XLMedia has provided the following update further to its announcement of 20 January 2020 relating to the reduction in ranking of a number of the Group’s websites.  The update addresses further developments, immediate actions being taken and the impact on the Group’s future strategy.

The Company is continuing to work with Google to understand the issues which have led to certain websites being demoted and is working hard to resolve what it believes to be the key issues, with a view to restoring the rankings of these online assets as quickly as possible. 

Currently 107 sites have been impacted since the initial announcement on 20 January. Of the sites impacted, over 84 are tier 3 or tier 4 sites, being sites which are typically legacy or of low commercial value to the Company. The remining 23 sites are tier 1 and tier 2 premium sites.  The sites that have been demoted by Google are predominantly in the online casino vertical, and the demotion activity by Google has not impacted the other verticals of the business, such as personal finance.

The Company believes that it is possible that a certain number of its tier 3 or tier 4 legacy sites may have had a collective negative impact on the ranking of a broader pool of the Company’s sites, including its premium sites.  The Company is therefore taking steps to remove or de-index such sites, which are seen as most likely to have been regarded by Google as having insufficient content, with the expectation that it will assist in the re-ranking of the premium sites.  However, until these actions are completed and some of the premium sites are successfully resubmitted, it will not be possible to be certain that the issue will have been resolved.

Further to the announcement relating to strategic changes on 19 December 2019, and as a direct consequence of the actions taken by Google, the Company has decided to accelerate some of its proposed strategic changes and refocus its activities on the sustainable growth of its publishing assets.  This will involve a focus on its core and profitable tier 1 and tier 2 premium sites and a significant reduction in its tier 3 and tier 4 sites and non-core business activities. 

As an immediate priority, the Company has identified the tier 1 and tier 2 premium sites that have been impacted and has prioritised all efforts in getting these reinstated by Google and has begun the process of removing a number of websites from its online portfolio that are either old legacy sites, or that it believes are not sufficiently compliant with current Google guidelines.  In addition, it has ceased certain activities which, following the closure of the majority of the media activity in March 2019, are no longer regarded as core to the future of the business.

Going forward, the Company will allocate significant resources to improving and expanding the Group’s portfolio of tier 1 and tier 2 sites alongside both incubating and developing new sites.

Stuart Simms, Group Chief Executive Officer commented: “There is no question that we currently face operational headwinds, but fundamentally, I firmly believe in the underlying quality and sustainability of our business.  However, I believe it is now time to accelerate a number of strategic measures that will create a short-term drag on revenue growth, but will ultimately strengthen our business by creating a much stronger and more transparent platform from which to grow.

“By proactively consolidating – and where necessary culling – our considerable tail of legacy websites and focusing a greater proportion of our efforts on monetising both tier 1 and tier 2 websites in addition to incubating new sites, we will significantly improve the medium-term prospects of the Group. 

“I feel it’s important to reiterate that we continue to operate a global portfolio of content rich websites that deliver significant value for our users. This expertise remains a core competence for our business which I fully intend to capitalise on as management seeks to both enhance and expand our business over the coming years.”