XLMedia (XLM) Trading Update summary

Trading and operational highlights

• North America business performed in line with management expectations in H1 2024, with $10.4 million in revenue.

• Sale of Europe and Canada assets to Gambling.com completed for $37.5 million, with potential $5 million earnout.

• North Carolina's online sports betting launch in March 2024 contributed to customer growth, with further uplift expected in the new NFL season.

• North America H1 2024 revenue was lower year-on-year due to major state launches in 2023.

• Group continues to diversify revenue streams and optimize performance in existing legalized states.

Financial summary

• Group total revenue for H1 2024 was $15.6 million, down from $29.4 million in H1 2023.

• Discontinued Business contributed $5.2 million in Q1 2024, reflecting only pre-sale trading.

• Cash at end of June 2024 was $19.4 million after acquisition-related payments.

• Next $10 million payment from asset sale due in October 2024; initial capital return to shareholders expected in Q4 2024.

• Final deferred acquisition payment of $4 million due in September 2024, after which no further deferred payments remain.

Strategic and operational outlook

• Business is experiencing a seasonal dip in sports revenues during the NFL off-season.

• Focus remains on preparing for the new NFL season and maximizing performance in current markets.

• Revenue diversification includes daily fantasy sports, paid media, advertising, sponsorship, and gaming.

• Google actions in May 2024 temporarily impacted some partners, but most have not been negatively affected; owned sites are seeing ranking improvements.

• Adjusted EBITDA for Continuing Business estimated at $5 million for FY 2024, benefiting from NFL season and cost reductions.