XLMedia ends somewhat slower year as expected

(Sharecast News) - 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.