Even the top end of these expectations would see a 27.6% revenue decline and 16.2% decline in adjusted EBITDA from 2022.
XLMedia said the fall in outlook resulted from a “reduced level of customer acquisition marketing activity.”
In particular, the company said the withdrawal of the Barstool Sportsbook brand from the market, previously a major XLMedia partner, led to a “significant change” in its North American revenue profile.
“The second half of the year has seen revenues earned in previous years from August through October, in part moving back to mid-November onwards,” said XLMedia.
However, the company highlighted the launch of ESPN Bet as generating an anticipated uplift in revenue. As such, it added that it expects to see a strong close to the year in North America.
XLMedia said it is “unlikely,” however, to fully compensate for the shortfall now that December acquisition budgets have been confirmed.
Subsequently, it expects North American revenue overall to fall below previous forecasts.
On the European front, the said its brands Nettikasinot, Whichbingo and Freebets are “on track” to generate strong year-on-year growth on a full-year basis.“The group expects to see continued progress from its European brands in 2024, while continuing to build its North American owned and operated brand and media partner footprint,” said the business.
XLMedia plans to continue asset sales
XLMedia has also made commitments to continue the sale of its assets, although ruled out any transaction involving the whole company for the moment.
In July, it announced the sale of three of its iGaming sites for $4m, representing 4.7x their combined yearly revenue.
This was the second sale in as many months, after the company disposed of its loss-making personal finance assets for $1.3m in June.
Now, the board is exploring the opportunity to create shareholder value through further asset sales. As part of this initiative the company has engaged in “early discussions” with potential buyers.
In of selling the entire company, the company said that despite talks with prospective buyers, it has ruled out this possibility for now.
“It is clear that while there is demand for the assets, given the current share price, a sale of the whole company is unlikely to create the most value for shareholders and no current discussions are ongoing in relation to this,” said the .
“The board therefore does not plan to undertake the sale of the whole company at this time.”
The combination of a reduced earnings profile and a ruled out acquisition led to the business’ share price falling 13.7% since the market opened today.
