XLMedia expects to meet profit targets for the year, despite regulatory disruption in the online gambling sector which contributed to a half-year revenue drop to US$59.1m, compared to $67.9m in H1 2017.
The provider of digital performance marketing services spent US$45.8m on acquisitions, during a period in which it suffered from the closure of the Australian online casino market, changes to gambling advertising regulations in the UK and uncertainty over the status of European markets including Germany, where some operators suspended activity.
XLMedia’s gross profit was also down to $33.5m (H1 2017: $35.2 million), with adjusted EBITDA at $20.9m ($22.8m) and profit before tax $16.8m ($19.5m). The interim dividend of $6.5m, or 3.0040 cents per share, compares to 4.0226 cents per share 12 months earlier.
The company cited a strong balance sheet, with $51.3m of cash and short-term investments to be deployed in further acquisitions for future growth.
XLMedia’s acquisitions during H1 2018 included Finnish gambling information sites for $18m, whichbingo.co.uk for $10.5m and three US financial information websites for $5.9m.
The company is also preparing for a launch into the US gambling market, while enhancing its mobile apps offering in the Asia-Pacific. Ory Weihs, XLMedia’s CEO, said: "The Group produced a solid profit performance in the first half, albeit against a backdrop of regulatory pressures and challenging market conditions in the online gambling sector. However, we are now seeing positive signals and expect to meet profit expectations for the full year.
"Since the beginning of this year we have been focusing on implementing our strategy and executing acquisitions in order to accelerate growth, allocating over $45 million of capital for acquisitions. Our newly acquired assets perform as expected and we are confident they will deliver a strong return.”
