In a trading update, XLMedia has informed shareholders that it expects its revenue and adjusted EBITDA to be in line with market expectations.
The update was provided ahead of its full FY23 results in early April 2024, which will provide more insight into the company’s 2023 performance and plans moving forward.
According to the update, XLMedia’s FY23 revenues are expected to be in the range of $50m, with adjusted EBITDA for that year around $12m.
The Group also noted that it had cash at bank of $4.8m as of 31 December 2023, constituting a reduction due to “deferred acquisition payments, media partner minimum guarantee payments and other exceptional costs”.
XLMedia’s premium European assets Nettikasinot, WhichBingo and Freebets.com have reportedly seen a “return to growth”, with the Group also advancing its goals of “replacing legacy technology and implementing further cost reduction measures”.
FY23 revenues in the US have been reflective of the reduced scale of state launches in the 12 months to 31 December, contrary to a spike in revenues in early 2022 mainly driven by New York’s launch of regulated online sports betting.
Elsewhere in the US, 2023 started strong with the introduction of online sports betting in Ohio, which was then followed by changes in operator customer acquisition activity partly caused by the withdrawal of the Barstool Sportsbook and the launch of ESPN-BET in mid-November.
Regardless, XLMedia with its owned and media partner brands is well-positioned to capitalise on the upcoming North Carolina online sports betting launch in mid-March.
With US elections on the horizon, the Group revealed that it expects to see “an acceleration in the legalisation of online sports betting in the remaining 20 unregulated US states”.
Going into the new year, XLMedia stated that it will focus on growing its European presence while also looking to maximise commercial opportunities in the US by “delivering additional savings to right-size the business in preparation for further market growth in 2025”.
Last month, XLMedia announced that Caroline Ackroyd will be stepping down as CFO, a role she has held since March 2022, to join an operator within the gambling industry.
Ackroyd will stay with the group until 31 March to assist with an orderly transition.