Leading digital performance publisher and affiliate business with worldwide partnerships, XLMedia, has just released its 2021 numbers. Thanks to a series of important acquisitions as well as its growth in the sports betting market in the US, the company reported excellent numbers.
178% Increase in Total Revenue from Sports Betting in 2021
The company’s yearly revenues from its sports vertical reached the $31.4 million mark, showcasing an impressive 178% increase from 2020’s $11.3 million. The growth was positively stimulated by a series of important strategic acquisitions in the sports field in the country. The list includes the acquisition of CBWG Sport, a company that specializes in sports gaming and sports betting at the end of 2020, as well as the acquisition of a sportsbook review platform called Sports Betting Dime in the spring of 2021.
Sports Betting Dime was acquired for $26 million and it helped XLMedia make its presence in the US more visible. It also provided the business with an American affiliate brand for sports betting and strengthened its presence in the country. XLMedia paid a $12 million cash advance and issued close to 8 million new shares valued at $3.5 million to acquire CBWG, while also considering a potential contingent worth as much as $9.5 million payable by the end of 2023. At the time of the acquisition, CBWG was registered as a sports gaming affiliate in six different US states, thus ensuring XLMedia’s expansion in the American market.
Over the same period, the company also designated Caroline Ackroyd as its new chief financial officer of the group and Cedric Boireau as non-executive manager, while Nigel Leigh was appointed chief information officer.
610% YoY Net Profit Increase Due to Growth in the Sports Betting Market
The company reported an operating profit of $5.6 million for the fiscal year 2021 compared to only $0.1 million in 2020. The total revenue went up by 21.4% reaching $66.5 million at the end of 2021 compared to $54.8 million in 2020.
The adjusted profit before tax was $10.5 million from $5.3 million in 2020, while the reported profit before tax was $4 million from $1.1 million in the previous fiscal year. XLMedia also reported $24.6 million worth of cash and short-term investments on the last day of 2021 compared to $13.9 million on December 31, 2020.
The company explained its revenue rose through its ongoing expansion in the sports wagering market in North America. The same growth also triggered a decrease in online casino vertical revenues in Europe by 26.8% down to $23.2 million compared to $31.7 million in 2020.
XLMedia’s chief executive officer Stuart Simms called the growth a “great progress in North America” in the last year, while also mentioning the significant changes in the company’s organization as a driving factor. The company is determined to turn into an important player in the region while pursuing large sports betting markets that are fully regulated. Simms added the company was in good shape and prepared to keep exploring new opportunities.