Sharecast News
08 Feb, 2024 14:01 08 Feb, 2024 12:44

XLMedia ends somewhat slower year as expected

dl xlmedia plc xlm consumer discretionary media media media agencies aim xl media logo 20230822 1453
XLMediaSharecast graphic / Josh White

Digital media company XLMedia said in a trading update on Thursday that it anticipated meeting market expectations with revenue and adjusted EBITDA for 2023.

The AIM-traded firm said full-year revenue was estimated to be $50m, while adjusted EBITDA for the same period was pencilled in at around $12m.

As of 31 December, the group held $4.8m in cash, with the decrease in cash during the year attributed to deferred acquisition payments, media partner minimum guarantee payments, and other exceptional costs.

Throughout the period, the group said it saw growth in its premium European assets Nettikasinot, WhichBingo and Freebets.com.

It also made strides in replacing legacy technology and implementing further cost-saving measures.

The board said the US market saw a robust start to the year with the initiation of online sports betting in Ohio.

However, there were notable shifts in operator customer acquisition activity, including the withdrawal of the Barstool Sportsbook betting brand and the launch of ESPN BET in mid-November.

The company said the decline in revenues for 2023 compared to the substantial spike seen in early 2022 was mainly due to the reduced scale of state launches during the period.

“2024 will see the launch of online sport betting in the state of North Carolina in mid-March,” the company’s board said of its outlook.

“North Carolina is expected to be a material market for sports betting, and XLMedia remains well placed for the launch with both owned and media partner brands.

“Further state launches are not currently planned during 2024, but following the US election and into 2025 we expect to see an acceleration in the legalisation of online sports betting in the remaining 20 unregulated US states, with five currently in active ballot initiatives.”

XLMedia said 2024 would be a “year of consolidation”, adding that it would continue to focus on growing its premium European brands and maximising existing opportunities in the US.

“The group will look to deliver additional savings to right-size the business in preparation for further market growth in 2025.”

XLMedia said it would report results for 2023 in early April.

At 1244 GMT, shares in XLMedia were down 8.33% at 6.6p.

Reporting by Josh White for Sharecast.com.


News Source: © 2024 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.