XLMedia Plc has notified investors of a slower start to 2023 trading due to its business countering skewed period comparatives matched against 2022 developments.
The London AIM-listed media publisher expects its 2023 interim results to be below expectations due to a stagnant US calendar, in comparison to 2022 activities which featured US wagering launches in the states of New York and Massachusetts.
In outlining challenging market conditions, XLMedia observed a reduction in acquisition spending by operators, indicating fewer promotional activities to attract new customers.
The trend is a reflection of US wagering’s current growth trajectory which is characterised by periodic surges tied to individual state launches.
Irrespective of its short-term outlook, XLMedia said it remains optimistic about a market rebound in the latter half of 2023. An anticipated uplift is linked to the planned delivery of new products in the sector, timed perfectly ahead of the forthcoming NFL season.
Moving forward, XLMedia also predicts an expansion of the betting landscape, with more US states expected to legalize online sports betting and online casinos.
Yet to come into play, 23 states, including major ones like California, Georgia, and Texas, are yet to legalize online sports betting. The situation is similar for online casinos, with legalization pending in 43 states.
Meanwhile, in Europe, XLMedia cited that its performance will match management expectations, as the media publisher intends to post its trading update for H1 2023 in July, providing more insights on the development of strategic initiatives.