remains on ensuring that the company is well positioned to fully capture the opportunities on offer in North America and other high growth markets as it seeks to maximise value for shareholders,” Catena said.

Catena disclosed in August that it had scaled down strategic initiatives and reduced spending during the second quarter as a dramatic decline in global economic circumstances had an impact on trading in several areas. 

In addition to incurring more costs to support new market launches and product updates, Catena claimed that the state of the global economy had a negative impact on performance in some areas of its online sports betting and casino businesses. 

In order to counteract this, Catena cut back on strategic expenditures from what was originally intended. While this had some initial effects in Q2, it was not enough to fully offset the impact of lower margins. 

Revenue for the three months ending June 30, 2022, was €28.9 million, a 4.9% decrease from the second quarter of the group's fiscal year 2021, when it was €30.4 million.

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