Affiliate marketing publisher XLMedia has outlined plans to bolster its global expansion strategy as confirmed in a business trading update for the remainder of 2019 and the full year to 31 December 2020.
Outlined in the trading update was a number of strategic initiatives that XLMedia looks to pursue following a two month internal review initiated by newly appointed CEO Stuart Simms.
The trading update detailed: “This ongoing review has assessed the core operational base of the business, including both scale and commercial responsiveness, with the resulting conclusion that the Group will require increasing expenditure in 2020 in order to support sustainable growth in the medium term.
“These new initiatives are aimed at strengthening the Group’s core business, mitigating ongoing regulatory headwinds and better positioning the Group for growth.”
Stuart Simms, Chief Executive Officer of XLMedia, commented: “Having now spent a couple of months immersed in the business, I am excited to be leading it towards the next phase of growth. Whilst there are some clear near-term headwinds and operating issues (similar in many other companies of our size and stage of development), our core expertise, assets and market presence remain incredibly strong.
“We have already identified and are investing in market opportunities which will generate sustainable growth in the future. I look forward to the coming months to continue to evolve our strategy, progress with the transformation program and execution of our strategic plan.”
In the trading update for the year ended 31 December 2019, “the Board expects the Group to deliver consolidated revenues of c.$78 million and adjusted EBITDA1 to be c.$32 million for the year ending 31 December 2019” which XLMedia states was ‘ broadly consistent with previous guidance.’
For the upcoming year, the affiliate marketing publisher outlined its expectation that regulatory headwinds could continue to create trading uncertainty, ‘and the review has been central in addressing the future diversification of the Group’s revenue base’ across regulated markets.
The update continued: “As a global business, XLMedia will seek to further deploy its online real estate and market knowledge to expand its geographical footprint in areas such as North and Latin America and APAC, and to broaden its growth potential.
“To facilitate this expansion, management will increase its spend beyond historical budgets, in both new and existing online properties, to invest organically in the business alongside actively seeking acquisitions.
“This new initiative is designed to increase exposure and traffic in new territories in addition to improving engagement in existing territories through improved functionality, rich content and design. Ultimately, the Group aims to both extend its geographic reach and expand into new verticals, which complement the Group’s existing focus on gaming, gambling, personal finance and sports betting.”