XLMedia suffers significant revenue decline in FY23 results

Revenue declined in both North America and Europe. 

revenue loss
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XLMedia has released its full-year 2023 results, highlighting a year for the affiliate that showed the impact of certain company sales, with the company, in March, agreeing the sale of its European and Canadian sports betting and gaming assets to Gambling.com.

FY23 revenue declined 29% to $50.3m in 2023, from the $70.9m figure recorded in 2022, with nearly every segment of the business seeing a fall in revenue. 

Looking at its regions, North America saw its revenue decrease 42%, while in Europe it went down 2%. The largest individual drop-off in revenue was experienced for gaming in North America which fell 54% to $0.6m. The only segment where revenue grew was sport in Europe which rose 9% to $9.7m. 

Gross profit also took a significant dip, by 26% specifically, to a total of $26.6m, while statutory loss was valued at $45.5m compared with statutory profit of $3.4m in 2022. 

Adjusted EBITDA was $12.1m during 2023, representing a drop off of 36% when compared to the year prior. 

XLMedia CEO David King said: "Following the announcement of the sale of the Europe Sports and Gaming business on 1 April 2024, 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 Chair Marcus Rich added: "We are delighted to have realised value for shareholders from the sale of the Group's Europe and Canada assets whilst also providing cash to clear legacy liabilities and working capital for the North America business.  

“We anticipate an initial return of capital to shareholders from sale proceeds in quarter four 2024.” 

In other results-based news, the American Gaming Association (AGA) has released its Q1 report, revealing significant growth and its 13th consecutive quarter of expansion. 

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