Xlmedia Regulatory News (XLM)

27 July 2022

XLMedia PLC

("XLMedia" or the "Group" or the "Company")

Trading Update

&

Notice of Results

XLMedia (AIM: XLM), a leading global digital performance publisher, connecting advertisers with consumers, today provides the following trading update for the six months ended 30 June 2022.

Financial update

The Group expects H1 2022 revenue of approximately US$44.5 million (H1 2021: US$32.2 million) and Adjusted EBITDA of approximately US$10.5 million (H1 2021: US$6.6 million).

The Company has traded well across the first six months of the current financial year, buoyed by its newest vertical, US Sports, which produced a strong performance in the period and accounted for 68% of the Group's revenue, US$30.2 million.

Trading for the current financial year is performing in line with expectations.

Sports

The Group's Sports vertical delivered strong growth during the period, generating revenue of US$34.0 million (H1 2021: US$11.7 million), up 191%.

The North American sports business is underpinned by the Groups strategic acquisitions* enabling XLMedia to provide exclusive relevant local content through the national footprint of Sports Betting Dime and Saturday Football Inc businesses.

The opening of new regulated markets and the signing of new media partnership agreements has allowed the US Sports business to capitalise on the full US sports calendar, in particular the Super Bowl, and deliver strong growth in H1 2022, with revenues of US$30.2 million in the period (H1 2021: US$5.9 million).

There are currently 21 states in the US and one in Canada that permit online sports betting. Ohio, the seventh largest US state in terms of population, is expected to permit sports betting in January 2023.

The Group's European Sports vertical delivered a solid performance in H1 2022, with revenues of US$3.8 million.

Gaming

XLMedia's recently restructured casino and bingo vertical is trading in line with targets, generating revenue of US$8.4 million (H1 2021: US$12.5 million).

Gaming revenues are expected to continue to trade below historic levels, in line with expectations, although the business is now showing signs of stabilising, having suffered from a year-on-year decline in tail revenue. The business has reduced its cost base to reflect this reduction in the scale of its activities and continues to be a cash generator for the Group.

Personal Finance

The Group's Personal Finance vertical delivered revenues of US$0.8 million (H1 2021: US$6.6 million) and now represents 2% of Group revenue.

The decline results from the need to replace aging technology, re-evaluate marketing tactics and align with best practice. The management and production teams are now based within the Group's US division, and the Personal Finance vertical is focussed on completing the redesign and re-platforming of its primary websites, with the objective of improving site performance and enhancing the consumer experience and stabilising revenues.

Cash

The Group's acquisition program was part funded through an equity raise in March 2021, with future acquisition payments and earn out elements of the consideration largely funded from the Group's free cashflow. The Group expects to make deferred consideration payments of approximately US$7.7 million in H2 2022.

Cash balances at the end of June 2022 were approximately US$17.7 million (H1 2021: US$36.9 million).

Operations and infrastructure

H1 2022 saw the appointments of XLMedia's new Chair and CFO, and on 1 July, the appointment of its new CEO.

XLMedia's new organisational design, as outlined in the Group's FY 2021 results, was largely completed in H1 2022 and is expected to generate annualised cost savings of US$5-6 million.

Central to this program has been a fundamental rationalisation of the Group's online portfolio, in particular Casino which has been reduced from over 3,000 sites to some c.45 sites, enabling the commencement of an upgraded site infrastructure and the development of shared working practices while supporting the provision of targeted content.

Notice of H1 Results

XLMedia expects to report results for the six months ending 30 June 2022, in the week commencing 26 September 2022.

The Company will hold a webcast for shareholders and will provide details of the facility nearer the time.

* XLMedia acquired CBWG in December 2020, Sports Betting Dime in March 2021, and Saturday Football Inc in September 2021. 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information, please contact:

www.berenberg.com

About XLMedia:

XLMedia (AIM:XLM) is a global digital performance publisher. connecting advertisers with consumers, operating across sports, gaming and personal finance.

The Group manages a portfolio of premium brands that cover a range of attractive geographies with a primary emphasis on regulated markets. The XLMedia portfolio is designed to reach targeted audiences with the desire to engage and take action.