Trading update

RNS Number : 4482C

XLMedia PLC

19 January 2015

 



For immediate release

19 January 2015

XLMedia PLC

("XLMedia" or "the Group" or "the Company")

Trading update

Year-end trading performance exceeds market expectations

XLMedia (AIM: XLM), a leading provider of digital performance marketing services, announces the following trading update for the year ended 31 December 2014.

The Board is pleased to confirm that the Group has continued to deliver a strong trading performance in 2014. Trading for the year has benefitted from both organic growth and the positive impact from the recent acquisitions.  As a result, the Company expects to exceed current market expectations with annual revenue for FY2014 of at least US$49.5  million and adjusted EBITDA of at least US$16.6 million.  This strong performance represents growth of approximately 43% and 24% respectively compared to FY 2013.

2014 has been a year of significant strategic progress for the Group in which a number of initiatives were successfully implemented. We significantly increased our presence in regulated markets including the U.S and the U.K through acquisitions, added marketing activities for additional products such as social gaming and financial services, extended our customer base and further diversified our marketing channels. 

Current revenue run rates include approximately 50% of revenues from our media channels, including EDM, the acquisition completed in September 2014. We continue to see strong customer demand in that segment and expect it to remain strong during the current year.

We are pleased to report that the recent acquisitions have performed in-line or ahead of management expectations. Whilst we continue to enjoy strong organic growth within the established Scandinavian markets, these acquisitions have accelerated our growth within regulated territories and into new verticals such as social gaming, further diversifying our customer base in the process. For example, the U.S. is now our second largest market and represents approximately 21% of total Group current revenue run rate. We expect this trend to continue in 2015 with our ongoing efforts to further diversify and capitalise on the high demand for digital advertising services worldwide.

In 2014, the Company made significant investments in talent, management systems and infrastructure with headcount increasing by over 50%, creating the platform to support the next phase of our growth. Therefore, the Board believes that the outlook for 2015 remains positive with growth set to continue.

The Company will announce its full year results for the year ended 31 December 2014 in March 2015.

Ory Weihs, Chief Executive Officer of XLMedia, commented:

"We are delighted with the strong financial performance of the Group, highlighting the significant strategic progress we have made over the past year.  Since our IPO in March 2014 we have worked hard to execute our growth plans. I am happy to see the results of the efforts of our very talented team which delivered our planned growth, whilst also diversifying our business and building strong foundations for the future.

"We continue to make excellent progress across our strategic priorities and I look forward to updating the market at our full year results in March."

For further information, contact:

 

XLMedia plc Ory Weihs www.xlmedia.com	Tel: [phone]
Vigo Communications Jeremy Garcia / Fiona Henson www.vigocomms.com	Tel: [phone]
Cenkos Securities plc Ivonne Cantu / Callum Davidson	Tel: [phone]

 

END

 

 

TSTVQLFFEFFBBBD