XLMedia released financial results for the six months ended June 30, 2024, which took into account the sale of its assets in Europe and Canada.
Earlier this year, XLMedia announced the sale of its sports betting and gaming assets to Gambling.com for a fixed consideration of $37.5 million, with potential revenue of up to an additional $5 million based on revenue performance.
The associate reported total group revenue of $15.6 million, of which $5.2 million came from discontinued operations and $10.4 million from continuing operations, both in line with management expectations.
However, revenue in North America was down 39.5% compared to the same period last year, but XLMedia said this was due to the launch of online sports betting in Ohio during the NFL season in January 2023 and in Massachusetts in March 2023. A similar service was launched after the season.
Adjusted EBITDA from continuing operations is expected to be $5 million for the full year, while the cash balance at the end of June was $19.4 million.
Looking ahead, the company said: "The North American business is seasonal and the company is experiencing the normal seasonal decline in sports revenue during the NFL off-season. With no further confirmed plans for a new state rollout, the group is focused on preparing for the new NFL season. , and optimize performance in existing legal sports and gaming states. The Group continues to diversify revenue through daily fantasy sports, paid media, advertising and sponsorships, while building its gaming business for long-term growth.
Following Google’s action in May 2024 which reduced visibility of sports betting and gaming content for some publishers, the Group is working closely with all of its media partners, most of whom have not been adversely impacted to date by this action, while the Group has successfully re-launched gaming content with the few partners that were temporarily impacted, and the Group’s owned and operated sports affiliate sites are currently benefiting from an improvement in their rankings.”
In other performance-based news, Lottomatica Group published its first half 2024 results, showing continued growth and market share gains.
