REG - XLMedia PLC - AGM Trading Statement

XLMediaAnnouncement

28/06/2024 07:00

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RNS Number : 2425U  XLMedia PLC  28 June 2024

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014. Upon the publication of this announcement, this
information is now considered to be in the public domain.

 

 

28 June 2024

 

 

XLMedia PLC

("XLMedia" or the "Group" or the "Company" or the "Business")

 

AGM Trading Statement

 

XLMedia (AIM: XLM), a sports and gaming digital media company, will be holding
its Annual General Meeting at 9.30 a.m. this morning. David King, Chief
Executive Officer of XLMedia plc, will provide the following statement on
trading at today's meeting:

 

"The Group saw a solid start to the year in Europe and North
America. North Carolina launched online sports betting on 11 March 2024,
after the NFL season had finished, which saw good growth in customer
registrations and offers the prospect of further revenues when the new NFL
season launches in September.

 

On 21 March 2024, the Group announced the divestment of
its Europe and Canada assets for a fixed sum of $37.5 million and a
potential earnout of up to $5.0 million to Gambling.com Group Limited (GAMB).
We anticipate an initial return of capital to shareholders from the net sale
proceeds in Q4 2024, further details of which will be announced in due course.
The Group continues to provide transition support for the agreed six month
period to GAMB.

 

Following the sale of the Europe Sports and Gaming business, Adjusted EBITDA
from continuing operations is expected to be approximately $5.0 million for
FY 2024.

 

With no further state launches confirmed, the Group is 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.

 

Growing the Media Partner business remains a key element of our strategy and
the Group continue to seek partners in preparation for new state launches as
we further expand our partner footprint. Following the May 2024 Google update,
the Group is working closely with all its Media Partners, the majority of
which, to date, have been unaffected by the changes. The Group continues to
focus on its Owned and Operated websites which have seen some improvements in
rankings.

 

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.

 

There are still another 20 states yet to legalise online sports betting,
including California and Texas, the two most populous states and 43 states
yet to legalise online casino gaming.

 

We would like to thank our shareholders for their support, and look forward to
updating shareholders on our progress going forward."

 

 

For further information, please contact:

 XLMedia plc                                              ir@xlmedia.com

 David King, Chief Executive Officer                      via Vigo Consulting

 www.xlmedia.com (http://www.xlmedia.com)

 Vigo Consulting                                          Tel: 020 7390 0233

 Jeremy Garcia / Fiona Hetherington / Kendall Hill

 www.vigoconsulting.com (http://www.vigoconsulting.com)

 Cavendish Capital Markets Limited (Nomad and Broker)     Tel: 020 7220 0500

 Giles Balleny / Callum Davidson (Corporate Finance)

 Charlie Combe (Corporate Broking)

 www.cavendish.com (http://www.cavendish.com)

 

About XLMedia

 

XLMedia (AIM: XLM) is a sports and gaming digital media company that creates
compelling content for highly engaged audiences and connects them to relevant
advertisers.

 

The Group manages a portfolio of premium brands in regulated markets which are
designed to reach passionate people with the right content at the right time.

 

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