XLMedia has said that revenue and EBITDA adjusted will be likely at the lower range of expectations set in December. The two were expected to fall year-on-year because of shortfalls in North America.
XLMedia has released another update that shows revenue in 2023 is expected to be around $50.0m. (PS39.6m). This represents a 32.2% decrease from last year. In December, the group forecasted between $50.0m to $52.0m.
The adjusted EBITDA should be $12.0m. This is a decrease of 28.1% compared to 2022. It is at the lower range of guidance for December, which was $12.0m to $14m.
News in America is mixed
XLMedia explains that its performance was impacted in detail by a number of major events.
It first notes that premium European assets such as Nettikasinot and WhichBingo are growing again. It also claims to have made progress with replacing outdated technology and cost-reduction measures.
However, after a successful start of the year for the US with the launch in Ohio of the online sports betting, the operator’s performance was affected by significant changes to its customer acquisition activities.
One of these events was the launch of ESPN Bet after the Barstool Sportsbook brand had been withdrawn. XLMedia noted that revenue grew significantly in 2022, after New York introduced online sports betting. Revenue in 2023 reflected the smaller scale of launches by the states during the time period.
Prepare for Growth in 2025
XLMedia has a few highlights in its 2024 plans. This includes the expected launch of North Carolina’s online sports betting by mid-March.
XLMedia stated that North Carolina was expected to become a significant market for sports gambling. We are well positioned for launch, with our own brands and those of media partners.
XLMedia anticipates that the pace of legalising online sports betting will accelerate in states following the elections later in this year, even though no further launches in 2024 are planned. Some 20 states still lack a legal gambling market. Some are currently undergoing ballot initiatives.
XLMedia has stated that 2024 is a year for consolidation, focusing on its US and European businesses.
“XLMedia continues to concentrate on the growth of its European premium brands, and maximising opportunities that exist in the US,” XLMedia stated. The group is looking to make additional savings in order to properly size its business to prepare for future market growth.
Ackroyd leaves XLMedia as Chief Financial Officer
This update follows XLMedia’s announcement last month that Caroline Ackroyd would be stepping down from her position as Chief Financial Officer.
Ackroyd is leaving the company on March 31. She will be leaving her position as the CFO at XLMedia in order to accept a job with a gambling operator.
Ackroyd is the CFO for affiliate company since March 2022. Ackroyd was named to the post in November 2021, but she did not start the job until several months later.
