XLMedia confirmed in its H1 2024 earnings call that the company’s transition to a primarily North American-focused media network is close to completion.
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.
The divested assets include Freebets.com, WhichBingo.co.uk, Nettikasinot.com and Vedonlyonti.com, as well as other smaller European and Canadian assets.
As a result of the divestment, XLMedia’s H1 financial results are now focused solely on its North American performance, with little residual revenue from its remaining legacy network assets.
XLMedia generated $10.4 million from “continuing business” in the period (compared to $16.9 million in H1 2023), while the impact of closed assets was $5.2 million.
North American assets, in line with management’s expectations, generated $9.8 million, down 40% year-on-year (H1 2023: $16.2 million). The decline is expected due to the company’s restructuring and corporate adjustments.
The company attributed the decline in North American revenue to the positive impact of the launch of online sports betting in Ohio and Massachusetts in January and March 2023, respectively.
Having received an initial payment of $20 million and expecting another $10 million in October 2024, XLMedia reported a stronger cash balance. Cash at the end of June was $19.4 million after paying $3.5 million as the final payment for the CBWG acquisition in 2020.
The company expects adjusted EBITDA for the continuing business to be approximately $5 million in 2024. It expects to benefit from four months of the NFL season beginning in September and to reduce centralized costs associated with the continuing business in the H2of the year.
XLMedia plans to return capital to shareholders from the net proceeds of the sale in the Q4 of 2024, with additional details to be provided “in due course.”
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