XLMedia PLC (AIM:XLM, OTC:XLMDF) was under a cloud as the betting content specialist accompanied a warning about sales revenues with confirmation it had shelved plans to sell the company.
In particular, XLMedia said it had been affected by Penn Entertainment’s rebrand after acquiring the right to the ESPN name from Disney for US$1.5 billion.
Barstool, Penn’s gaming arm before the ESPN acquisition, was a major partner for XLMedia. Barstool has been sold back to its founder Dave Portnoy.
As a result, the second half of the year has seen revenues earned in previous years from August through October in part moving back to mid-November onwards.
ESPNbet launched in mid-November and from then on revenues have started to recover with a strong close to the year in North America expected, though this will not be enough to make up the earlier shortfall, said the statement.
European premium brands, Nettikasinot, Whichbingo and Freebets are going well, it added.
Revenues for the full year are now expected to be US$50 million to US$52 million with underlying profits (adjusted EBITDA) US$12 million to US$14 million.
On M&A, XLMedia said it is looking at more asset disposals though plans to sell the business wholesale have ended as this would not currently create value for shareholders.
Shares fell 12% to 6.5p.