XLMedia would consider “serious offer” for US business
Affiliate’s chair confirms board’s duty is to realize maximum shareholder value in comments following full-year 2023 results publication
XLMedia has confirmed it would explore the sale of its US assets despite the region representing the affiliate’s core focus moving ahead.
Marcus Rich, XLMedia chair, revealed on an analyst call this morning, May 17, that the business would engage in conversation should any “serious offer” for the assets emerge.
Rich’s comments came after the London-listed firm finally reported its full-year 2023 earnings, which saw revenue slip 29% year on year (YOY) to $50.3m.
Adjusted EBITDA slumped 36% to $12.1m as management said the opportunity was now in the US after selling its European and Canadian assets to Gambling.com Group earlier this year for an initial $37.5m.
XLMedia is live in 21 US states and has claimed a “solid start” to 2024 thanks to the launch of online sports betting in North Carolina.
In a statement attached the group’s results, XLMedia said: “Following the sale of the Europe assets at the start of April 2024, the group is focussed on right sizing the cost base, allowing it to enter 2025 with an infrastructure commensurate with the requirements of the North America business.”
However, the chairman confirmed the board would explore any potential offer for its operations stateside.
Rich said: “We’ve had interest in the US assets in particular since the announcement [regarding] the European disposal.
“There is an active M&A market in the US as we see consolidation happening. We see further growth in the marketplace with 20 states still to regulate.
“The board’s responsibility is to maximize shareholder value. So, we as a board would have to consider any serious offer for the American business and benchmark that against what the ongoing P&L looks like for business in the US moving forwards,” he added.
North America accounted for 55% of group revenue last year, with sports returning $26.9m in revenue and gaming just $600,000.
XLMedia’s operations in the US are dominated by CPA deals, while this year the group has penned media partnership deals with Minnesota’s Star Tribune and Nola.com in Louisiana.