Xlmedia Share Discussion Threads

[eezymunny] 11/9/2017 09:08

Seems to that XLM is one where EPS numbers are largely irrelevant as there's (seemingly) always a fair bit of capex, so the discussion here is missing the point.

The cash flow is where to look IMO. If you take adj EBITDA ($22.9m) and deduct the main capex item "Acquisition of and additions to domains, websites, technologies and other intangible assets" ($4.8m), you get a better picture ($18.1m). Tax that at 25% and convert to UK£ and you get c. £10.4m cash flow. Annualise that, add a bit of H2 growth and you might get perhaps £21.5m for the year . Market cap c £275m here at 135p . Knock off say £30m for excess cash at year end for an EV of £245m.

So EV/cashflow perhaps 11-12. Not bad although I don't have much idea what they do, or how sustainable the profits :)

Rough numbers. DYOR!

[woodcutter] 11/9/2017 08:51

maffs the reason the admin costs are significantly higher that the comparable year is due to the D&A charge which, if you look in the cash flow statement is more than double last year so you need to make allowance for that.

woody

[return_of_the_apeman] 11/9/2017 08:41

Webcast at 9:30 today

[rivaldo] 11/9/2017 08:36

Maffs1, I've no idea. I've emailed Ory before about showing the adjusted EPS, but it doesn't seem to have filtered through.

The other frustrating thing is that they always issue rounded EPS figures, unlike other companies, which masks the true performance as I said before.

Oh well. I suppose it gives those who dig a little deeper a buying opportunity :o))

[return_of_the_apeman] 11/9/2017 08:25

Continuation of the chart uptrend, £1.50 due in short order

[maffs1] 11/9/2017 08:24

Thanks rivaldo, Any idea why they don't give us an adjusted eps figure in the results?

[rivaldo] 11/9/2017 08:19

Firstly, the EPS shown is the headline EPS, NOT the adjusted EPS which all the analysts use. We wait to see what the true, core EPS performance is.

Secondly, the headline EPS increase is masked by roundings. Headline EPS for H1 has increased very nicely to 5.7p, from 5.0p last year, a 14% increase.

[adamb1978] 11/9/2017 08:16

Ahem, my quick xls work put minorities going in the wrong way, so perhaps EPS of 11p this year, and a PE of 12x.

[adamb1978] 11/9/2017 08:08

maffs1 - agree with you. Looks like clean opex was up 46% so they left it out of the highlights. Still, market expectations at EPS level are way behind reality now

[malcolmmm] 11/9/2017 08:08

Cant buy any on line but can sell at 133p at the moment, great results

[maffs1] 11/9/2017 08:07

Earnings are not up over 30%. EPS has gone from 6 cents to 7 cents which is 17%.

[adamb1978] 11/9/2017 08:04

Well that was unexpected! After 3 consecutive half years of flat turnover, 33% annual growth this half came of the blue, even despite the acquisitions! The 5% dividend increase was pretty stingy though; maybe they're retaining the cash for another acquisition as a 5% increase when earnings are up over 30% is tight.

Track record of delivery from XLM is superb, though unfortunately the multiple which the market places it on is always going to be held back because of the Israeli angles; if they de-Israeli-fied a bit and moved to London the share price would be double what it is today. Still, my spreadsheet has EBITDA up 10x since 2010 and I reckon they'll do 12p or so EPS this year so only on a PE of 11x.

Kind of wish I hadn't trimmed back my position earlier this year, however because of the overseas nature, I didn't and still don't see a meaningful re-rating to what it would be on with that. In the meantime though, share price should still tick up with earnings, and these guys can have shown that they can deliver 20%-30% consistently and that's not a bad return!

[maffs1] 11/9/2017 08:01

I hold these in spades, so some genuine questions...anyone know why eps isn't mentioned until further down the results (its usually a highlight) and why it has only increased from 6 cents to 7 cents (16%). I'm also a wee bit concerned that profit before tax growth is a lot less than revenue growth. There has been a big increase in admin costs. Is this under control?

[mount teide] 11/9/2017 07:57

Excellent results and future guidance - considering the the number of acquisitions made and ongoing product development during the period, the cash generation has been extremely strong to end H1 with $43m in cash/short term investments on the balance sheet.

[return_of_the_apeman] 11/9/2017 07:56

Someone is bound to ask the divi question, so here is the answer

dividend of $8 million or 4.0226 cents per share payable on 13 October 2017 to shareholders on the register at 22 September 2017. The ex-dividend date is 21 September 2017.

[return_of_the_apeman] 11/9/2017 07:54

Mmc71,

Makes a great entry point for new investors though

[igoe104] 11/9/2017 07:53

Growth should be higher H2, as acquisitions get more bedded in.

[blueeyes13] 11/9/2017 07:51

Well good to see this half has seen good growth and mainly organic given the 3 previous 6 month periods with static revenue value. EPS growth 12% but would expect to see this increase in 2nd half all being well.

[mmc71] 11/9/2017 07:44

Unbelievable - looks like its going to open at 130/133. What more does the company need to do to achieve a higher rating?

[cheshire man] 11/9/2017 07:43

Whats not to like folks :-)

[busterdog2] 11/9/2017 07:41

Can't fault them, they always come up with future growth a strong outlook and a good dividend.

[rock star] 11/9/2017 07:35

Yep. Usual good results and quality of earnings going up. Price historically drops in first few hours of trading and then rises once the short term traders have exited. They say they should comfortably meet year end expectations so we usually get the upgrade in Dec or early Jan.

[igoe104] 11/9/2017 07:23

ok,

here my song.

[gargleblaster] 11/9/2017 07:22

Would agree that figs look good, but also future guidance. Rev growth in publishing and media both up 40%!

"The Board is therefore confident of comfortably meeting profit expectations for the full year"

[rivaldo] 11/9/2017 07:20

Very, very good results today. As usual. Including a 3.1p interim dividend!

Plus $43m of cash on the Balance Sheet.
Plus further diversification away from gambling into financial services and cyber-security.

XLM really need to be re-rated significantly from here.

The outlook is terrific:

""We are delighted to report another record period of strong profit growth for the Group. The combination of both organic and acquisitive growth has accelerated our progress extending our business into new verticals and new geographic regions.

"Current trading remains strong and we are confident that the ongoing implementation of our strategic focus will continue to yield excellent results, underpinning the board's ongoing confidence in the Company's near and medium term prospects."

Igoe :o))