XLMedia’s (XLM) difficult year rounded off with adjusted cash profits of $43.9m (£33.2m), down $3.2m on last year but above the expected $6m-$7m dent announced in a February trading update. A $19.7m drop in revenues also beat management's expectations set out last month.
The digital marketing services specialist saw its media segment’s adjusted profits fall 23 per cent to $15.3m. As previously announced, XLMedia is reducing its media activity in favour of its higher-margin publishing work. This rowback resulted in a write-off of the segment’s intangible assets, totalling $9.9m.
XLMedia’s publishing division overcame regulatory uncertainty in US gambling to generate marginal profit growth. The group is pinning its growth ambitions on publishing on its gambling and personal finance work, particularly in North America. It made several acquisitions in publishing in 2018, costing $47.3m in total.
Berenberg analysts forecast full-year 2019 adjusted profits of $33m and EPS of 12.5¢, down from $35m and 13¢ last year.
| XLMEDIA (XLM) | ||||
| ORD PRICE: | 59p | MARKET VALUE: | £166m | |
| TOUCH: | 58-60p | 12-MONTH HIGH: | 191p | LOW: 28p |
| DIVIDEND YIELD: | 11.9% | PE RATIO: | 5 | |
| NET ASSET VALUE: | 78.3¢* | NET CASH: | $31.8m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014 | 50.7 | 13.2 | 6 | 3.16 |
| 2015 | 89.2 | 24.3 | 10 | 5.09 |
| 2016 | 104 | 31.0 | 12 | 7.61 |
| 2017 | 138 | 39.3 | 15 | 7.73 |
| 2018 | 118 | 25.2 | 9 | 7.02 |
| % change | -14 | -36 | -40 | -9 |
| Ex-div: | 4 Apr | |||
| Payment: | 3 May | |||
| £1=$1.32 *Includes intangible assets of $33m, or 15¢ a share | ||||
