XLMedia, a Jersey-based marketing company that also deals with online gambling, has reduced its revenue forecasts following regulatory changes in Australia and Europe.
The company had expected revenue for the year end December 31, 2018, US$130m, with a marginally lower adjusted EBITDA compared to the previous year and with a corresponding impact on profit before tax. But the company is unlikely to meet that target.
“Underlying trading in the year to date has been stable with the Group actively deciding to focus on higher margin business and ceasing certain lower margin media buying activities,” the company stated in an update.
“The Group has also seen some impact from regulatory changes, namely the closure of the Australian market at the end of 2017 in addition to uncertainty regarding the regulatory status of certain European markets during 2018.”
“These regulatory changes have triggered a re-alignment in how operators and marketers can work which should lead to a clearer and more functional environment. There has also been some reduction in SEO performance in few specific territories.”
XLMedia’s board also reported that recently acquired personal finance assets have continued to perform well, with the expectation for total publishing revenues in this sector to continue to grow during 2018.
The firm is also keen to involve itself in the opened-up US market.
“With the US Supreme Court repealing the ban on sports betting last month, we have accelerated our efforts to ensure we are well positioned to service those operators who will be active in the market, although we believe its positive effects will only be felt in the medium to long term,” XLMedia stated.
Source: InterGameOnline
