XLMedia, a leading digital performance publisher, has reported impressive financial results for FY22. The company experienced a significant increase in revenue, reaching approximately $73.7 million, compared to $66.5 million in the previous year. Moreover, their adjusted EBITDA is expected to be in the range of $16.1 million to $16.6 million.
Sports and Gaming Revenue Surge:
XLMedia witnessed a remarkable 27% growth in revenue from their Sports and Gaming segment, which amounted to $69.6 million in 2022, up from $54.6 million in 2021. Adjusted EBITDA from these core activities is estimated to be between $17.5 million and $18.0 million. The company’s Sports vertical played a pivotal role in this success, delivering an outstanding performance. Revenues in the Sports segment soared by 72% year-on-year, reaching $54 million. This surge can be attributed to the legalization of online sports betting in New York and Maryland in January and November 2022, respectively.
Expansion into New Markets:
XLMedia expanded its operations and established a presence in 18 states across North America. The recent addition of Ohio, which went live earlier this month, further strengthened their market coverage. Additionally, XLMedia anticipates Massachusetts to launch online sports betting in March, further boosting their reach. This expansion strategy has been instrumental in capturing new audiences and driving revenue growth.
Casino and Bingo Gaming Performance:
XLMedia’s casino and bingo gaming assets generated revenues of approximately $15.6 million during the reporting period. While not as substantial as the Sports segment, these verticals contribute to the company’s overall revenue diversification strategy.
Cash Balances and Deferred Payments:
XLMedia’s cash balances for FY22 are expected to be approximately $10.8 million, compared to $24.6 million in the previous year. The decrease can be attributed to the payment of $21.4 million in deferred acquisition and earnout payments during 2022. Despite the reduction in cash balances, XLMedia remains financially robust and well-positioned for future growth.
Non-Core Revenues and Strategic Decisions:
Non-core revenues for FY22 amounted to $4.1 million, a decline from $11.8 million in FY21. The Personal Finance segment contributed $1.9 million to these revenues, down from $8.7 million in the previous year. XLMedia recently announced its exploration of a potential sale of all Personal Finance assets, signaling a strategic decision to focus on core activities and streamline operations. The company will provide updates on the progress of this sale as appropriate.
Partnership with Newsweek:
In December 2022, XLMedia entered into a new partnership with Newsweek, securing an exclusive sports betting content agreement. This collaboration will enhance XLMedia’s brand visibility and provide valuable content to Newsweek’s audience, further strengthening their position in the market.
XLMedia’s financial performance in FY22 reflects its continued growth and success in the digital performance publishing industry. With a significant revenue increase, driven primarily by the Sports and Gaming segment, the company has demonstrated its ability to adapt to evolving market conditions and capitalize on regulatory changes. Expansion into new states, strategic partnerships, and a focus on core activities have further contributed to XLMedia’s positive trajectory. As the company continues to explore opportunities for growth and optimize its operations, stakeholders can anticipate sustained success in the years to come.