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XLMedia has reported a “solid start to the year” but is now focusing on optimising its existing operations as there are no confirmed further US state online gambling launches.

At the company’s AGM, CEO David King said that due to the launch of online sports betting in North Carolina on 11 March, the business saw “good growth in customer registrations” despite the fact that the NFL season had already finished.

This, King believes, “offers the prospect of further revenues when the new NFL season launches in September.”

The affiliate’s shares saw a slight uptick of nearly 4% following the announcement, with investors clearly awaiting good news after the business reported a 29% year-on-year revenue decrease to $50.3m and a 36% decline in adjusted EBITDA to $12.1m for full-year 2023.

Capital return

In a strategic move to streamline operations, XLMedia recently divested its Europe and Canada assets to Gambling.com Group for a fixed sum of $37.5m, with a potential earn-out of up to $5m.

King confirmed plans for an initial return of capital to shareholders from the sale proceeds in Q4 2024.

Despite the seasonal downturn in sports revenues during the North American off-season, XLMedia remains focused on expanding its media partner business and preparing for potential new state launches.

“This includes daily fantasy sports, advertising and sponsorship, as well as new customer acquisition,” King said.  

Organic revenue growth

The company said it continues to collaborate closely with its media partners following the May 2024 Google update, which, unlike for many of its competitors, has largely left its operations unaffected.

Looking ahead, XLMedia aims to strengthen its organic revenue growth in the North American market while prioritising cost efficiency.

King highlighted ongoing regulatory opportunities in the US, with approximately 20 states yet to legalise online sports betting, including populous states such as California and Texas.

Additionally, 43 states have yet to legalise online casino gaming, presenting further growth prospects, the CEO added.

The business reiterated its previous guidance of $5m in adjusted EBITDA for full-year 2024 following the sale of its assets to Gambling.com Group.

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