【foxwoods offers and events】XLMedia to receive just $1m earnout from Sportradar, missing $10m target

The foxwoods offers and eventscompany sold its North American business to Sportradar in November 2024 for up to $30m, with $20m paid upfront and an additional $10m contingent on the business meeting specific revenue and gross profit targets by the end of 2024.

However, XLMedia has now announced that just $1m of that additional payment will be made.

The company has yet to publish its 2024 results.

XLMedia also expects to receive $7.5m on 1 April from Gambling.com Group for its European assets, which were sold in April 2024.

A separate earnout of up to $5m remains possible, and XLMedia said it will provide an update on that in due course.

The assets involved in that transaction included affiliate brands such as Freebets.com, WhichBingo.co.uk, Nettikasinot.com, and Vedonlyonti.com, alongside smaller European and Canadian sites. 

Despite the disappointing North American earnout, XLMedia said its total expected earn-out payments across both disposals remain within the previously guided range of $3m to $5m.

Revenue drop

The reduced payout underscores the challenges XLMedia faced in North America. The company’s US revenue growth did not align with initial expectations, despite efforts to scale the business and establish key partnerships with major operators.

According to the latest available financial results, the business reported a 29% year-on-year revenue decline to $50.3m in 2023, along with a 36% drop in adjusted EBITDA to $12.1m for the full year.

Revenue from North America reached $27.6m, while the company’s European Sports and Gaming assets generated $22.8m in 2023.

The acquisitions have left XLMedia, once a leader in the gaming affiliate sector, as a cash shell listed on the London Stock Exchange.