XLMedia shifting focus to higher-margin publishing

Digital performance marketing services provider XLMedia told shareholders on Wednesday that it was continuing to trade in line with management expectations, with a firm focus on increasing its exposure to higher margin publishing activities.

The AIM-traded firm, which was holding its annual general meeting, noted that in the last 10 years it had both created and acquired a “leading portfolio” of assets in its publishing division.

Non-executive chairman Chris Bell said it was now focusing its efforts to “fully leverage” that core expertise, to build a more comprehensive footprint across regulated gambling markets, in addition to its growing presence in the financial services vertical in North America.

“XLMedia continues to be a highly cash generative business with a strong cash balance,” Bell told investors.

“Therefore, the board continues to evaluate the group's allocation of capital policy in order to both support our growth ambitions and to maximise shareholder value.

“As a consequence of the current weakness in the company's share price and pending approval at today's AGM granting the company authority to buy shares, we intend to continue the share buyback programme that was initiated in December.”

Bell also reiterated the board’s commitment to maintaining a progressive dividend policy.

“We also continue to evaluate selective publishing acquisition opportunities, which could potentially accelerate earnings growth.

“We appreciate the ongoing support of our shareholders and remain focused on delivering on our full year numbers for 2019.”