Xlmedia Share Discussion Threads

[luisfrg] 23/9/2019 07:42

Profits miss

[nw99] 23/9/2019 07:15

Board now expects the Group to deliver revenues of circa US $80 million and adjusted EBITDA to be circa US $34 million, for the year ending 31 December 2019.Not what we were hoping for !

[km85] 22/9/2019 18:09

Worth sharing it again.

the below notes from the recent update explained it all. Background to and reasons for the Tender Offer On 26 February 2019, the Company announced its intention to reduce activity in non-core, low margin media activities, with a view to focusing on the higher margin publishing activity, leading to an expected $30 million reduction in revenues in 2019. The reduction alongside investment in development of new publishing assets have led to an adjusted EBITDA reduction of between $6-7 million for 2019. This decision was made proactively by the Board with a view to delivering higher profit margins and better quality of earnings for Shareholders. Despite some recent share price momentum, the Directors believe that the full potential of the Company, as highlighted in the 'Information on the Company' section above, is not reflected in the price of 72.75 pence per Share (as at close of business on 15 July 2019), and that the Shares continue to trade at a significant discount to quoted peers. The Company has been built on the success of its publishing assets and the Directors firmly believe in the growth potential for the business by focusing on such assets in both the gambling and personal finance verticals going forward. In light of these considerations, the Board has concluded that, in the interests of both effective capital management and utilising the Company's strong net cash position alongside ongoing working capital expenditure and the Company's future investment plans, a tender offer offers the most efficient use of the Company's excess cash at this point in time. A tender offer is therefore being proposed to Shareholders on the Company's Register on the Record Date (being close of business on 14 August 2019). The Board intends to continue its commitment to maintaining a dividend policy of paying out at least 50 per cent. of net profit and will continue to evaluate selective publishing acquisition opportunities, which the Board considers could accelerate earnings growth. Information on the Company XLMedia is a performance marketing company operating a large portfolio of informational and content rich websites globally. Its websites act as a conduit to channel users to its clients, the majority of which address two key products - gambling and personal finance. The Group also uses in-house media buying capabilities which it deploys to support its core publishing division. The Group's publishing activities comprise of numerous informational websites and mobile sites which attract millions of users across numerous countries in their local language. These sites attract paying users and direct them to online businesses in return for performance-based payments, which are predominantly based on revenue share and cost per acquisition. The Company is currently focused on further building its publishing business within the established gambling sector, as well as growing its presence in the personal finance space, where the Directors believe that there exists a significant market opportunity in North America. In order to establish its footprint, XLMedia has undertaken a number of acquisitions in this space, most notably greedyrates.ca and moneyunder30.com, and the Directors remain focused on broadening the Group's exposure to this growing sector. In addition, the Company is closely monitoring the US gambling market, which continues to benefit from the potential introduction of legislation and regulation across various States. XLMedia is now actively investing in building and developing a more comprehensive portfolio of publishing assets to support its entry into this market alongside investigating potential strategic acquisitions. As previously announced, in order to capitalise on this potential market opportunity, the Company has committed to spend $7 million over the next three years on targeting the US gambling market in particular. The Company is therefore focused on the following key growth initiatives: · A strengthened focus on publishing activities as a core profit driver with an emphasis on gambling and personal finance; · Further expanding the Company's footprint in the nascent US gambling sector, which offers significant growth potential; and · Ongoing investment in technology whilst continuing to evaluate selective earnings accretive acquisitions.
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[kholden2019] 21/9/2019 06:40

That 7,999 trade at 16:28 is mine. It's showing as a sell, but I did actually buy them. I agree, they don't always get reported correctly, so all the large sells at the end of the day could indeed be purchases like mine.I am pretty confident the mid year results will be positive on Wednesday and that faith in this share will start to return after last years mid year report. IMOBut, even if the share price doesn't budge much we all still get a very tasty dividend for the value of our share.

[km85] 20/9/2019 18:13

Why I am really positive about the future of XLM and other is not just the fact of more states start regulating the online gambling and sport betting, which indeed benefit affiliates, operators, Medias,and softwares platforms, But the awareness of the industry especially in the US. Below two link of two big events happening in New York in November where sport betting operators CEOs and CFOs, suppliers, affiliates and they will meet with investors, big banks, senators, Private equity investors, regulators, and others.

hxxps://www.sportsbettingusaconference.com/

hxxps://www.sportsbettingusaconference.com/who-attends

[scubadiverr] 20/9/2019 18:11

A lot of trades of late. Showing as sells which could be concerning but presuming they are actually buys judging by the share price Has anyone any ideas as to what's going on behind the scenes?

[km85] 20/9/2019 17:54

The restriction on ads will help publishing affiliates like XLm and others. As those affiliates have mainly organic traffic coming from search to their sites. The restriction ads will affect operators so they will rely more on affiliates and in return affiliates will ask for bigger commission. Operators will save big marketing budgets so I think they will have no other choice but only pay the affiliates. What will hurt affiliates and operators is the restriction or ban of regulations.

[hatfullofsky] 20/9/2019 17:30

Am I missing the link to XLM

[hatfullofsky] 20/9/2019 17:28

The only thing holding us back is the restrictions on advertising

[hatfullofsky] 20/9/2019 17:26

Hope so, small top up today

[onjohn] 20/9/2019 15:54

take off coming

[malcolmmm] 20/9/2019 15:06

Pleased that they did buy back my shares at 80p as they seemed to allocate a very good proportion of the buybacks to the the smaller investors. Bought back in a few weeks ago.

[nw99] 20/9/2019 14:18

Very good value thank you

[km85] 20/9/2019 13:05

xlm Is not just so cheap but it is a quality business too. Very fat margin, high return on capital, low capital requirements, cash cow business, and of course it has a huge potential for profitable growth . The US market will be bigger than the whole EU markets not just Nordic market. The company will start significantly benefit from that market from 2020 and forward. Regarding the coming results, the fact is the company announced twice that the results are in line with their management expectation. Again they said it twice and also recently they mentioned that the company has the cash to buyback the 15m pounds worth of shares, which already it, and to pay the dividends and to support the working capital needed. I do not think they needed to buy back shares if the results were not good. The two announcements Mentioned in the general shareholders meeting and in the recent buy back offer and Recent announcement dated after the 30 of June 19.

[montynj] 20/9/2019 12:39

Likewise I've bought back in too. As a quote in Sharewatch said "The US markets are far bigger than the markets in Scandinavia so it's not fanciful that Publishing sales could really take off a year from now. With net cash & equivalents currently c.US$47m and a tidal wave of free cash flow (pre-capex and investment in intangible assets), Weihs says he could also make acquisitions of Media assets. If current cash balances were directed to M&A it could easily add 20% to present forecasts. And even without that, the shares already look dirt cheap on eps of 12.4 cents (9.8p) for the year to end December and 13.1 cents next year (10.4p). Strip the cash away and the PE is 4.6 dropping to 4.4. The company is also paying 50% of its earnings as a dividend implying a c.8% yield."Basically, the shares are ridiculously cheap..The benefits of legalisation of sports betting in USA is likely to come quicker than 2022 with Weihls saying he is ready to launch. Check out GAN..

[nw99] 20/9/2019 12:12

Bought back in hope the results will be good next week

[km85] 20/9/2019 11:29

Gaming Innovation Group has expanded its partnership with Hard Rock International to include the launch of sports betting in Iowa.

GIG has supplied online gaming technology to Hard Rock in New Jersey since July 2018, and rolled out its full onmi-channel sports betting solution with the operator in New Jersey earlier this year.

The two companies will now work together to launch sports betting in the state of Iowa, initially on the casino floor at the Hard Rock Hotel & Casino in Sioux City, followed by the rollout of online and mobile sports betting in the final quarter of this year.

GIG said that the expanded agreement will enable it to leverage its platform in the US, adding more scale to its network and revenue to the business.

“After a successful launch in New Jersey, I am delighted to further deepen the relationship with Hard Rock, delivering on our strategy to grow with our partner by entering a new state in the US with our sportsbook,” said Richard Brown, acting chief executive of Gaming Innovation Group.

“The agreement is both a testament to our know-how and prowess to lead a land-based casino into the digital world of betting, and a strong validation of GiG's commercial and product delivery capabilities. We are looking forward to growing with our partner long term. We have mutual ambitions to entertain consumers with a safe and exciting first-class sports betting experience.”

Iowa legalised sports betting earlier this year, allowing the state’s 19 casinos to offer retail and online sports betting to players over the age of 21, with online accounts subject to in-person registration until January 1st, 2021.

Thirteen sportsbooks were operational in Iowa in August, generating total handle of $8.58m in the first month with net receipts of $2.16m. Online wagering accounted for $3.67m of handle in August and $424,129 of net receipts.

“We're excited to extend our partnership with GiG to support sports betting in Iowa, and further grow our sportsbook portfolio,” said Kresimir Spajic, SVP of online gaming at Hard Rock International.

[km85] 18/9/2019 15:36

Pennsylvania sees betting and online casino soar
17 September 2019
Pennsylvania saw more than $100m (€90.8m/£;80.5m) spent on both interactive gaming and sports betting during the first full month of operations.

A total of $111.8m was spent on interactive gaming in August, with $62.0m going on interactive slots and $49.7m on table games, according to figures from the Pennsylvania Gaming Control Board.

The total wagered with the three operational online casinos was more than double the $49.2m in July, when online gaming was only available for the final 16 days of the month. Operators collected gross revenue of $3.43m in August.

Sports betting also passed $100m during the course of its first full month thanks to huge growth in online. More than three quarters of the $109.0m betting handle - $83.2m - was generated by the four online sports books. Total sports betting revenue, including retail, was at $9.9m.

[km85] 17/9/2019 17:31

No worries stun180, I think they both will indeed benefit from this high rich market. Due to the business model of GAN it reaches the market faster than any online affiliate, as platform and software technology, operators requires their system, platform, odds system and many other tools to run their business, and especially store operators whose already have clients data and they are shifting their retails clients and operation into online business. Important to mention gan software is already launched and easy to integrate, takes few weeks to fully compete integration, whereas affiliate launch new markets require sometimes to get ranking and then send traffic.

[stun180] 17/9/2019 17:07

Thanks Km85 , what with the gan results it would be nice to know how xlm are placed in the us sports betting market.thanks

[km85] 17/9/2019 15:01

Stun180. As far as I know the company mentioned some US acquisitions of sport betting and gambling websites back in 2013-2015 annual reports. Xlm also reported during that time that It got a licence approved in New Jersey. I assume those websites already sending some traffic. But I think both Catena and Better collective are more active on the US sport betting and online gambling than Xlm due to their recent big acquisitions in this market. Whereas XLM relying more on building sites internally. So I think from 2020 Xlm will start making serious business from this market.

[stun180] 17/9/2019 14:31

Km85. Do we know if xlm are pulling in any revenue yet from the us sports betting market.

[km85] 16/9/2019 09:22

The actual market cap of xlm is 138m after the recent buyback. However here at ADVFN platform it shows 156m. They have not yet updated the number of shares and the market cap.

[malcolmmm] 16/9/2019 09:15

Happens a lot especially during the first hour when the spread is wide and the share price could be volitile . I wonder if its possible for the stock exchange to enquire of brokers as to the nature of a transaction ie whether it is actually a buy or a sell rather than rely on software

[mrnumpty] 16/9/2019 09:07

The transaction at 8.02 am today for 10,000 shares @ 73.5p is incorrectly shown as a " sale " . It was in fact a " buy " . I should know - I was the purchaser . Yes , I know that these misallocations of " buy " and " sell " to transactions occur all the time , so I suppose we just have to live with it . However , this is just another example of how unreliable these " buys " and " sells " are , to the point where they are useless but also deceptive to the uninformed or novice investor .