XLMedia forecasts FY2021 revenue to rise by more than 20%

Gambling affiliate XLMedia expects its full-year 2021 results to be in line with expectations after releasing a trading update on Tuesday 1 February. The statement said the London-listed company anticipates revenue of around $66.6m (£49.3m), which would be an increase of 21% on the $54.8m achieved in 2020. Adjusted EBITDA is forecast at around $17.2m, up 41% from $12.2m the year before. Cash balances at the end of 2021 are predicted to be around the $24.7m mark. XLMedia pointed to two major US acquisitions: Saturday Football for $23m and Sports Betting Dime for $26m as a primary reason for a strong sports vertical in the US where XLMedia now operates in 15 states. Sports revenue is predicted to hit $25.2m compared with $11.3m in 2020. The group projects that its European casino assets will have taken a hit with revenue slated to be in the region of $23.2m compared to $31.7m 2020. It was specifically noted that its “Finnish casino assets are facing negative regulatory change” which will “significantly impact revenue performance in the coming year”. The group expects that as more states in the US legalise gambling, sports revenue will continue to grow, however predicts that the rapid rise in US revenue will be offset by the decline of its European casino vertical and the restructure of its personal finance arm. XLMedia shares fell by 11% on the back of the trading update.