REG - XLMedia PLC - Pre-close Trading Update

XLMediaAnnouncement

15/12/2023 07:00

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RNS Number : 9086W  XLMedia PLC  15 December 2023

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014. Upon the publication of this announcement, this
information is now considered to be in the public domain.

 

15 December 2023

XLMedia PLC

("XLMedia" or the "Group")

 

Pre-close Trading Update for the Year Ended 31 December 2023

XLMedia (AIM: XLM), a leading global digital media company, provides a
pre-close trading update for the year ended 31 December 2023.

On 28 September 2023 in the Company's interims results, the Company noted that
it had seen a reduced level of customer acquisition marketing activity by some
operators. In particular, the withdrawal of the Barstool brand (a major
partner for XLMedia), from the market and the subsequent launch of ESPNbet has
resulted in a significant change in the revenue profile of the Group's North
American activities. The second half of the year has seen revenues earned in
previous years from August through October, in part moving back to
mid-November onwards.

However, following the launch of ESPNbet in mid-November the Group has
benefited from an anticipated uplift in revenues and expects to deliver a
strong close to the year in North America.

While there is still opportunity to generate significant revenues in the
remainder of the year now that December acquisition budgets have been
confirmed, it is now unlikely that this will fully compensate for mid-period
shortfalls and, consequently, North American revenues will now fall below
previous forecasts.

The Group's premium European brands, Nettikasinot, Whichbingo and Freebets
remain on track to deliver strong year on year growth in the full year.

The Group's revenues for the full year are now expected to be in the range of
$50m to $52m while adjusted EBITDA is expected to be in the range of $12m to
$14m.

The Group expects to see continued progress from its European brands in 2024,
while continuing to build its North American owned and operated brand and
media partner footprint.

M&A Activity

Following the sale of three European Casino assets in July 2023 for a 4.7
times multiple of revenue, the board is exploring the opportunity to create
shareholder value through further asset sales and has had some early
discussions in that regard with potential purchasers, albeit there is no
certainty that any sales will be completed.  In addition, over the last few
months, the Board has discussed with potential acquirors the possibility of a
sale of the whole Company but it is clear that while there is demand for the
assets, given the current share price, a sale of the whole Company is unlikely
to create the most value for shareholders and no current discussions are
ongoing in relation to this. The Board therefore does not plan to undertake
the sale of the whole Company at this time.

For further information, please contact:

 XLMedia plc                                         ir@xlmedia.com

 David King, Chief Executive Officer                 via Vigo Consulting

 Caroline Ackroyd, Chief Financial Officer

 www.xlmedia.com

 Vigo Consulting                                     Tel: 020 7390 0233

 Jeremy Garcia / Fiona Hetherington / Kendall Hill

 www.vigoconsulting.com

 Cavendish Securities plc (Nomad and Joint Broker)   Tel: 020 7397 8900

 Giles Balleny / Callum Davidson

 www.cavendish.com

About XLMedia

XLMedia (AIM: XLM) is a leading global digital media company that creates
compelling content for highly engaged audiences and connects them to relevant
advertisers.

The Group manages a portfolio of premium brands with a primary emphasis on
Sports and Gaming in regulated markets. XLMedia brands are designed to reach
passionate people with the right content at the right time.

 

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