XLMedia (XLM) risked irking investors in January when it launched a strategic review within days of upgrading its earnings forecasts. But they may forgive the digital marketer following these excellent results. Strong demand for web traffic, combined with technology upgrades and acquisitions, propelled adjusted operating profits up 57 per cent to about $23m (£16m) in 2015.
XLMedia uses digital advertising, marketing partners and more than 2,000 informational websites to funnel internet users to clients, typically in return for a cut of the money they make. Brisk trading and technology investments drove publishing sales up 26 per cent. Moreover, revenues from the Aim-listed group's partner network more than doubled to over $13m as management recruited more allies. But the media division, its largest, was the real star: organic sales leapt 28 per cent, while the takeovers of Marmar Media and EDM strengthened its US presence and expertise in software, e-commerce and both social and mobile gaming.
Prior to these results, broker Cenkos expected pre-tax profits of $30.2m in 2016, giving EPS of 11.3¢.
| XLMEDIA (XLM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 73p | MARKET VALUE: | £145m | |
| TOUCH: | 71-74p | 12-MONTH HIGH: | 85p | LOW: 52p |
| DIVIDEND YIELD: | 4.9% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 44¢* | NET CASH: | $42.6m† | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | 20.9 | 8.4 | na | na |
| 2012 | 26.1 | 13.5 | na | na |
| 2013 | 34.5 | 11.7 | 9.0 | 2.77 |
| 2014 | 50.7 | 13.2 | 6.0 | 3.16 |
| 2015 | 89.2 | 24.3 | 10.0 | 5.09 |
| % change | +76 | +83 | +67 | +61 |
Ex-div: 28 Jan Payment: 26 Feb *Includes intangible assets of $55.0m, or 27¢ a share †Includes short-term investments of $6.9m £1=$1.44 | ||||
