XL Media (XLM) has provided a trading update ahead of the release of its full-year results, providing a glimpse into its US growth thanks to the increasing legalization of sports betting.
Updating investors on the full year of trading, XL Media anticipates revenues of approximately $73.3m, up at a steady 9.7% year-over-year.
The sports betting publisher also expects adjusted EBITDA between $16.1m – $16.6m ahead of publishing its full results in March.
XL Media sports division going strong
Placing an increased emphasis on US operations, XL Media noted that its Sport and Gaming revenues have increased by 27% to $69.6m, with adjusted EBITDA from the vertical of $17.5m – $18m.
Sports betting provided a big boost to the publisher’s topline, with revenue across its sports division up 72% YoY to around $54m. This has been boosted by several state launches throughout 2022, including that of New York and Maryland which have provided boosts to its operations.
Several launches including Ohio on New Year’s Day means that XLM is now live in 18 US states, with more to follow as Massachusetts gets set to launch retail sports betting today and online sports betting in March.
Declines across casino division
Meanwhile, XLM’s casino and gaming assets have proven to not be as lucrative as sports betting, with revenues from this vertical amounting to $15.6m, a decline from 2021’s $23.2m.
Regarding casino performance, the company stated: “The casino business progressed the rebuilding of its sites during 2022, delivering increasing audiences, growing new depositing customers, and building new tail revenue from its revenue share deals.
“As expected, old tail revenues declined further in the year, although overall total revenues stabilized in the second half of the year.”