REG - XLMedia PLC - Trading Update

XLMediaAnnouncement

08/02/2024 07:15

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RNS Number : 3994C  XLMedia PLC  08 February 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part
of UK law by virtue of the European Union (Withdrawal) Act 2018. The
information is disclosed in accordance with the Company's obligations under
Article 17 of the UK MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.

 

8 February 2024

 

XLMedia plc

("XLMedia" or the "Group" or the "Company")

 

FY 23 Trading Update

 

XLMedia (AIM: XLM), a leading global digital media company, provides the
following trading update ahead of the publication of its results for the
twelve months to 31 December 2023 ("FY 23" or the "Period").

 

The Group expects to deliver revenue and Adjusted EBITDA results in line with
market expectations, with FY 23 revenues expected to be c.$50m and FY 23
Adjusted EBITDA*of c.$12m.

 

As at 31 December 2023 the Group had cash at bank of $4.8m. The reduction in
cash in the Period reflects deferred acquisition payments, media partner
minimum guarantee payments and other exceptional costs.

 

During the Period, the Group saw the return to growth of its premium European
assets (Nettikasinot, WhichBingo and Freebets.com), and also made further
progress in replacing legacy technology and implementing further cost
reduction measures.

 

Following a strong start to the year in the US with the launch of online
sports betting in Ohio, there were significant changes in operator customer
acquisition activity including the withdrawal of the Barstool Sportsbook
betting brand, and the launch of ESPN BET in mid-November. Following the
substantial spike in revenues in early 2022 driven by the launch of online
sports betting in New York, revenues in FY 23 reflect the reduced scale of
state launches in the period.

 

Current Trading and Outlook

 

2024 will see the launch of online sport betting in the state of North
Carolina in mid March. North Carolina is expected to be a material market for
sports betting, and XLMedia remains well placed for the launch with both owned
and media partner brands. Further state launches are not currently planned
during 2024, but following the US election and into 2025 we expect to see an
acceleration in the legalisation of online sports betting in the remaining 20
unregulated US states, with five currently in active ballot initiatives.

 

2024 will be a year of consolidation for XLMedia. XLMedia will continue to
focus on growing its premium European brands and maximising existing
opportunities in the US. The Group will look to deliver additional savings to
right size the business in preparation for further market growth in 2025.

 

 

Notice of Results

 

The Group will report results for FY 23 in early April 2024, at which time
management will provide insight into the Group's performance for 2023 and
plans for 2024. The Company will issue a Notice of Results, including details
of a webcast for shareholders, nearer the time.

 

 

* Adjusted EBITDA is defined as the operating profit after adding back
depreciation, amortisation, impairment, share based payments, exceptional
minimum guarantee cost, restructuring costs and aborted deal related costs.

 

 

For further information, please contact:

 XLMedia plc                                              ir@xlmedia.com

 David King, Chief Executive Officer                      via Vigo Consulting

 www.xlmedia.com (http://www.xlmedia.com)

 Vigo Consulting                                          Tel: 020 7390 0233

 Jeremy Garcia / Fiona Hetherington / Kendall Hill

 www.vigoconsulting.com (http://www.vigoconsulting.com)

 Cavendish Capital Markets Limited (Nomad and Broker)     Tel: 020 7220 0500

 Giles Balleny / Callum Davidson

 www.cavendish.com (http://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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