XLMedia’s shares dropped 23% to 5.86 pence each, reaching their lowest point since the company went public in 2014. This decline came after the company announced that it would not be pursuing a sale, as talks with potential buyers did not progress.
The affiliate group now expects its revenues for the full year to fall between $50m and $52m, with adjusted EBITDA projected to be in the range of $12m to $14m. In comparison, XLMedia reported revenue of $73.7m in 2022 and $66.5m in 2021, while EBITDA was $16.7m and $17.9m in those respective years.
XLMedia attributed the decline in expectations to mid-year challenges in the North American market. The company experienced a reduced level of customer acquisition marketing activity by some operators, in part due to the withdrawal of its major partner Barstool Sports. However, the recent launch of ESPN Bet has resulted in an increase in revenues, and XLMedia anticipates a strong finish to the year in North America.
On the positive side, XLMedia’s European brands Nettikasinot, Whichbingo, and Freebets are expected to achieve significant year-on-year growth. However, the shortfall in North American revenues is unlikely to be fully compensated, leading to a decrease in previous forecasts.
While XLMedia has discussed the sale of its assets and the company as a whole, it has determined that a sale of the entire company would not maximize value for shareholders at this time. The company has been actively exiting non-core activities, focusing on growth in North America and strengthening its position in the European sports and gaming market.
Last year, XLMedia sold its entire personal finance assets portfolio and three European online gaming sites as part of this strategy. The sales included the MoneyUnder30 domain and website, which were sold for $675,000, and the three European online gaming sites, generating $840,000 in revenue.
