XLMedia lauds diversification strategy as 2016 revenues soar
Group revenues increase 16% year-on-year but gambling sector now only accounts for 70% of total
XLMedia has reported a 16% rise in 2016 revenues and strong profit growth after a year in which the performance marketing company continued its diversification away from gambling.
Group revenues increased from US$89.2m to $103.6m for the 12 months ended 31 December 2016, while adjusted EBITDA was also up 22% year-on-year to $34.6m.
The online gambling sector continued to account for the bulk of the company’s full-year revenues at 70% but this was down from 74% in 2015 and a big drop from 83% in 2014.
XLMedia has since completed a number of acquisitions to further its diversification into new verticals and markets, including a $5.1m deal in February for mobile performance marketing platform ClicksMob.
In January, the AIM-listed marketing firm also acquired Canada-facing credit card comparison site Greedyrates.ca for $9.3m.
“We are proud to have delivered another record breaking year in which we have made further progress in executing on our strategic priorities and generated significant value for our shareholders,” XLMedia CEO, Ory Weihs, said.
“Our strong financial performance coupled with our ability to maintain a market leading position is supported by our commitment to invest in proprietary products whilst integrating complementary acquisitions.”
According to today’s full-year results, XLMedia’s publishing business was the company’s fastest-growing segments with 2016 revenues increasing 52% to $46.1m.
Media revenues grew 4% year-on-year to $47.6m, while the company’s partner network reported a decrease in revenues from $13.1m in 2015 to $9.9m last year.