XLMedia leaders do not intend to pursue any further M&A activity and the company will delist from the London Stock Exchange after the sale of its core assets last year.
In an annual results statement on Thursday, XLMedia said that the company is currently considered “a cash shell” under LSE Alternative Investment Market (AIM) rules. It has no plans to seek an acquisition or acquisitions constituting a reverse takeover. The affiliate firm has no remaining material trading activities and expects to stop trading its shares next month.
XLMedia sold its European and Canadian operations to Gambling.com Group and its U.S. assets to Sportradar last year for $41 million and $21 million, respectively. Its U.S. operated sites included SportsBettingDime and SaturdayDownSouth.
Since then, the business’ full-time employee count has been cut to just seven. It was reduced from 146 to 17 last year and a further 10 people have left in Q1 2025.
“We have made substantial progress in reducing costs having successfully completed the transition of both European and North American assets to new owners,” said CEO David King.
“The outstanding tax liabilities remain the most significant residual cost and we are working rapidly with our advisers with a view to early submission of final tax returns. However, at this point we have no certainty over the timescales for final agreement from each tax authority.”
XLMedia expects further cash return to shareholders before delisting
Its latest report shows that XLMedia accounts maintain a cash balance of $35 million, but it incurred a FY 24 operating loss before impairment charges of $15 million. The firm received a final payment consideration of $11.2 million from Gambling.com on April 1 and will receive a further $1 million from Sportradar on April 15.
In February, the group returned more than $17 million in cash to shareholders via a tender offer.
“We are pleased to have realised value for shareholders from the sale of the group’s assets having made an initial return of capital in February,” added Chair Marcus Rich. “It is our intention to make a further return of capital prior [to] the company’s shares being suspended which is expected to take place on or around May 12, 2025.”
King, Rich and other board members will step down on June 30.
