Digital marketing device provider XLMedia has attributed its 10 per cent year-on-year drop in revenue to a tough regulatory landscape, as confirmed in its H1 report for the six months ending June 30, 2019.

The first half of revenue amounted to a total of $42.5m (£34.2m/€38.7m), marking a drop from the $47.2m reported in the same period last year. XLMedia has explained that new regulations in Sweden, Switzerland and the UK have had a significant impact on this total.

XLMedia’s chief executive Ory Weihs said: “This year has proven to be challenging for both XLMedia and the industry as a whole, as the gaming industry changes and regulates.

“However, this does result in the Group having greater visibility, more sustainable revenues and stable earnings.

“Whilst we expect this disruption to continue in the midterm, we remain committed to our stated strategy, focusing on publishing.

“We continue to diversify our asset base, specifically developing our US gambling strategy and the personal finance sector, in which we continue to make good progress with this sector now accounting for 14% of the group’s revenues.”

Gross profit was down from $31.7m to $28.8m in the first half of this, coupled with lower revenue along with higher expenses, meaning that profit before tax fell by 22 per cent year-on-year from $17.6m to $13.8m.

Due to an increase in general administration costs, which have related to changes in management along with higher amortisation of capitalised R&D costs, XLMedia reported that expenses had grown by six per cent from $13.6m to $14.5m.

Next month, Weihs will step down as CEO at XLMedia, where Stuart Simms of Rakuten Marketing will come in to replace him.

“As my last address as CEO of XLMedia, I would like to wish Stuart every success and firmly believe that with the support of the board and management team he will lead the business back to sustainable growth,” Weihs added.