XLMedia PLC

Management did not state full-year revenue, EPS, or gross margin in the transcript. It said the group recorded an operating loss of 44.9 million, driven by a non-cash impairment of European and U.S. sport assets, and removed 3.1 million of exceptional minimum guarantee costs in arriving at adjusted EBITDA. Cash at bank was 4.8 million at year-end 2023. The company said it generated approaching 10 million of cash in 2023, paid 3.5 million of Israeli tax liabilities, and took out some 8 million of costs, including about 3 million of tech spend and a drop in staff costs from 19 million to 16.5 million. For 2024, management expects adjusted EBITDA of around 5 million for the continuing American business, with Q1 below last year because Ohio launched in January 2023 and North Carolina launched in mid-March 2024 after the NFL season had ended. They also said the next 10 million sale payment is expected in early October, with an initial distribution to shareholders targeted in Q4 2024.

David King framed the year as one of transition: a strong U.S. opportunity, but with 2023 performance affected by state-launch timing, increased competition, and the mix shift away from Europe. He emphasized that the sale of European assets leaves XLMedia focused on North America, where he sees meaningful runway as more states legalize and the company prepares for the new NFL season. His tone was constructive but cautious, with a clear emphasis on rightsizing the business, reducing costs further, and maximizing value from the remaining U.S. assets.

On the financial side, David King highlighted a 4.8 million cash balance at year-end, after paying down prior acquisition obligations and 2016-2020 Israeli tax liabilities. He said the group generated approaching 10 million of cash in 2023, while spending was reduced by about 8 million, including a 3 million reduction in technology spend and staff costs falling from 19 million to 16.5 million. He also detailed 3.1 million of exceptional minimum guarantee costs removed from adjusted EBITDA and noted there are no further acquisition payments due after this year, with the remaining STS payment of 4 million due at the end of Q3 2024.

Analysts asked whether the company would consider selling the U.S. assets, and Marcus Rich said the board would consider any serious offer and benchmark it against the ongoing U.S. P&L; he added that there is active M&A interest in the U.S. Another question focused on capital return timing and mechanism; management said it is still working through tax, cost, and transaction details, expects the second 10 million payment in early October, and is leaning toward a buyback or tender offer rather than dividends. In response to questions on Google’s recent changes, management said the updates appear to be improving visibility for owned-and-operated sites and some partner pages, though it is too early to quantify the effect.