XLMedia Shifts Focus to North American iGaming Market

01.07.2024

XLMedia, the London AIM-listed media group, has announced a shift in its business strategy, focusing primarily on the North American iGaming market. This move comes as part of a larger reorganization effort, which includes the sale of its European and Canadian assets to Gambling.com Group for $38 million, with an additional $5 million potential earnout.

Financial Outlook

Despite the divestment of its European and Canadian operations, XLMedia projects an adjusted EBITDA of approximately $5 million for FY 2024 from continuing operations. The company plans to return capital to shareholders from the sale proceeds, with initial returns expected in Q4 2024.

CEO David King emphasized the company’s focus on optimizing operations in existing legalized sports betting states and preparing for the upcoming NFL season. This strategy encompasses daily fantasy sports, advertising, sponsorship, and new customer acquisition efforts.

Challenges and Opportunities

XLMedia acknowledges recent challenges, including a $57 million loss in FY2023 due to asset write-downs and reorganization costs. However, the company sees significant growth potential in the 20 states yet to legalize online sports betting and 43 states without legalized online casino gaming.

The company is actively addressing the impact of recent Google algorithm changes on SEO rankings. XLMedia reports that the majority of its media partnerships remain unaffected and notes improvements in rankings for its owned and operated websites.

Moving forward, XLMedia aims to drive organic revenue growth in North America while optimizing its cost structure. The company intends to enter 2025 with an infrastructure aligned with the needs of its North American business, setting the stage for sustainable growth in the evolving iGaming landscape.