XLMedia cuts dividend as profit slips

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XLMedia PLC said Monday it expects to meet full year expectations, despite a dip in interim profit and revenue.

Revenue for the six months to June was USD59.1 million, compared to USD67.9 million for the same period a year prior. XLMedia’s pretax profit fell to USD16.8 million from USD19.5 million.

XLMedia has reduced its dividend for the interim period to 3.00 US cents from 4.02 cents a year prior, though it said its balance sheet is “strong” with USD51.3 million in cash which may be used for future acquisitions.

Deals made during the period amounted to USD45.8 million, including a Finnish gambling information site for USD18.0 million.

XLMedia said regulatory changes in the gambling industry affected performance, as gambling firms adjusted in the face of stronger advertising rules.

Publishing revenue rose 9% to USD32.4 million, driven by acquisitions, while Media revenue slipped 31% as XLMedia made a planned move to exit low margin activity.

XLMedia said it has begun the second half of the year well, as a number of markets recover, and it is confident on meeting profitability expectations for 2018 as a whole.

Chief Executive Ory Weihs 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 USD45 million of capital for acquisitions. Our newly acquired assets perform as expected and we are confident they will deliver a strong return.”

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