Financial details
In 2022, the three websites together generated revenue of $840,000 and gross profit of around $750,000.
The sale therefore prices the assets at a 4.7x revenue multiple.
Previous earnings from all three brands represents around 6% of the group’s European casino revenue, which reached $14.3m in 2022.
The group will continue to operate its gaming business in Sweden and other European markets, it said, in which its performance is currently tracking “marginally ahead of management expectations.”
Cash generated from the sale will provide the group with additional working capital and will fund further investment into its expansion in North American sports and iGaming markets, as well as advancing XLMedia’s EU portfolio, it said.“The board is pleased to be able to realise further substantial value from the sale, having recently also completed the sale of the loss-making Personal Finance business for $2.05m,” XLMedia concluded.
North America focus
A recent restructure of XLMedia’s business has seen the turn its core focus away from European iGaming markets and towards US sports betting.
In 2022, the group’s North American revenue totalled $47.7m. That represented a year-on-year growth rate of almost 115%, and made up around 65% of total group revenue.
The business holds a number of significant media partnerships in the US, including with global publishing brand Advance Local, one of the largest media groups in the US which boasts a localised presence across several states.
In May, the firm also extended an exclusive sports betting and iGaming partnership with Schneps Media, owner of local New York news website amNY.com.
