Catena Media has announced it will be laying off 29 employees in advance of the Q3 trading call in an attempt to “streamline and rightsize” the content and marketing teams.
Looking ahead to the call on 7 November, the affiliate booked a non-cash impairment charge of €40m.
Catena cited the authorising of a writedown of “specific sports betting assets” for the impairment charge as it transitions to a new operating model.
As disclosed in H1 trading, Catena modified its remaining US media network, taking the “strategic decision to focus product development efforts on a cluster of core brands.”
Preliminary figures for the firm indicate that Q3 revenues will stand between €10.5-€11.0m (Q32023: €15m). Catena expects adjusted EBITDA to be in the range of €1.0-€1.5m (Q32023: €3.2m), corresponding to a margin of 10-14%.
CEO Manuel Stan commented: “It is important that our balance sheet reflects current realities. In sports betting, we have been operating at a loss for an extended period. We have responded to market challenges by shifting resources away from loss-making products and into those that we believe have the best potential to generate long-term value. I believe that this strategy will position us for success in the coming quarters.”
Staff redundancies will see Catena pay severance costs of approximately €400,000, with Catena projecting cost savings of €2.2m, effective from 1 November 2024.
Stan added: “As part of our drive to embed our new product-led organisation, we are optimising the operational teams to achieve a flatter structure that is more closely aligned with our product goals. Today, our priority is to support all the individuals who are affected by these changes.
“We are keenly aware that the market is looking for signs of a return to revenue growth. Although the figures reported today do not yet show that improvement, we see positive signals from the changes we have made in recent months, such as a leaner cost base and improved search rankings, and we remain on course to achieve our objectives.”
AC Milan has provided SPRIBE with its latest sports sponsorship deal as the Italian football club names the brand its Official Crash Game Partner.
As a result of the partnership, SPRIBE’s flagship crash game Aviator has also been named as AC Milan’s Official Crash Game.
Said to offer “new opportunities for entertainment and a closer connection to the Rossoneri world”, the sponsorship agreement is already underway with SPRIBE supporting the seven-times UEFA Champions League winners.
Maikel Oettle, Chief Commercial Officer of AC Milan, stated: “We are thrilled to welcome SPRIBE and Aviator into the Rossoneri family. This partnership is built on the ambition to connect with our fans in fresh and engaging ways.
“Together with SPRIBE, we aim to offer our supporters an experience that combines the thrill of the pitch with the excitement of gaming, reinforcing the bond between our Club and Rossoneri supporters worldwide.”
Since its launch in 2018, Aviator has garnered over 42 million monthly active players globally, making it one of the most popular crash games in the igaming industry.
David Natroshvili, CEO of SPRIBE, added: “We are pioneers in the crash game format and among the development teams forging significant marketing partnerships with organisations and sports teams, like this agreement with AC Milan.
“This partnership will help Aviator take off in the Italian market, increasing the game’s visibility among Rossoneri fans worldwide. The partnership with AC Milan, following our agreement with UFC, represents a major milestone, further establishing our presence in the sports world.”
The move sees SPRIBE continue to establish itself in the sporting world, adding to a number of sports sponsorships formed by the brand in recent months.
Towards the end of last year, SPRIBE formed an official partnership with the UFC and has since formed several partnerships with the MMA promotion’s fighters, including Johnny Walker and Merab Dvalishvili.
