XLMedia to sell Europe, Canada assets for up to $42.5m

The digital media company, which manages a portfolio of premium brands with an emphasis on sports and gaming in regulated markets, had said in December that it was "exploring the opportunity to create shareholder value through further asset sales".

For the year to the end of December 2023, the revenue and adjusted EBITDA attributable to the assets is estimated to be $21.4m and $6.6m, respectively.

XLMedia plans to use the proceeds to cover asset transition costs, pay the final deferred US acquisition payment and settle outstanding tax provisions and provide working capital to support the North America business while returning cash to shareholders.

Chair Marcus Rich said: "The board believes the sale of these assets, which is approximately two times the current market capitalisation of the whole company, is an excellent outcome for XLMedia and its shareholders.

"Importantly, this transaction will allow the company to clear legacy liabilities, provide working capital and return cash to shareholders."

Following completion of the sale, XLMedia will be reorganised to support the North America business.

"The group's strategy for North America remains to expand the Sports footprint, deepening audience relationships and diversifying revenue streams with the goal of more predictable, stable income," it said.

"Additionally, the business will seek to drive gaming in select markets through quality content and engaging consumer features to capitalise on the high-margin vertical."

At 1350 GMT, the shares were up 98% at 12.38p.