Catena Media warns of job losses as it enacts strategic review of its European business
Affiliate expands initial review from May to cover entire European segment with aim to release capital for Americas drive
Catena Media has announced potential job losses for its UK and Malta operations as the affiliate broadens its strategic review to the entire European business.
The Stockholm-listed firm initially launched a strategic review on 20 May into its financial trading segment, its flagship “AskGamblers” brand and other unnamed global brands.
The extension of the review will see the company explore its operations in the region, with a key aim of increasing the group’s “focus on higher margin opportunities”.
Catena Media said the assets, acquired prior to mid-2018, have faced challenges in relation to regulatory changes across the continent, namely in the UK, Sweden, Germany and, most recently, the Netherlands.
Catena Media said it aimed to secure annualised savings of at least €5m in operational and capital expenditure with a review of its product portfolio and cost base.
The firm confirmed it has also entered into a formal consultation process for potentially affected staff in Malta and the UK.
Catena Media said the intention of the review is to release resources to capitalise on growth markets in the Americas and Asia-Pacific, which the firm noted would create “maximum value for the company and its shareholders going forward”.
The company intends provide an update on the outcome before the end of September.
The switch to focus on the US comes after CEO Michael Daly divulged to EGR that its previous European M&A process had been “painful”, and that focus was shifting to across the pond.
He said: “North America has to be our focus. We’ve made indications at possibly listing there because the investor market is also different and growing. The ROI is better in North America right now than anywhere else.
“We’d be doing a disservice to our shareholders and our teams everywhere, even if we’re not putting as many dollars into Europe as we are in North America,” Daly added.
Catena Media’s shares remained relatively flat following the announcement at around SEK33 (£2.68).
The affiliate will reveal its Q2 2022 earnings performance on 18 August.