XLMedia warns of extra-small revenue
XLMedia
11.79p
13:50 16/05/24
Digital marketing outfit XLMedia expects revenues to drop as much as $30m in its current trading year following its strategic shift away from media operations.
FTSE AIM 100
3,836.79
13:50 16/05/24
FTSE AIM All-Share
793.02
13:50 16/05/24
Media
12,329.14
13:50 16/05/24
XLMedia will materially reduce certain parts of its media activities which have lower profit margins and unstable revenues, resulting in a one-off impairment of $11-13m for the year ended 31 December.
The AIM-listed group warned investors that this move, together with increased investment into its publishing business, would largely account for an expected reduction in adjusted EBITDA of between $6m and $7m.
However, in the medium-term, XL expects the changes to result in higher profit margins and a better quality of earnings.
XL said: "2019 has started in line with management's expectations but the group continues to recover from the operational and regulatory headwinds reported in 2018.
"The performance of the affected publishing assets continues to recover, albeit slowly, and the integration of recently acquired assets remains ongoing."
As of 0850 GMT, XL shares had tumbled 31.28% to 53.60p.