(Alliance News) - XLMedia PLC on Friday said it swung to a loss in 2023, with its bottom line hurt by a decline in revenue and an impairment charge.
The London-based sports and gaming digital media company said in 2023, the company swung to a pretax loss of USD44.9 million from USD5.0 million profit the year prior.
Revenue from continuing operations declined 29% to USD50.3 million from USD70.9 million.
XLMedia reported a USD44.6 million net impairment charge, largely stemming from its US Sports and EU Sports verticals, "reflecting uncertainty over the timing and level of future revenues".
In addition, XLMedia incurred USD2.6 million of reorganisation costs in 2023 relating to the continuation of its restructuring plan.
Looking ahead, the company will continue focusing on expanding is presence in the US market following the legalisation of sports betting in 30 states.
To facilitate this, XLMedia generated cost savings worth USD8.0 million in 2023 and more recently divested its Europe and Canada gaming assets in April.
The sales generated a fixed sum of USD37.5 million, alongside potential earn out of up to USD5.0 million.
Chief Executive Officer David King said: "We are focused on driving organic revenues in the North America market, while continuing both to expand our footprint in preparation for new state launches when they happen, while also right sizing the group's cost base for 2025."
XLMedia shares fell 3.4% to 11.35 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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