In Tactical Switch, Catena Media Reverts to Catenaccio, Pivots to The Americas
The end of an era is fast approaching at top iGaming affiliate Catena Media, which was founded by Swedish boy wonder Erik Bergman and his best friend Emil Thidell in 2012.
Now helmed by ex-US Navy Lieutenant and MIT graduate Michael Daly, Catena, one of the world’s leading online sports betting and casino pointers, is looking to save at least €5 million in annual operating expenses (£4.23m/US$5.16m).
The NASDAQ Stockholm-listed company had reported revenue of €136.1 million last year (£115.25m/US$140.61m). Cuts are to be targeted, mostly, at its European operations and will lead to redundancies among its 500-odd workforce.
The move follows a forensic review initiated this May and ends several years of untrammelled growth, which have been powered by a sweeping corporate policy of mergers and acquisitions.
Catena’s new strategy of “Catenaccio”, known as “bolting the door” in Italian football, signals a pivot to North America, which currently generates around 65 per cent of group revenues.
“The expanded strategic review seeks to identify efficiencies in Catena Media’s European operations and to increase the group’s focus on higher margin opportunities within the region,” Catena said in a company statement.
“The intention is to free up resources to capitalise on growth opportunities in the fast-growing North American business and in the Asia-Pacific and Latin American regions, thus creating maximum value for the company and its shareholders going forward.”
Germany, Holland, Sweden and the UK, were addressed as markets where Catena’s European media business had, in particular, suffered from regulatory challenges hitting growth.
Signalling the start of its European assets sale, the company has now put its AskGamblers.com website on the market.
Redundancies, it is reported, will be focussed on its offices in Malta and Britain