XLMedia has stated that its revenue and adjusted EBITDA are likely to fall towards the lower end of the ranges outlined in December, with both expected to decline year-on-year due to shortcomings in North America.
Providing further updates, XLMedia anticipates its revenue for 2023 to be around $50.0 million (£39.6 million), marking a 32.2% decrease from the previous year.
The company had previously forecasted revenue to range between $50.0 million and $52.0 million.
Regarding adjusted EBITDA, it is projected to reach $12.0 million, representing a 28.1% decrease from 2022. This aligns with the lower end of December’s guidance range of $12.0 million to $14.0 million.
Delving into its 2023 performance, XLMedia acknowledges being affected by several significant developments.
The return to growth of premium European assets such as Nettikasinot, WhichBingo, and Freebets.com is highlighted.
The company also reports progress in replacing legacy technology and implementing additional cost reduction measures.
However, despite a robust start to the year in the US, including the launch of online sports betting in Ohio, substantial shifts in operator customer acquisition activity negatively impacted its performance.
This included the withdrawal of the Barstool Sportsbook betting brand and subsequent launch of ESPN Bet.
Additionally, the company noted a significant revenue spike in early 2022 following the launch of online sports betting in New York, with 2023 revenue reflecting the reduced scale of state launches during the period.
Looking ahead to 2024, XLMedia identifies several key highlights, notably the anticipated launch of online sports betting in North Carolina in mid-March.
XLMedia views North Carolina as a significant market for sports betting and asserts readiness for the launch with both owned and media partner brands.
While no further state launches are currently planned for 2024, XLMedia anticipates an uptick in the legalisation of online sports betting in other states following the upcoming election.
With approximately 20 states still lacking a legal betting market, some are currently engaged in active ballot initiatives.
Therefore, XLMedia foresees 2024 as a year of consolidation, with a focus on its US and European operations.
The company aims to grow its premium European brands while capitalising on existing opportunities in the US.
Efforts will also be directed towards delivering additional savings to optimise the business for further market growth in 2025.
This update follows XLMedia’s recent announcement of Caroline Ackroyd’s resignation from her role as chief financial officer, effective 31st March.
Ackroyd, who has served as CFO since March 2022, will be transitioning to a position with a gambling sector operator, having been appointed to the role in November 2021.