XLMedia confirms aborted discussions over sale of whole business as focus shifts to asset divestment
London-listed affiliate blames low share price as core reason for not sanctioning total sale of company to potential suitors
XLMedia has held discussions in recent months with potential acquirors over the sale of the whole company.
The London-listed affiliate provided a brief trading update this morning, 15 December, in which it detailed its ongoing strategy relating to M&A.
While XLMedia confirmed meaningful discussions over a potential sale of the whole company had taken place recently, the firm said that given the group’s current share price, a sale would not create the maximum value for shareholders.
At the time of writing, XLMedia’s share price sits at 6.12p, down more than 60% from 1 January.
As a result, XLMedia clarified that no discussions relating to the sale of the company were being held currently.
However, the affiliate did note it is looking to explore opportunities for shareholders via the sale of various individual assets.
Likewise, early discussions in that regard have been held with potential purchasers, although there is no certainty these deals will come to fruition.
In July, XLMedia offloaded three European casino assets, focusing on Sweden, Greece and Portugal, to Beach Services for $4m.
Elsewhere, XLMedia said the launch of ESPN BET in the US has given the group an “anticipated uplift in revenues” and that the firm “expects to deliver a strong close to the year in North America”.
The affiliate did highlight, however, that the launch of ESPN BET would be unlikely to fully compensate for the shortfalls throughout 2023, leaving North American full-year 2023 revenue below previous guidance.
At a group level, full-year revenue is expected to land between $50m and $52m, with EBITDA between $12m and $14m.
XLMedia said: “The group expects to see continued progress from its European brands in 2024, while continuing to build its North American owned and operated brand and media partner footprint.”