Shares in XLMedia (XLM) slid 9 per cent after the digital marketer's first-half operating profit slumped by a third to $4.6m (£2.8m). Moreover, its operating costs leapt by almost two-thirds due to hefty platform investments and its expansion into new media channels such as social and mobile.
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However, XLMedia's sales rose by nearly a quarter amid growing interest in online gambling and the spread of mobile devices. The group also acquired social media and mobile advertiser EDM, which should broaden its customer base and bolster its foothold in the burgeoning US market.
Broker Cenkos expects full-year pre-tax profit of $14.5m, giving EPS of 4¢, rising to $18.9m and 5.4¢ in 2015.
