XLMedia’s transition into a largely North America-focused igaming media network is almost complete, the company confirmed in its H1 2024 results.
Across the first half of 2024, the media group sold its European and Canadian assets to Gambling.com for $37.5m, rising to a potential $42.5m fee depending on the revenue performance of said assets from April 1, 2024 onwards.
These assets include Freebets.com, WhichBingo.co.uk, Nettikasinot.com and Vedonlyonti.com, alongside “smaller Europe and Canada properties”.
As a result of the sale, XLMedia’s H1 financial results focus solely on its North American performance, with minor residual income from unsold legacy network assets.
XLMedia generated $10.4m from its ‘continued business’ in the period (H1 2023: $16.9m), while group accounts registered an impact of $5.2m from discontinued assets.
Trading “in line with management expectations”, North American assets produced $9.8m, a decrease of 40% compared to the previous year’s figures (H1 2023: $16.2m). This decline does meet management expectations due to the company’s restructuring and corporate adjustments.
The company attributed the North American revenue decline to the positive impact of online sports betting market launches in Ohio and Massachusetts in January and March 2023, respectively.
Having received an initial payment of $20m and expecting a further $10m payment in October 2024, XLMedia highlighted a stronger cash balance. Cash at the end of June stood at $19.4m after a payment of $3.5m for the final instalment of its 2020 CBWG acquisition.
The company outlined that full year 2024 adjusted EBITDA for its continuing business is expected to be around $5m. The firm is hoping to benefit from four months of the NFL season – starting in September – and reductions in the central cost base serving the continuing business in H2.
XLMedia expects to return capital to shareholders from the net sale proceeds in Q4 2024, with further details to be announced “in due course”.
