XLMedia suggests FY 2023 targets to be met with 2024 to be a consolidator year
Affiliate expects revenue to reach $50m as firm prepares for launch of sports betting in North Carolina but expects minimal sports betting launches in rest of US until 2025
XLMedia has announced it expects to meet its financial targets for full-year (FY) 2023 following growth in its European assets and steady revenue streams from the US.
In a brief trading update released ahead of a full breakdown of the group’s 2023 performance, the affiliate said it is expecting FY 2023 revenue to reach c.$50m (£39.6m) while adjusted EBITDA will reach c.$12m.
During 2023, the group saw its premium European assets, which include WhichBingo, Nettikasinot and Freebet.com, return to growth.
The AIM-listed firm added further progress had been made in replacing legacy technology and the implementation of further cost-cutting measures.
Elsewhere, the affiliate highlighted a strong start to the year in the US due to the launch of legal online sports betting in Ohio on 1 January 2023.
However, the business noted changes in customer acquisition activity due to the withdrawal of the Barstool Sportsbook and the launch of ESPN Bet in mid-November by PENN Entertainment.
XLMedia also said it expects US revenue to be at a lower level than 2022 due to the reduced scale of state launches throughout the year. As of 31 December 2023, XLMedia holds $4.8m in cash. The firm said the reason for this reduction in cash is due to deferred acquisition payments, media partner minimum guarantee payments and other costs.
The business will report its complete FY 2023 results in early April.
XLMedia also gave some insight into its plans for the upcoming year as the firm gears up for the launch of online sports betting in North Carolina, which is pencilled for 11 March.
The company said it was well placed for this date with both owned and media partner brands.
Away from North Carolina, XLMedia said it was not expecting many sports betting state launches throughout 2024, however this should shift the following year.
XLMedia is expecting 2025 to see an acceleration in the legalisation of online sports betting in the 20 unregulated US states, with five states currently in active ballot initiatives.
Finally, the affiliate also said it will continue to try to cut costs to prepare for future growth in 2025.