US revenue drives first half results at XLMedia

Finance News

XLMeida expects H1 2022 revenue of approximately US$44.5 million (H1 2021: US$32.2 million) and Adjusted EBITDA of approximately US$10.5 million (H1 2021: US$6.6 million).

The Company has traded well across the first six months of the current financial year, buoyed by its newest vertical, US Sports, which produced a strong performance in the period and accounted for 68% of the Group’s revenue, US$30.2 million.

Trading for the current financial year is performing in line with expectations.

The Group’s Sports vertical delivered strong growth during the period, generating revenue of US$34.0 million (H1 2021: US$11.7 million), up 191%.

The North American sports business is underpinned by the Groups strategic acquisitions* enabling XLMedia to provide exclusive relevant local content through the national footprint of Sports Betting Dime and Saturday Football Inc businesses.

The opening of new regulated markets and the signing of new media partnership agreements has allowed the US Sports business to capitalise on the full US sports calendar, in particular the Super Bowl, and deliver strong growth in H1 2022, with revenues of US$30.2 million in the period (H1 2021: US$5.9 million).

There are currently 21 states in the US and one in Canada that permit online sports betting. Ohio, the seventh largest US state in terms of population, is expected to permit sports betting in January 2023.

The Group’s European Sports vertical delivered a solid performance in H1 2022, with revenues of US$3.8 million.

XLMedia’s recently restructured casino and bingo vertical is trading in line with targets, generating revenue of US$8.4 million (H1 2021: US$12.5 million).

Gaming revenues are expected to continue to trade below historic levels, in line with expectations, although the business is now showing signs of stabilising, having suffered from a year-on-year decline in tail revenue.  The business has reduced its cost base to reflect this reduction in the scale of its activities and continues to be a cash generator for the Group.

The Group’s Personal Finance vertical delivered revenues of US$0.8 million (H1 2021: US$6.6 million) and now represents 2% of Group revenue.