Xlmedia Share Discussion Threads

[acamas] 16/1/2018 18:16

Speculate to Accumulate? Doubt they want it for day to day costs more likely to grow the company. bwdik

[glyn10] 16/1/2018 18:11

dissapointed that it is only open to Institutional Investors........

[adamb1978] 16/1/2018 17:40

Thats quite a big slug of cash, even setting aside the acquisition announced yesterday. Presume they must have something imminent otherwise why raise now?

[nimbo1] 16/1/2018 17:35

In the short term I find all raisings annoying but if it propels growth can bear it, but will be an rns in the am confirming price and it’s done. At least it’s not very dilutive at that amount. Hopefully other earnings enhancing acquisitions are at an advanced stage.

[fozzie] 16/1/2018 17:20

At 185 i would assume most lth would buy more, rude not too ;o)

[hatfullofsky] 16/1/2018 17:18

WTF - TAP yesterday, XLM today what is it with Israeli companies and January fund raises ?

Although we may get away with 200p I think 185 is more likely

[superadams] 16/1/2018 17:11

Not if they buy something on a lower PE.

[waterloo01] 16/1/2018 16:49

TAP and XLM in lock step although this one slightly different in no insiders selling as part of raising.

[deltrotter] 16/1/2018 16:49

Will be done and dusted by tomorrow morning, just like Taptica yesterday/this morning.

Berenbergs must be making a tidy sum.

[glaws2] 16/1/2018 16:42

P Lacing of 16m shares via bookbuild - to fund acquisitions

[rivaldo] 16/1/2018 15:40

I assume XLM will get broker forecast increases/upgrades after the new acquisition completes in the next month or so.

Meanwhile here's an article giving some more detail about the acquisition not in the RNS - "big things planned, so watch this space":



Extract:

"Following the acquisition, Good Game Limited will focus on building out its recently launched Bojoko.com brand; its most comprehensive and innovative online casino affiliate site to date.

Bojoko is unique in that operators have the power to generate their own content. Operators will enjoy full control over how branding is represented and players are kept updated on all the latest news and promotions.

It is a concept that has proven extremely popular in other online industries such as hotel and accommodation listings with the overwhelming success of companies such as Airbnb and TripAdvisor.

In today’s regulatory landscape, Bojoko also provides operators with a unique platform to update players on any changes to their Terms and Conditions, ensuring a fully transparent dialogue between the operator and its customers.

Toni Halonen, CEO of Good Game Limited, said: “We are delighted to have reached a deal with XLMedia to acquire some of our most successful online casino affiliate sites, and for them to take each site to the next level.

“Following the acquisition, we are going to focus our efforts on bojoko.com, and making it the most valuable and powerful online casino comparison site in the world. We have big things planned, so watch this space.”

[mount teide] 16/1/2018 08:55

L2 - opened much stronger than yesterday's close

Closed at 1 v 1 / 206p v 207p(with MM's on 208p, 209p and 210p)

Opened at 2 v 2 / 206p v 2010

Now 2 v 1 / 206p v 2010p(with MM's on 211, 212, 213, 215 and 216p)

[superadams] 15/1/2018 16:53

So the new acquisition made revenues of e1.66m last year with e500k estimated in the transition quarter so full years rev should be in excess of e2 million so decent earnings growth here even before any synergy savings.

[tomstone12] 15/1/2018 16:40

I think with this acquisition (which I think with the earn out growth will end up much cheaper then "we think") , the organic growth momentum every year and more acquisitions to come we have a long way to go share price here.
Happy 2018 to all XLM holders :)

[mount teide] 15/1/2018 16:35

US investors/market far better understand how to value fast growing technology companies - even the London market doesn't really understand them and so prices most of them accordingly.

[adamb1978] 15/1/2018 16:30

I dont think TAP nor XLM would meet the listing requirements for Nasdaq. Best bet would be to move the company to the UK - stay on AIM but move their head office here and become tax domiciled etc here. Appoint a London based, non-Israeli CFO and head of Investor Relations etc, as well as some other support functions (head of legal etc). Fine to leave the operational centre in Israel though.

Rightly or wrongly, Israeli companies trade at a discount but the upside to the share price from losing that discount is massive (100% upside?). The figures which these guys have consistently produced are superb but the market hasnt rewarded them in anything like the same way as a UK company which delivered the same results - unfortunately its not rationale to believe that the market will suddenly change its view.

That said, the investment case still holds without them moving to the UK...but that move would be a huge huge kicker to investor returns

[morph7] 15/1/2018 16:15

From the MF earlier today"Over the past year, shares in XLM Media (LSE: XLM) have powered ahead as the company has smashed expectations. Indeed, at the end of November, in a post-first-half trading update, the marketing services firm announced to investors that adjusted earnings before interest, tax, depreciation and amortisation for the full year will be "materially ahead" of current expectations following a few strong months. Organic growth has been complemented with acquisitions, and today the firm announced yet another deal as part of its long-term growth plan. Specifically, the company has acquired some leading Finnish gambling-related informational websites from Good Game Ltd for a total cash consideration of up to €15m. These sites reportedly "provide visitors with useful information such as reviews of online casino websites, comparison of promotions offered by different brands and information on payment solutions." And it seems to have paid a fair price of around nine times EBITDA. XLM itself is trading at a multiple of over 10 times EBITDA. Management expects the deal to be immediately earnings enhancing. From strength to strength This deal should lead to yet more earnings upgrades for it. Over the past few months, City analysts have consistently upgraded their outlooks for the company as it has gone from strength to strength. Right now, analysts are expecting the firm to report earnings of 11.3p per share for 2017, up from just 10p at the beginning of the year. If XLM hits this projection, then the group will have grown pre-tax profit threefold in five years. And analysts believe that this can continue with growth of 10% or more per annum pencilled in for the next three years. Based on XLM's historical performance, I believe these figures will turn out to be conservative, and shareholders could be in for a much faster expansion in the years ahead. With this being the case, I believe that the group's valuation of 17.8 times forward earnings seems appropriate. There's also a yield of 3% on offer for investors. "

[superadams] 15/1/2018 15:18

The upside of this is that we have all been able to top up our holdings on decent PEs and div yields.

[oneillshaun] 15/1/2018 14:43

Have a look at the current valuation of Catena it is a perfect example, if we had listed in Sweden we would be around 700m GBP.

[mount teide] 15/1/2018 14:22

one - exactly, Taptica has exactly the same problem with Aim and Israel

I posted on the TAP thread recently a comparison of market valuations between TAP and Tremor Video the US listed company TAP bought the demand site platform assets off last Autumn - spells out clearly the issues and why I expect TAP to look for a US/Nasdaq listing now something like 85% of their revenue is generated in the US:


'When Tremor Video IPO'd in 2013 the business raised $70m and had a market cap of $494m

After selling it's loss making ($(1.3)m a year on $137m revenue) demand side platform to TAP for $50m late last year and renaming itself Teleria, the pure play sell side business reported third quarter results in mid December - Revenue and adj EBITDA were ahead of guidance:

Revenue - $12.7m against guidance of $12.0-12.5m - Guidance FY17 $44m
Adj EBITDA - $0.5m against guidance of $(0.5m)-0m - Guidance FY17 $(6.6)m LOSS


Taptica currently has forecast revenue for 2018 of circa $330m and EBITDA of $38m.

TAP's current AIM market cap is $392m, while Teleria has a market cap of $225m

What valuation could fast growing, highly profitable and cash generative TAP command with a US listing now the overwhelming majority of its revenue is generated in the US? A $billion valuation (£12 a share) would not look stretched compared to the likes of Teleria and most of the US tech industry.'

[oneillshaun] 15/1/2018 14:07

superadams - i dont think that has anything to do with the business i think it is more to do with AIM and Israel.

[mount teide] 15/1/2018 13:08

L2 strengthened considerably after a surge of continuous heavy buying totally 330k shares hit the offer during the last hour

[superadams] 15/1/2018 13:08

oneill, don't get me wrong, am not unhappy with this deal but XLM does have a rating issue because of its gambling exposure doesn't it ?

[oneillshaun] 15/1/2018 11:08

superadams - hardly a negative, XL is looking to buy quality assets that make money, if you hate money stay away from gaming.

In gaming right now there are a lot of solid affiliates that are worth around the 3 to 10m euro level a lot of these guys are being picked up by Catena and Raktech and Gaming innovation group but XL is just very cautious i for one am really happy about this deal.