(Sharecast News) - Digital media company XLMedia warned on Friday that revenues will now fall below previous forecasts.
XLMedia previously noted that it had seen "a reduced level" of customer acquisition marketing activity by some operators. In particular, the withdrawal of the Barstool brand from the market and the subsequent launch of ESPNbet resulted in "a significant change" in the revenue profile of its North American activities.
Revenues for the full year were now expected to be in the range of $50.0-52.0m, while adjusted underlying earnings were expected to be in the range of $12.0m-14.0m.
XLMedia added that following the launch of ESPNbet in mid-November, it has benefited from an anticipated uplift in revenues and expects to deliver "a strong close to the year" in North America.
However, while there was still opportunity to generate "significant revenues" in the remainder of the year, it was now "unlikely" that this will fully compensate for mid-period shortfalls and, consequently, North American revenues will now fall below previous forecasts.
As of 1135 GMT, XLMedia shares were down 6.25% at 6.90p.
Reporting by Iain Gilbert at Sharecast.com
Xlmedia (XLM)