XLMedia PLC shares fell to a record low on Friday, after announcing that revenue for 2023 would fall shy of previous years.
Following the announcement, XLMedia shares dropped 23% to 5.86 pence each, the lowest since the company floated in 2014.
The London-based global digital media company said that a ‘change in the revenue profile’ of its north-American activities had been caused by, among other things, the exit of XLMedia’s major partner Barstool from the market.
As a result, revenues earned from August through October in previous years have moved back to mid-November.
Since the launch of ESPNbet in mid-November, the group has seen an uplift in revenue, and it said the rest of the year may still yield ‘significant revenues’. However, it admitted that ‘it is now unlikely that this will fully compensate for mid-period shortfalls and, consequently, North American revenues will now fall below previous forecasts’.
The group’s revenue for the full year is now expected in the range of $50.0 to $52.0 million, down from $71.8 million in 2022. The group also predicted adjusted earnings before interest, tax, depreciation and amortisation of $12 million to $14 million, down from $17.8 million in 2022.
XLMedia shares were down 15% at 6.28 pence each in London on Friday morning.
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