Half Year 2024 XLMedia PLC Earnings Call Transcript
Key Points
- XLMedia PLC (XLMDF) successfully increased first-time depositors (FTDs) by 4% year-on-year, reaching 48,000 in the first half of 2024.
- The company received $20 million in proceeds from the sale of its European business, strengthening its cash position to $19.4 million as of June 30, 2024.
- Cost reduction initiatives are underway following the sale of the European business, aiming to align the cost base with the size of the US operations.
- XLMedia PLC (XLMDF) is focusing on revenue diversification, including investments in paid media and daily fantasy sports (DFS), which are showing positive initial signs.
- The company has no further acquisition payments due for historic acquisitions, providing financial stability moving forward.
- Continuing revenues decreased to $10.4 million in H1 2024 from $16.9 million in H1 2023, reflecting a significant drop.
- The launch of online sports betting in North Carolina did not match the revenue and FTD levels seen in Ohio and Massachusetts in H1 2023.
- The US business is highly seasonal, with revenues heavily dependent on the NFL season and state launches, leading to unpredictability.
- The company incurred a $6.2 million operating loss, with significant depreciation adjustments and $2.5 million in exceptional minimum guarantee payments.
- Despite growing FTDs, the company has not seen the expected acceleration in revenue, indicating a relatively soft market.
Good morning. Welcome to the XLMedia half-year 2024 results update. I'm David King, the CEO. Following the sale of the European business at the start of April, revenues are now split between the continuing business and the discontinued business. Continuing revenues at $10.4 million compared to $16.9 million in 2023. H1 2023 enjoyed the launch of online sports betting in a higher in January and being in the NFL season, the launch saw strong revenues and the first time depositors.
2024 half-one saw North Carolina launch in March after the NFL season. And as a result, in period revenues and FTDs were not in the same scale. However, April to June has tracked ahead of quarter two 2023, as of July and August. During the quarter, we started the process of reducing costs following the sale of the European business while obviously retaining staff to support the transfer of the business and assets to Gambling Group.
The business mix has shifted significantly following the sale. We're now clearly a North America sport and CPA lead. The
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
