(Alliance News) - XLMedia PLC on Tuesday said it expects revenue growth in 2021 but added that there are "trading pressures" in its European Casino assets, as well as "negative regulatory change" in its Finnish Casino arm.
Shares in XLMedia were down 11% at 34.70 pence on Tuesday morning in London.
The marketing firm, operating in online gaming, personal finance and sports expects revenue of USD66.6 million in 2021. The company said this in line with expectations and up 22% from USD54.8 million in 2020.
Adjusted earnings before interest, tax, depreciation and amortisation is expected to be USD17.2 million, up 41% from USD12.2 million the previous year.
The company said its Sports vertical performed well during 2021, with revenue of USD25.2 million, more than double its 2020 revenue figure of USD11.3 million. XLMedia said the performance was bolstered by two US sports acquisitions and a number of publishing partnerships.
Personal Finance generated revenue of USD8.8 million last year, up 4.7% from USD8.4 million the previous year. XLMedia said that it expects 2022 revenue in the segment to be less than in 2021, with trading continuing to be challenging after what it described as a "state of transition" in the second half of 2021.
The group's European Casino assets generated revenue of USD23.2 million last year. This represented a 27% decrease from revenue of USD31.7 million in 2020. XLMedia explained that the European casino assets will continue to face trading pressures as tail revenue declines further.
The company said its Finnish Casino assets are facing regulatory changes that will significantly damage revenue performance in the coming year.
XLMedia said there had been continued progress in rationalising and reorganising the company to further capitalise on the North American market and to materially reduce risk from legacy areas of the business.
It said that this initiative was well advanced and that the additional costs are to be incurred until mid-2022, as expected.
"Whilst the group expects the US Sports vertical to deliver strong growth in 2022, this will be, in part, offset by the managed decline of the European Casino vertical and restructuring of the Personal Finance vertical," XLMedia explained.
The company will publish its 2021 results in March.
By Heather Rydings; heatherrydings@alliancenews.com
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