XLMedia (XLM) H1 2024 earnings summary

Executive summary

• Sale of European and Canadian businesses completed in April, with $20 million received and $10 million due in October 2024; focus now on North America and CPA-led revenues.

• H1 2024 continuing revenues were $10.4 million, down 38% year-over-year, mainly due to timing of state launches and NFL seasonality.

• Cost reduction initiatives and rightsizing of the cost base implemented post-asset sale, aligning with a US-only business.

• North America now comprises 94% of continuing revenues, with operations in 21 states for sports betting and 4 for online casino.

• Discontinued business revenue was $5.2 million, representing three months of trading before asset sale.

Financial highlights

• H1 2024 continuing revenues: $10.4 million, compared to $16.9 million in H1 2023.

• Adjusted EBITDA from continuing business was $0.9 million (down 72% year-over-year), with a margin of 9%.

• Operating loss from continuing business increased to $6.1 million; statutory loss for the period was $7.7 million.

• Cash balance as of June 30, 2024, was $19.4 million, up 162% year-over-year.

• Real money players/FTDs in North America reached 48,000, a 4% increase year-over-year.

Outlook and guidance

• North American revenues from April to August 2024 performed ahead of the prior year.

• New customer acquisition at the start of NFL season was slower than expected, but operator budgets may increase.

• Board expects adjusted EBITDA for continuing business to remain broadly in line with market expectations.

• Board is exploring value creation opportunities and preparing for future state launches.

• Surplus cash is expected to be returned to shareholders, with initial return planned for Q4 2024.