XLMedia reports U.S. online sports betting boost

Finance News

XLMedia saw a solid start to the year in Europe and North America. North Carolina launched online sports betting on 11 March 2024, after the NFL season had finished, which saw good growth in customer registrations and offers the prospect of further revenues when the new NFL season launches in September.

On 21 March 2024, the Group announced the divestment of its Europe and Canada assets for a fixed sum of $37.5 million and a potential earnout of up to $5.0 million to Gambling.com Group Limited (GAMB). We anticipate an initial return of capital to shareholders from the net sale proceeds in Q4 2024, further details of which will be announced in due course. The Group continues to provide transition support for the agreed six month period to GAMB.

Following the sale of the Europe Sports and Gaming business, Adjusted EBITDA from continuing operations is expected to be approximately $5.0 million for FY 2024.

With no further state launches confirmed, the Group is focused on optimising existing legalised sports betting states, monetising its audiences and preparing the portfolio to maximise revenues from the new NFL season. This includes daily fantasy sports, advertising and sponsorship, as well as new customer acquisition. The North America business is now in the off season and will see the normal seasonal dip in sports revenues.

Growing the Media Partner business remains a key element of our strategy and the Group continue to seek partners in preparation for new state launches as we further expand our partner footprint. Following the May 2024 Google update, the Group is working closely with all its Media Partners, the majority of which, to date, have been unaffected by the changes. The Group continues to focus on its Owned and Operated websites which have seen some improvements in rankings.

Going forward, we will retain our focus on driving organic revenues in the North America market while continuing to prioritise rightsizing the Group’s remaining cost base, allowing it to enter 2025 with an infrastructure commensurate with the requirements of our North America business.

There are still another 20 states yet to legalise online sports betting, including California and Texas, the two most populous states and 43 states yet to legalise online casino gaming.

We would like to thank our shareholders for their support, and look forward to updating shareholders on our progress going forward.”