XLMedia shares climb as expansion beyond gambling vertical pays off

Alys Key
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Chief executive Ory Weihs (Source: XLMedia)

Digital performance marketing firm XLMedia broke through another record this morning, reporting its highest half-year revenue ever.

Shares in the firm, which owns multiple websites in different sectors, were trading up more than seven per cent today.

The figures

XLMedia's revenue grew to $67.9m (£51.4m), marking an increase of 33 per cent across the board. The publishing division was especially strong, with a 32 per cent increase during the period.

Underlying earnings were up 30 per cent to $22.9m, while pre-tax profit jumped 23 per cent to $19.5m.

The company released an interim dividend of just over four cents per share.

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Why it's interesting

The group, which owns more than 2,000 websites, has been on a buying spree this year, expanding its presence in several markets and sectors.

New acquisitions have helped the firm diversify beyond its original role as a gambling gateway, which acquired users for online casinos and bookies.

Recent additions to the portfolio include a US financial services website called Moneyunder30 and Canadian comparison site Greedyrates.

This means the proportion of revenue accounted for by the gambling vertical, reducing the group's exposure to regulatory headwinds currently looming over the industry.

Analysts at Cenkos said the strong growth in the media arm was "demonstrative of management’s ability to continue to derive increasing returns from the underlying intangible asset base".

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What XLMedia said

Chief executive Ory Weihs said: “We are delighted to report another record period of strong profit growth for the Group. The combination of both organic and acquisitive growth has accelerated our progress extending our business into new verticals and new geographic regions."

“Current trading remains strong and we are confident that the ongoing implementation of our strategic focus will continue to yield excellent results, underpinning the board’s ongoing confidence in the Company’s near and medium term prospects.”

Read more: XLMedia snaps up another site in bid for US expansion

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