XLMedia experiences declines for FY2023, North American revenue falls by 42%
The affiliate also reported decreases in adjusted EBITDA and gross profit.
Affiliate XLMedia has reported its end-of-year 2023 financial and business results. The company posted falls in both its North American and overall revenue for the year, having previously sold some of its revenue-generating assets.
Revenue in its North American segment fell significantly during the year, with a decrease of 42% when compared to results from its 2022 end-of-year report. Gaming revenue in North America dropped to $0.6m in 2023, reflecting a decline of 54%. Sports revenue in North America totaled $29.2m for the year.
Total company revenue in 2023 reached $50.3m, falling 23% year-over-year.
XLMedia also reported a 26% decrease in its 2023 gross profit, reporting $26.6m for the year.
Adjusted EBITDA reached $12.1m in 2023, falling by 36% when compared to results from last year.
The company recently signed a binding agreement to sell its gaming and sports betting assets in Canada and Europe to Gambling.com Group.
Per the terms of the deal, the total consideration for the sale is “up to $42.5m, including a fixed sum of $37.5m plus a potential earnout of up to $5m.”
CEO David King briefly discussed the upcoming sale by saying, “Following the announcement of the sale of the Europe Sports and Gaming business on 1 April 2024, we are focused on driving organic revenues in the North America market, while continuing both to expand our footprint in preparation for new state launches when they happen, while also right sizing the group’s cost base for 2025.”
XLMedia noted that it plans to use the money from the sale to cover its final deferred US acquisition payment, settle tax provisions that are outstanding and cover asset transition costs. The company will also use the proceeds to support is North American business by providing working capital and returning cash to company shareholders.
Company Chair Marcus Rich said, “We are delighted to have realized value for shareholders from the sale of the Group’s Europe and Canada assets whilst also providing cash to clear legacy liabilities and working capital for the North America business.
“We anticipate an initial return of capital to shareholders from sale proceeds in quarter four 2024.”
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