XLMedia Plc · OTC:XLMDF
XLMedia — FY2022 Earnings Presentation
32 slides from XLMedia's earnings presentation, Mar 30, 2023
Slide 1: XLMedia FY 2022 Final Results
XLMedia | Privileged & Confidential XLMEDIA FY 2022 FINAL RESULTS 30 MARCH 2023
Slide 2: Table of Contents
XLMedia | Final Results 2022 2 TABLE OF CONTENTS 1 Business Update (David King, CEO) 2 Financial Update (Caroline Ackroyd, CFO) 3 Outlook 4 Takeaways 5 Q&A
Slide 3: Introduction
XLMedia | Final Results 2022 3 INTRODUCTION A highly experienced leadership team delivering XLMedia’s stated strategy DAVID CAROLINE KING, ACKROYD, CEO CFO Joined July 2022 Joined March 2022 ● Broad media and digital ● Significant knowledge of publishing industry the gaming and leisure experience se
Slide 4: XLMedia is a leading global digital media company
XLMedia | Final Results 2022 4 XLMEDIA IS A LEADING GLOBAL DIGITAL MEDIA COMPANY We create compelling content that attracts highly engaged audiences and connect them to relevant advertisers
Slide 5: Financial Highlights FY 2022
XLMedia | Final Results 2022 5 FINANCIAL HIGHLIGHTS FY 2022 CONTINUING NORTH AMERICA ADJUSTED REVENUE SPORTS REVENUE EBITDA* $71.8m $46.4m $17.8m +24% YOY +112% YOY +18% YOY *From continuing operations.
Slide 6: Financial Highlights FY 2022: Core Business
XLMedia | Final Results 2022 6 FINANCIAL HIGHLIGHTS FY 2022 CORE BUSINESS CORE ADJUSTED REVENUE EBITDA* $69.6m $18.2m +27% YOY +25% YOY *From core operations.
Slide 7: Media Meets Betting
XLMedia | Final Results 2022 7 BRANDS CONTENT MEDIA MEETS SPORTS BETTING BETTING GAMING MEDIA AUDIENCES PARTNERS
Slide 8: This is the New XLMedia
XLMedia | Final Results 2022 8 THIS IS THE NEW XLMEDIA 2021 CORE REVENUE MIX 2022 43% US SPORTS 67% 0% US GAMING 2% 17% EU SPORTS 11% 40% EU GAMING 20%
Slide 9: 2023 Core Business Strategy
XLMedia | Final Results 2022 9 WE WILL SPORTS 2023 CORE MEDIA ● Expand North America Sports footprint to capitalise on market growth BUSINESS ● Refine and expand EU Sports portfolio to capture more revenue STRATEGY IS ● Drive Gaming in select markets like the US to capitalise on the high-margin gami
Slide 10: From 0 to 19 US States in Under 4 Years
XLMedia XLMedia| |Final Results&2022 Privileged Confidential 10 FROM 0 TO 19 US STATES IN UNDER 4 YEARS 2019 2020 2021 2022 Q1 2023 LIVE IN LIVE IN LIVE IN LIVE IN LIVE IN 0 STATES 8 STATES 13 STATES 17 STATES 19 STATES LAUNCHED LAUNCHED LAUNCHED LAUNCHED Colorado Arizona Virgina Kansas Maryland Mas
Slide 11: New State Launches Create an Initial Spike in Revenue
XLMedia | Final Results 2022 11 NEW STATE LAUNCHES CREATE AN INITIAL SPIKE IN REVENUE BEFORE RETURNING TO A NORMALISED LEVEL New York & Louisiana Launch Kansas Launch Maryland Launch REVENUE SPORTS NEW US STATE LAUNCHES (SPORTS)* GAMING *After around 10 days post state launch, revenue falls into nor
Slide 12: Building Sustainable Revenues
XLMedia | Final Results 2022 12 BUILDING SUSTAINABLE REVENUES Increasing sustainable revenue will come from audience retention and revenue diversification TODAY LONG TERM PLAN MAXIMISE REVENUE FROM US STATE LAUNCHES BUILD SUSTAINABLE REVENUES IN REGULATED MARKETS ● NA is CPA-led, but is starting to
Slide 13: Continuous Sports Content Cycles Driving Retention
XLMedia | Final Results 2022 13 CONTINUOUS SPORTS CONTENT CYCLES THAT TAP INTO AUDIENCE ENGAGEMENT & DRIVE RETENTION PRE-GAME GAME POST GAME BETWEEN GAME REPEAT BETWEEN GAME PRE-GAME Layer coverage with off-field Lead-up to build excitement content to add deeper Retention and anticipation for upcomi
Slide 14: Developments Across the Business FY 2022
XLMedia | Final Results 2022 14 DEVELOPMENTS ACROSS THE BUSINESS FY 2022 Underpinned by a clear strategy, focused on sport and gaming, prioritising regulated markets, expanding footprint while exiting non core VERTICALS OPERATIONS ORGANISATION ● Launched a fourth Saturday ● Rebuilt SEO teams around
Slide 15: Financial Results
XLMedia | Final Results 2022 15 Financial Results Caroline Ackroyd, CFO
Slide 16: As per the FY 2022 Trading Update
AS PER THE We provided guidance for an Adjusted EBITDA range of FY 2022 $16.1- $16.6m for the Group TRADING FINALISED FOR FY 2022, WE DELIVERED UPDATE Group revenue at $73.7m Group Adjusted EBITDA at $16.7m JANUARY 2023 including discontinued operations
Slide 17: Financial Highlights FY 2022
XLMedia | Final Results 2022 17 FINANCIAL HIGHLIGHTS FY 2022 CONTINUING ADJUSTED FREE CASH FLOW REVENUE EBITDA* $71.8m $17.8m $10.1m +24% YOY +18% YOY +330% YOY *From continuing operations.
Slide 18: Financial Highlights FY 2022: Core Business
XLMedia | Final Results 2022 18 FINANCIAL HIGHLIGHTS FY 2022 CORE BUSINESS CORE NORTH AMERICA ADJUSTED REVENUE SPORTS REVENUE EBITDA* $69.6m $46.4m $18.2m +27% YOY +112% YOY +25% YOY *From core operations.
Slide 19: Core Revenue by Geography in FY 2022
XLMedia | Final Privileged Results & Confidential 2022 19 CORE REVENUE BY GEO IN FY 2022 NORTH AMERICA EUROPE Sports $46.4m Sports $7.6m 112% YOY (20)% YOY Gaming $1.3m Gaming $14.3m 333% YOY (38)% YOY O&O $19.3m MPB $28.4m 25% YOY 324% YOY
Slide 20: Strong 2022 Growth While Maximising State Launch Spikes
XLMedia | Privileged Final Results 2022 & Confidential 20 20 STRONG 2022 GROWTH WHILE MAXIMISING STATE LAUNCH SPIKES Following the launch Change of a new legal online 2022 2021 2022 vs sports betting state in 2021 (%) North America, we State launch revenue spike $10.3m $0.9m 1,044% typically see a s
Slide 21: Core Revenue Split by Vertical FY 2022
XLMedia | Final Privileged Results & Confidential 2022 21 CORE REVENUE SPLIT BY VERTICAL FY 2022 Sports and Gaming identified as core Sports 78% Gaming 22% North America Sports North America Gaming 86% 8% EU Sports Europe Gaming 14% 92% SPORTS REVENUE* CORE REVENUE GAMING REVENUE 2022 2021 % CHANGE
Slide 22: Target vs Actual Core Business Gross Margin FY 2022
XLMedia | Final Privileged Results & Confidential 2022 22 TARGET VS ACTUAL CORE BUSINESS GROSS MARGIN FY 2022 TARGET VERTICAL ACTUAL 40-50% NORTH AMERICAN SPORTS 50% 60-70% OWNED & OPERATED 61% 40-50% MEDIA PARTNERSHIP BUSINESS 40% 60% EU SPORTS 55% 70% GAMING 75%
Slide 23: Cost Management
XLMedia | Privileged Final Results 2022 & Confidential 23 23 COST MANAGEMENT Total cost base* excluding Media Partner revenue share fell from $39.8m to $37.6m from continuing operations providing net cost savings of $2.2m, having incurred a full 12 months of costs of acquired businesses** COST REDUC
Slide 24: Growing Adjusted EBITDA
XLMedia | Privileged Final Results 2022 & Confidential 24 24 GROWING ADJUSTED EBITDA ADJUSTED EBITDA Change 2022 2021 2022 vs 2021 (%) ($M) CONTINUING OPERATIONS vs CORE Operating profit from continuing 5.1 1.1 364% operations Depreciation and Amortisation 7.3 7.0 EBITDA from continuing 12.4 8.1 53%
Slide 25: Free Cash Flow
XLMedia | Privileged Final Results 2022 & Confidential 25 25 FREE CASH FLOW +330% CHANGE 2022 VS 2021 CASH AND OPERATING CASH FLOW ($M) ● Defined as net cash flow from operating activities minus capex (excluding acquisition costs) ● Group remained in a cash positive position in 2022 with cash balanc
Slide 26: Cash Payments
XLMedia | Privileged Final Results 2022 & Confidential 26 26 CASH PAYMENTS 2022 2023* 2024* WE ARE Regularly reviewing cash forecasts and North American Assets $17.6m $4.0m $4.0m capital allocation with the Board European assets $0.7m $0.4m - Ensuring we have sufficient cash to: Deferred considerati
Slide 27: Takeaways
XLMedia | Final Results 2022 27 Takeaways
Slide 28: Outlook
XLMedia | Privileged & Confidential 28 The Group has made a solid start to 2023 with the launch of online sports betting in Ohio on 1 January 2023 with early performance in-line with management’s expectation. The immediate focus is now on growing revenues from the recent launch of online sports bett
Slide 29: Takeaways
XLMedia | Final Results 2022 29 TAKEAWAYS Two state launches in US market revenue share Medium term opportunity Q1 2023 evolving to grow gaming in US (Ohio & Massachusetts) Focus on building State launches create Ongoing focus on cost sustainable revenues spikes in revenue growth and cash management
Slide 30: Q&A
XLMedia | Final Results 2022 30 Q&A
Slide 31: Thank You
XLMedia | Final Results 2022 THANK YOU CONTACT XLMedia plc Vigo Consulting David King, Chief Executive Officer Jeremy Garcia / Kendall Hill Caroline Ackroyd, Chief Financial Officer www.vigoconsulting.com www.xlmedia.com Tel: 020 7390 0233 ir@xlmedia.com via Vigo Consulting
Slide 32: Financial Year Summary
XLMedia | Privileged Final Results 2022 & Confidential 32 32 FINANCIAL YEAR SUMMARY CONTINUING OPERATIONS 1 CORE BUSINESS 2 Change Change 2022 2021 2022 vs 2022 2021 2022 vs 2021 2021 Revenue ($’m) 71.8 57.8 24% Revenue from core2 ($’m) 69.6 54.6 27% Gross profit ($’m) 37.3 37.2 - Adjusted Gross pro