Xlmedia Share Discussion Threads

[tomtum1] 21/3/2024 17:40

Ha ha ha. Poor Johny no mates lol

[someuwin] 21/3/2024 15:04

From Cavendish Today...

- Use of Proceeds – The use of proceeds will be a combination of the below:

 Return significant capital to shareholders.

 Settle the outstanding tax liabilities (we estimate them to be c.$5m) and deferred acquisition payments of c.$4m, which will be paid later in FY24E.

 Provide capital for the US sports and gaming business. The strategy remains to deepen audiences through owned & operated and partner websites, and generate more predictable diverse revenue streams. For example, moving relationship with the betting operators towards revenue share agreements rather than fixed upfront fees and investing more in US gaming websites which are less seasonal than sports revenues.

- Forecasts – We are yet to release our FY24E forecasts, but once we have digested the impact of the latest deal, we will release forecasts for the continuing operations.

- Valuation – We forecast FY23E net debt of $0.1m (including deferred consideration). Following the completion of the deal we expect net cash to be c.$35m (after deducting fees), although note the staggering of cash payments. If we apply the peer group FY1 EV/EBITDA multiple of 5.5x to the remaining EBITDA of $5m in the business, we get to an EV of c.$26m. Adding back the cash and converting into GBP, it gives us a market cap of c£48m, which equates to c.200% upside from current levels.

[northwards] 21/3/2024 14:19

Funny old game - I sold 70,000 a few days ago. Thankfully kept a few under the mattress.

[northwards] 21/3/2024 14:16

Is there a figure for cash returning to shareholders? All debt / cash flow concerns now gone. US business surely now next to go in medium term.

[farmergeorge] 21/3/2024 13:49

And oneillshaun, I'd be happywith a divi of 4p, even exstatic!

[farmergeorge] 21/3/2024 13:47

So far, hit a high of 13.75p. We have an interesting situatuion - where will it all end?

[horndean eagle] 21/3/2024 13:11

I think it will get taken out by the end of the year. US assets will prob be worth a higher multiple than what they have just sold. Would be surprised if its less than 20p. 10.5p of net cash post disposal so remaining business in for virtually free.

[someuwin] 21/3/2024 13:07

No buy quote again.

[aishah] 21/3/2024 12:53

Cash already earmarked:
"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."

[oneillshaun] 21/3/2024 12:45

Farmergeorge - i am now very interested to hear what the plan is with the 42m USD, at least now they can massively cut the headcount and just focus on the US business.

I have to say props to CEO this is a pretty major day for XL media the deal is good and Stuart really knows what he is buying.

[farmergeorge] 21/3/2024 12:05

oneillshaun,your 5p projection frightened them and they got down to business. Do it again ;-).

[someuwin] 21/3/2024 12:02

£48m mkt cap = 18.3p so still loads of value to be had here.

[someuwin] 21/3/2024 11:50

Cavendish

Significant Asset Disposal for $42.5m Total Consideration

XLMedia has announced the sale of its Europe and Canada sports and gaming assets to Gambling.com Group for a total consideration of $42.5m ($37.5m fixed, $5m earnout). The sale is in-line with its recently stated strategy to maximise value for shareholders including the disposal of assets where opportunities arise. The proceeds will be used to settle outstanding tax and acquisition liabilities, invest in the US business and return significant sums to shareholders. Applying peer multiples to the remaining business and adding the cash from the disposal gives a market cap estimate of £48m, representing c.200% upside.

[oneillshaun] 21/3/2024 11:46

Let's give it a few hours to kick but the share price needs to tick up a fair bit the deals is for $42m and the market cap stands at $25m

[sophia1982] 21/3/2024 11:42

Not ideal, but finally some relief..
I am surprised at the relatively small share movement. It now trades at less than current net cash (before deferred tax, etc)
I am not sure how to value the new "XLM", but perhaps a multiple of 5 for the US Ebitda + a minimum of $25 of net cash should be fine = $55m = 15-16p per share?

[fillipe] 21/3/2024 11:37

Out for a 39% gain.

f

[queenbreguet] 21/3/2024 11:21

Out at a small loss.

[farmergeorge] 21/3/2024 11:05

Yes, it's incredible. However, the directors will not have decimated their interests.

[northwards] 21/3/2024 08:07

Possibly. Shareholder value decimated here.

[northwards] 20/3/2024 06:50

The Group will report results for FY 23 in early April 2024, at which time management will provide insight into the Group's performance for 2023 and plans for 2024.

[oneillshaun] 21/2/2024 09:32

A company that was openly mocked by XL Media, Raketech did not start out with the best business model but it’s doing pretty well these days.


Revenues totalled EUR 22.8 million (EUR 15.7 million) representing an increase of 45.3%. Organic growth
amounted to 45.3% (23.1%) and NDCs increased by 44.5%. The increase in revenues and NDCs is an effect of strong performance within sub-affiliation.

[oneillshaun] 15/2/2024 15:16

lol not even close, Like I said XL won't make it to 10p

[john09] 15/2/2024 14:46

You wish there was a situation here lol