Strategic acquisitions bring XLMedia 178% annual betting revenue in 2021
XLMedia, the leading digital performance publisher and affiliated business with global partnerships, has just released its 2021 numbers. Through a series of significant acquisitions as well as its growth in the US sports betting market, the company has recorded excellent figures.
178% increase in total sports betting revenue in 2021
The company’s annual revenue from its sports vertical reached the $31.4 million mark, posting an impressive 178% increase from $11.3 million in 2020. Growth was positively driven by a series of important strategic acquisitions in the field of sport in the country. The list includes the acquisition of CBWG Sport, a company specializing in sports games and sports betting in late 2020, as well as the acquisition of a sports betting review platform called Sports Betting Dime in the spring of 2021.
Sports Betting Dime was acquired for $26 million and helped XLMedia make its US presence more visible. It also provided the company with a US affiliate brand for sports betting and strengthened its presence in the country. XLMedia has made a $12 million cash advance and issued nearly 8 million new shares worth $3.5 million to acquire CBWG, while also considering potential potential worth up to $9.5 million payable by the end of 2023. At the time of acquisition, CBWG was registered as a sports gaming subsidiary in six different U.S. states, ensuring XLMedia’s expansion into the U.S. market .
During the same period, the company also appointed Caroline Ackroyd as its new group finance director and Cédric Boireau as non-executive director, while Nigel Leigh was appointed chief information officer.
Net profit increased by 610% year-on-year due to growth in the sports betting market
The company reported operating income of $5.6 million for fiscal 2021, compared to just $0.1 million in 2020. Total revenue increased 21.4% to 66, $5 million at the end of 2021, compared to $54.8 million in 2020.
Adjusted pre-tax profit was $10.5 million, compared to $5.3 million in 2020, while reported pre-tax profit was $4 million, compared to $1.1 million in 2020. Previous exercice. XLMedia also reported $24.6 million in cash and short-term investments on the last day of 2021, compared to $13.9 million as of December 31, 2020.
The company explained that its revenue has increased thanks to its continued expansion into the North American sports betting market. The same growth also caused vertical online casino revenues in Europe to decline by 26.8% to $23.2 million from $31.7 million in 2020.
XLMedia CEO Stuart Simms called the growth “great progress in North America” over the past year, while citing significant changes in the company’s organization as a driving factor. The company is determined to become a significant player in the region while pursuing large, fully regulated sports betting markets. Simms added that the company is in good shape and ready to continue exploring new opportunities.