Catena Media has handed out 29 redundancies within its content production and content marketing teams in a move the affiliate has claimed will save €2.2m (£1.8m) per year.
According to the Stockholm-listed business, the job losses came as part of Catena Media’s “ongoing transition to a leaner, product-led organisation”.
The termination package for the 29 impacted staff will result in total severance costs of around €400,000.
Catena Media said the €2.2m net annual cost saving would be effective from 1 November 2024.
With roles in the content production and content marketing teams being culled, the affiliate said the remaining content team will continue to play a “vital role”.
The content division will be realigned, according to Catena Media, to better allow the company to “diversify its funnel through investments in marketing, SEO, conversion rate optimisation and technology”.
The business did not confirm which assets the redundancies would be associated with. Catena Media runs a host of platforms, including Legal Sports Report, PlayUSA and the various localised Play assets.
However, a non-cash impairment charge of €40m has been recognised by the business relating to the writedown in book value of unnamed sports betting assets.
The writedown comes as part of the move to being “product-led” which will see product development efforts focused on a “cluster of core brands”.
Catena Media said: “As a result, the book value of certain non-core products has been determined to have decreased. The impairment charge also takes account of changes in book value estimates that have arisen due to the group’s underperformance in sports betting in recent quarters.”
On the redundancies, Catena Media CEO Manuel Stan said a “flatter structure” would better allow the company to achieve its aims.
Stan said: “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 the changes.”
Alongside the redundancy round, Catena Media released a preliminary Q3 earnings report, in which it expects revenue to land between €10.5m and €11m, down from €15.9m in Q3 2023.
Total adjusted EBITDA is anticipated to sit between €1m and €1.5m, representing a decrease from the €3.2m reported in the corresponding quarter last year.
EBITDA margin should hit between 10% and 14%, down from 20% last year.
Stan added that the sports betting division had been operating at a loss for an “extended period” and that the company had responded to market challenges by shifting resources.
On the Q3 update, the CEO added: “In Q3 I was also pleased to see an improvement in the cost base following the non-renewal of certain media partnerships and the optimisation of other agreements.
“This reduced top-line revenue but positively impacted adjusted EBITDA. 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 objective.”
Catena Media will publish its interim Q3 report on 7 November.
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