XLMedia Provides Update on North America Disposal Earnout
Why we think this is bad
The RNS indicates that the performance-related consideration for the North America Disposal will be only $1.0 million, which is significantly lower than the previously expected $10.0 million. This suggests a negative cash flow impact for the company. Additionally, the RNS states that the aggregate earnout amount across both the North America and Europe disposals is expected to be in the range of $3 million to $5 million, which is also lower than previous guidance. These factors point to a deteriorating financial performance for the company, leading to an overall BAD sentiment assessment.
Key Points
- Performance-related consideration for North America Disposal reduced to $1.0 million (previously expected $10.0 million)
- Aggregate earnout amount across North America and Europe disposals expected to be $3 million to $5 million, lower than previous guidance
Summary
XLMedia PLC (AIM: XLM) has provided an update on the performance-related consideration payable following the disposal of its North America Business to Sportradar AG in November 2024. The company notes that the performance-related element of the consideration will be only $1.0 million, which is significantly lower than the previously expected $10.0 million. Additionally, the aggregate earnout amount across both the North America and Europe disposals is expected to be in the range of $3 million to $5 million, which is also lower than previous guidance.