XLMedia Plc · OTC:XLMDF
XLMedia — Shareholder Meeting (May 2023)
24 slides from XLMedia's shareholder meeting presentation, May 26, 2023
Slide 1: XLMedia Annual General Meeting 2023
XLMedia | AGM 2023 XLMEDIA ANNUAL GENERAL MEETING 2023 26 MAY 2023
Slide 2: Agenda for XLMedia Annual General Meeting 2023
XLMedia | AGM 2023 2 AGENDA FOR XLMEDIA ANNUAL GENERAL MEETING 2023 1 Introduction (Marcus Rich, Chair) 2 2022 Overview (David King, CEO) 3 2023 Progress on Strategy (David King, CEO) 4 Resolutions (Marcus Rich, Chair)
Slide 3: Introduction
XLMedia | AGM 2023 3 INTRODUCTION Delivering XLMedia’s stated strategy and shareholder value MARCUS DAVID RICH, KING, CHAIR CEO IN ATTENDANCE PETER JULIE CAROLINE MCCALL, MARKEY, ACKROYD, COMPANY NON-EXEC CFO SECRETARY DIRECTOR
Slide 4: XLMedia is a leading global digital media company
XLMedia | AGM 2023 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: 2022 Overview
XLMedia | AGM 2023 5 2022 Overview
Slide 6: This is the new XLMedia
XLMedia | AGM 2023 6 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 7: From 0 to 19 US states in under 4 years
XLMedia XLMedia| |AGM 2023 & Confidential Privileged 7 7 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 Massachuse
Slide 8: Financial highlights FY 2022
XLMedia | AGM 2023 8 FINANCIAL HIGHLIGHTS FY 2022 CONTINUING NORTH AMERICA ADJUSTED REVENUE SPORTS REVENUE EBITDA* $71.8m $46.4m $17.8m +24% YOY +112% YOY +18% YOY *From continuing operations.
Slide 9: Growing adjusted EBITDA
XLMedia XLMedia || Privileged AGM 2023& Confidential 9 GROWING ADJUSTED EBITDA ADJUSTED EBITDA Change 2022 2021 2022 vs 2021 (%) ($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% opera
Slide 10: Free cash flow
XLMedia XLMedia || Privileged AGM 2023& Confidential 10 10 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 balances
Slide 11: Strong 2022 growth while maximising state launch spikes
XLMedia XLMedia || Privileged AGM 2023& Confidential 11 11 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 sig
Slide 12: New state launches create an initial spike in revenue
XLMedia | AGM 2023 12 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 normalised le
Slide 13: Building sustainable revenues
XLMedia | AGM 2023 13 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 change ● A
Slide 14: 2023 Progress on Strategy
XLMedia | AGM 2023 14 2023 Progress on Strategy
Slide 15: Initial progress on strategy
XLMedia | AGM 2023 15 INITIAL PROGRESS ON STRATEGY We are delivering the strategy against a backdrop of change in the US market AREAS OF FOCUS PROGRESS ● Explore revenue share deals in US as part of revenue ● Signed revenue share deal with Bet365, exploring further diversification opportunities ● Ex
Slide 16: Update on trading and outlook 2023
XLMedia | AGM 2023 16 UPDATE ON TRADING AND OUTLOOK 2023 In the US, we saw a strong start to Q1 with the launch of online sports betting in Ohio. However, as seen elsewhere in the market, H1 2023 revenues are inevitably going to be below the prior comparator period of H1 2022, which benefited from t
Slide 17: Next trading and outlook update
XLMedia | AGM 2023 NEXT TRADING AND The Group will provide a full trading update OUTLOOK UPDATE covering the six months to 30 June 2023 at the FOR 2023 end of July.
Slide 18: Q&A
XLMedia | AGM 2023 18 Q&A
Slide 19: Resolutions
XLMedia | AGM 2023 19 Resolutions
Slide 20: Resolutions to be considered
XLMedia | AGM 2023 20 RESOLUTION DESCRIPTION RESOLUTIONS 1 To Receive the Financial Statements for the Year Ended 31 December 2022 TO BE 2 To Re-appoint Marcus Rich as Director of the Company CONSIDERED 3 To Re-appoint David King as Director of the Company 4 To Re-appoint Caroline Ackroyd as Directo
Slide 21: Proxy votes received in advance
XLMedia | AGM 2023 PROXY VOTES RECEIVED IN ADVANCE 21 FOR AGAINST WITHHELD % VOTES % VOTES VOTES CAST (EXCL. RESOLUTION DESCRIPTION CAST VOTES CAST VOTES VOTES VOTES WITHHELD Receive Financial Statements and 98.63 109,616,341 1.37 1,525,603 0 111,141,944 1 Statutory Reports 2 Re-appoint Marcus Rich
Slide 22: Thank you
XLMedia | AGM 2023 THANK YOU CONTACT XLMedia plc Vigo Consulting David King, Chief Executive Officer Jeremy Garcia / Caroline Ackroyd, Chief Financial Officer Fiona Hetherington / www.xlmedia.com Kendall Hill www.vigoconsulting.com [email protected] via Vigo Consulting Tel: 020 7390 0233
Slide 23: Financial year summary
XLMedia XLMedia || Privileged AGM 2023& Confidential 23 23 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 profi
Slide 24: 2023 core business strategy is oriented around three primary verticals
XLMedia | AGM 2023 24 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 gaming vertic