XLMedia has provided an update on its revenue and adjusted EBITDA, stating that they are expected to be at the lower end of the previously forecasted ranges. This decrease is primarily due to shortfalls in North America.
Looking ahead to 2023, XLMedia anticipates a revenue of approximately $50.0m (£39.6m), a decline of 32.2% compared to the previous year. The group’s initial forecast ranged between $50.0m and $52.0m. Additionally, the adjusted EBITDA is projected to reach $12.0m, reflecting a drop of 28.1% from 2022. This aligns with the lower end of the guidance range provided in December, which was between $12.0m and $14.0m.
Delving into the specifics of its 2023 performance, XLMedia highlights various factors that impacted its results. The company mentions the resurgence of premium European assets like Nettikasinot, WhichBingo, and Freebets.com, contributing to growth. XLMedia also emphasizes its progress in replacing outdated technology and implementing cost reduction measures. However, the company experienced challenges in the US market, with significant changes in operator customer acquisition activity, including the withdrawal of the Barstool Sportsbook betting brand and the subsequent launch of ESPN Bet. Additionally, the reduced scale of state launches following New York’s online sports betting introduction in 2022 affected XLMedia’s revenue.
Looking ahead to 2024, XLMedia outlines its plans, which include the anticipated launch of online sports betting in North Carolina in mid-March. The company views North Carolina as a significant market for sports betting and emphasizes its preparedness for the launch with both owned and media partner brands. While XLMedia currently does not have further state launches planned for 2024, it anticipates an acceleration in the legalization of online sports betting in other states after the upcoming election. Currently, around 20 states lack a legal betting market, with some actively considering ballot initiatives. Therefore, XLMedia envisions 2024 as a consolidation year, focusing on its US and European operations and seeking additional savings to optimize the business for future market growth in 2025.
Finally, XLMedia announces the resignation of Caroline Ackroyd, its Chief Financial Officer, who will be leaving the company on 31 March. Ackroyd has accepted a position with an operator in the gambling sector. She has been with XLMedia as CFO since March 2022, although her appointment was made in November 2021.
