XLMedia has stated that it expects full year 2023 revenue and adjusted EBITDA results to be in line with market expectations.
Providing a trading update ahead of its FY23 results being released in early April 2024, XLMedia expects revenue to be around $50m with adjusted EBITDA to be at approximately $12m.
As of December 31, 2023, the group noted it had cash of $4.8m, explaining that the cash reduction in the period was due to “deferred acquisition payments, media partner minimum guarantee payments and other exceptional costs”.
XLMedia highlighted a “return to growth” for its premium European assets – Nettikasinot, WhichBingo and Freebets – while further progress was made in “replacing legacy technology and implementing further cost reduction measures”.
In the US, the year started strong with the launch of online sports betting in Ohio, followed by operator customer acquisition activity changes with the withdrawal of the Barstool Sportsbook and the launch of ESPN BET in mid-November.
The group also noted that FY23 revenue reflects “the reduced scale of state launches” during the year, given that 2022 started strong with the launch of online sports betting in New York.
Looking ahead, XLMedia noted that 2024 will be “a year of consolidation”, as well as growth for its European brands and maximising US opportunities.
Besides online sports betting launching in North Carolina in mid-March, the group stated that no other state launches are expected in 2024, but they expect an “acceleration in the legalisation of online sports betting in the remaining 20 unregulated US states” in 2025.
In addition, the group will look to deliver “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 March 31 to assist with an orderly transition.