XLMedia revenue drops 29% in 2023

Finance News

XLMedia, a sports and gaming digital media company, has announced audited results for the full year.

Revenue was down 29% in revenue to $50.3 million in 2023.The group paid $7.4 million of deferred and earnout acquisition payments in FY 2023, using approx. $6.0 million of gross proceeds from asset sales to support the payments.

Operating loss of $44.9 million driven mainly by a non-cash net impairment charge of $44.6 million for the US Sports and Europe Sports net of a write back on Europe Gaming (2022: $6.2 million).

At the year end, the group had cash at bank of $4.8 million including short-term deposits and had no borrowings.

The North America business is now in the off season and will see the normal seasonal dip in sports revenues.  During this period, the team continue to prepare the portfolio to maximise revenues from the new NFL season, including working with new and existing partners.

Following the sale of the Group’s Europe and Canada assets, Adjusted EBITDA for continuing operations is estimated to be around $5.0 million for full year 2024, with 2025 benefiting from the full year effect of cost savings made in 2024.

The Group anticipates an initial return of capital to shareholders from the sale proceeds of the Europe and Canada assets in Q4 2024.

David King, Chief Executive Officer of XLMedia, commented “Following the announcement of the sale of the Europe Sports and Gaming business on 1 April 2024, we are focused on driving organic revenues in the North America market, while continuing both to expand our footprint in preparation for new state launches when they happen, while also right sizing the Group’s cost base for 2025.”

Marcus Rich, Chair of XLMedia, commented: “We are delighted to have realised value for shareholders from the sale of the Group’s Europe and Canada assets whilst also providing cash to clear legacy liabilities and working capital for the North America business. We anticipate an initial return of capital to shareholders from sale proceeds in quarter four 2024”.