XLMedia (XLM) can do no wrong. That is, if you excuse its morally ambiguous business model, which sees it attract customers to gambling websites via a portfolio of click-bait-style websites. But from an investor’s perspective, the online media specialist is a storming success. The shares rose another 14 per cent on the news that adjusted cash profits in the year to December 2017 will be “materially ahead of expectations”.
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To a certain extent, it’s external expansion that has driven the performance. The Canadian financial services website Greedyrates has enjoyed a particularly successful run since it was acquired in January. Organic growth is driven by the publishing division, where strong demand has helped expand margins.
