TIDMXLM
RNS Number : 8405T
XLMedia PLC
27 July 2022
27 July 2022
XLMedia PLC
("XLMedia" or the "Group" or the "Company")
Trading Update
&
Notice of Results
XLMedia (AIM: XLM), a leading global digital performance
publisher, connecting advertisers with consumers , today provides
the following trading update for the six months ended 30 June
2022.
Financial update
The Group expects H1 2022 revenue of approximately US$44.5
million (H1 2021: US$32.2 million) and Adjusted EBITDA of
approximately US$10.5 million (H1 2021: US$6.6 million).
The Company has traded well across the first six months of the
current financial year, buoyed by its newest vertical, US Sports,
which produced a strong performance in the period and accounted for
68% of the Group's revenue, US$30.2 million.
Trading for the current financial year is performing in line
with expectations.
Sports
The Group's Sports vertical delivered strong growth during the
period, generating revenue of US$34.0 million (H1 2021: US$11.7
million), up 191%.
The North American sports business is underpinned by the Groups
strategic acquisitions* enabling XLMedia to provide exclusive
relevant local content through the national footprint of Sports
Betting Dime and Saturday Football Inc businesses.
The opening of new regulated markets and the signing of new
media partnership agreements has allowed the US Sports business to
capitalise on the full US sports calendar, in particular the Super
Bowl, and deliver strong growth in H1 2022, with revenues of US$
30.2 million in the period (H1 2021: US$5.9 million).
There are currently 21 states in the US and one in Canada that
permit online sports betting. Ohio, the seventh largest US state in
terms of population, is expected to permit sports betting in
January 2023.
The Group's European Sports vertical delivered a solid
performance in H1 2022, with revenues of US$3.8 million.
Gaming
XLMedia's recently restructured casino and bingo vertical is
trading in line with targets, generating revenue of US$8.4 million
(H1 2021: US$12.5 million).
Gaming revenues are expected to continue to trade below historic
levels, in line with expectations, although the business is now
showing signs of stabilising, having suffered from a year-on-year
decline in tail revenue. The business has reduced its cost base to
reflect this reduction in the scale of its activities and continues
to be a cash generator for the Group.
Personal Finance
The Group's Personal Finance vertical delivered revenues of
US$0.8 million (H1 2021: US$6.6 million) and now represents 2% of
Group revenue.
The decline results from the need to replace aging technology,
re-evaluate marketing tactics and align with best practice. The
management and production teams are now based within the Group's US
division, and the Personal Finance vertical is focussed on
completing the redesign and re-platforming of its primary websites,
with the objective of improving site performance and enhancing the
consumer experience and stabilising revenues.
Cash
The Group's acquisition program was part funded through an
equity raise in March 2021, with future acquisition payments and
earn out elements of the consideration largely funded from the
Group's free cashflow. The Group expects to make deferred
consideration payments of approximately US$7.7 million in H2
2022.
Cash balances at the end of June 2022 were approximately US$17.7
million (H1 2021: US$36.9 million).
Operations and infrastructure
H1 2022 saw the appointments of XLMedia's new Chair and CFO, and
on 1 July, the appointment of its new CEO.
XLMedia's new organisational design, as outlined in the Group's
FY 2021 results, was largely completed in H1 2022 and is expected
to generate annualised cost savings of US$ 5-6 million.
Central to this program has been a fundamental rationalisation
of the Group's online portfolio, in particular Casino which has
been reduced from over 3,000 sites to some c.45 sites, enabling the
commencement of an upgraded site infrastructure and the development
of shared working practices while supporting the provision of
targeted content.
Notice of H1 Results
XLMedia expects to report results for the six months ending 30
June 2022, in the week commencing 26 September 2022.
The Company will hold a webcast for shareholders and will
provide details of the facility nearer the time.
* XLMedia acquired CBWG in December 2020, Sports Betting Dime in
March 2021, and Saturday Football Inc in September 2021.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain .
For further information, please contact:
XLMedia plc ir@xlmedia.com
David King, Chief Executive Officer via Vigo Consulting
Caroline Ackroyd, 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
About XLMedia:
XLMedia (AIM:XLM) is a global digital performance publisher.
connecting advertisers with consumers, operating across sports,
gaming and personal finance.
The Group manages a portfolio of premium brands that cover a
range of attractive geographies with a primary emphasis on
regulated markets. The XLMedia portfolio is designed to reach
targeted audiences with the desire to engage and take action.
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END
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