Affiliate Monitor Company by company Q1 results analysis

Following the sale of Freebets and its associated assets to Gambling . com Group , it might be wondered what the strategy is at XLMedia , given that it was only the European business which was helping the company keep its head above water .

As can be seen from the full year 2023 results statement , while the European betting and gaming affiliation business saw revenue for the year marginally down by 2 % to $ 22.8m from $ 23.2m the previous year , the North American business tumbled by 42 % to $ 27.5m .

More to the point , the question of whether XLMedia will be continuing as a business in any form must be in question after comments from non-exec chair Marcus Rich who answered in the affirmative when asked directly on the analyst call whether the US assets were also up for sale .

“ We ’ ve had interest in the US assets , in particular , since the announcement of the European disposal ,” he said . “ There is an active M & A market in the US as we see consolidation happening . The Board ’ s responsibility is to maximise shareholder value .”

Rich explained that as it stands the company sees the value in selling assets rather than selling the plc as a whole .

Chart 15 : XLMedia revenue 2022-2023 ($ m )

“ We had conversations about the American business and benchmark full plc disposal ,” he said , before that against what the ongoing P & L adding that the dilemma for the looks like for the business in the US board was threefold . First , the price moving forward .” of the plc was obviously pegged to However , as to the value of the share price . But the company those remaining US assets , CEO believes the assets are worth more King was somewhat evasive . “ We than the share price implies . remain very enthusiastic about

Second , there was more interest the potential both in trading terms from buyers in specific assets , such but also in value terms for the US as the Freebets business , rather assets ,” he said . than the whole .

As discussed in part one of this

And third , the company itself report , XLMedia has repeated felt it could deliver more value the message heard elsewhere selling the business piecemeal , as about its owned-and-operated he suggested was proved by the sites benefitting from the changes Freebets deal . Indeed , the company imposed by Google and their effect achieved a price of $ 42.5m for on its media partnership content . Freebets , which was more than the Whether that will be enough to value of the market cap at the time . make its assets attractive enough ( Note , the share price rose 70 % on to buyers remains open . But it news of the deal and the current seems likely that whatever the market cap is c .£ 30m .) valuation , the likelihood of XLMedia “ So we , as a board , would have remaining as an entity at all in the to consider any serious offer for the medium term is slim .

Source : company reports iGB Affiliate Monitor