Affiliate and marketing services firm XLMedia has published its unaudited interim results for the six months ended 30 June 2019 alongside an update on progress across its market activities, including the newly regulated US sports betting sector.
The headline figures, hindered by challenging trading conditions in its European business interests, show revenues of $42.5m (H1 2018: $47.2m); gross profit of $28.8m (H1 2018: $31.7m); adjusted EBITDA of $18.6m (H1 2018: $21.6m); and pre-tax profit of $13.8m (H1 2018: $17.6m).
As a result, the Board has revised market guidance for the year ended 31 December 2019 and now expects the group to deliver revenues of circa $80m and adjusted EBITDA to be circa $34m for the year.
On a more upbeat note, the firm stated that the US gambling market continues to develop positively with its subsidiary, XLMedia US Limited, accepted recently as an authorized Gaming Service Provider by the Pennsylvania Gaming Control Board for online advertising of online sports betting and casino brands in the state of Pennsylvania.
It stated: “The US market continues to present a mid to long term opportunity as the number of states in various stages of regulating sports betting continues to grow, with very few, including New Jersey and Pennsylvania, which are already live. The company remains committed to investing $7m over the next three years.”
CEO Ory Weihs commented: “This year has proven to be challenging for both XLMedia and the industry as a whole, as the gaming industry changes and regulates. However, this does result in the group having greater visibility, more sustainable revenues and stable earnings.
“Whilst we expect this disruption to continue in the midterm, we remain committed to our stated strategy, focusing on publishing. We continue to diversify our asset base, specifically developing our US gambling strategy and the personal finance sector, in which we continue to make good progress with this sector now accounting for 14% of the group’s revenues.”