XLMedia forecasts FY revenue growth amid sports betting expansion

In a trading update, XLMedia said that revenue is forecast to reach approximately $73.7m (£59.7m/€68.0m) for the 12 months to 31 December, up from $66.5m in the previous year and in line with expectations.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to amount to between $16.1m and $16.6m for the year.

Breaking down its performance, XLMedia said revenue from sports and gaming should hit $69.6m, which would be 27.5% higher than in 2021, with adjusted EBITDA from these core activities amounting to between $17.5m and $18.0m.

The group said its sports vertical experienced a strong performance in 2022, with revenue to amount to approximately $54.0m, which would be 72.0% up on the previous year. This was driven by the launch of legal online sports betting in New York early in 2022 as well as in Maryland later in this year, with XLMedia active in both states.

Shortly after the end of the financial year, XLMedia also rolled out its affiliate offering in Ohio to coincide with the market’s opening on 1 January, while plans are also in place to go live in Massachusetts when legal online sports betting launches in March.

Casino decline

Turning to casino and gaming, and revenue here is expected to decline by 32.8% to $15.6m. XLMedia said it progressed the rebuilding of its casino sites in 2022, delivering increasing audience, growing new depositing customers, and building new tail revenue from its revenue share deals. 

However, as previously forecast, XLMedia old tail revenue will decline further in the year, although overall total revenue stabilised in the second half of the year.

In terms of non-core revenue, this is likely to reach $4.1m for 2021, which would be 65.3% lower than the previous year. This included $1.9m in revenue from the personal finance division, of which XLMedia last month said it was exploring a potential sale.

XLMedia said the sales process remains ongoing and further announcements on progress will be made as and when appropriate.