XLMedia PLC Trading Update (2327A)

TIDMXLM

RNS Number : 2327A

XLMedia PLC

01 February 2022

1(st) February 2022

XLMedia PLC

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

Trading Update

XLMedia (AIM: XLM), a leading global digital performance publisher, today provides the following trading update for the year ended 31 December 2021.

The Group expects its full year results for the year ended 31 December 2021 to be in line with expectations, delivering revenue of approximately US$66.6 million (2020: US$54.8 million) and adjusted EBITDA[1] of approximately US$17.2 million (2020: US$12.2 million). Cash balances (including short and long-term deposits) at FY 2021 are expected to be c.US$24.7 million (FY 2020: US$15.4 million).

The Company's Sports vertical performed well during the year, with revenue of approximately US$25.2 million (2020: US$11.3 million), buoyed by two US sports acquisitions and a number of publishing partnerships. The Group now has North American coverage across 15 states, with an increasing market opportunity as more states legalise online sports betting.

Personal Finance generated revenues of approximately US $8.8 million (2020: US$8.4 million). H2 2021 continued to be in a state of transition and FY 2022 revenue is expected to be less than FY 2021, with trading continuing to be challenging.

The Group's European Casino assets, which generated revenues of approximately US$23.2 million (2020: US$31.7 million), will continue to face trading pressures as tail revenues decline further. Our Finnish Casino assets are facing negative regulatory change which will significantly impact revenue performance in the coming year.

Continued progress has been made rationalising and reorganising the Company to further capitalise on the North American market opportunity and to materially reduce risk from legacy areas of the business. This initiative is well advanced, with additional costs to be incurred until mid 2022 as expected.

Whilst the Group expects the US Sports vertical to deliver strong growth in FY22, this will be, in part, offset by the managed decline of the European Casino vertical and restructuring of the Personal Finance vertical.

Results for the year ended 31 December 2021 will be published in March 2022.

The information contained within this announcement (the "Announcement") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this Announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information, please contact:

 
 XLMedia plc                                      ir@xlmedia.com 
  Stuart Simms, Chief Executive Officer            via Vigo Consulting 
  Rowan Ellis, Interim Chief Financial Officer 
  www.xlmedia.com 
 Vigo Consulting                                  Tel: 020 7390 0233 
  Jeremy Garcia / Kendall Hill 
  www.vigoconsulting.com 
 Cenkos Securities plc (Nomad and Joint Broker)   Tel: 020 7397 8900 
  Giles Balleny / Max Gould 
  www.cenkos.com 
 Berenberg (Joint Broker)                         Tel: 020 3207 7800 
  Mark Whitmore / Richard Andrews / Jack Botros 
  www.berenberg.com

Notes:

XLMedia is a global digital performance publisher. Operating across a variety of vertical markets including online gambling, personal finance and sports, the Group uses proprietary tools and methodologies to identify and target high value consumers for platform operators.

XLMedia operates branded, content-rich websites, underpinned by intelligent market-leading technology and data, to build stronger and lasting relationships with consumers.

The Group seeks to create a balanced portfolio of premium websites to cover a range of attractive geographies, both stable and high-growth verticals, with greater exposure to regulated markets.

[1] Adjusted EBITDA is defined as EBITDA adjusted for Share Based Payments and Transformation costs.

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