28th Jun 2024 11:29
(Alliance News) - XLMedia PLC on Friday said it would now focus on optimising existing legalised sports betting states, following a "solid start" to the year in Europe and North America.
According to the London-based global digital media company, the launch of online sports betting in North Carolina earlier this year, after the NFL season finished, prompted customer registration growth. The firm expects further revenue as a result when the next NFL season starts in September.
Looking ahead, XLMedia is also expecting an initial return from the net sale proceeds of its Europe and Canada disposal in March.
The firm had divested its assets in Europe and Canada for a fixed sum of USD37.5 million, as well as a potential earnout of up to USD5.0 million, to Gambling.com Group Ltd. It expects returns in the fourth quarter of this year.
Accordingly, adjusted annual earnings before interest and tax from continuing operations are expected to be USD5.0 million.
With no further state launches confirmed, XLMedia is now focused on optimising existing legalised sports betting states, monetising its audiences and preparing the portfolio to maximise revenues from the new NFL season.
This includes daily fantasy sports, advertising and sponsorship, as well as new customer acquisition. The North America business is now in the off season and will see the normal seasonal dip in sports revenues.
"Going forward, we will retain our focus on driving organic revenues in the North America market while continuing to prioritise rightsizing the group's remaining cost base, allowing it to enter 2025 with an infrastructure commensurate with the requirements of our North America business," said Chief Executive Officer David King.
Shares in XLMedia were trading 3.7% higher at 9.95 pence each in London on Friday morning.
By Holly Beveridge, Alliance News senior reporter
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