Jersey-headquartered performance marketing company XLMedia is planning to sell the majority of its casino assets facing the Finnish market.
The sale, which will be handled by Akur Capital, forms part of the company’s reformation plans to hone their focus on high-potential markets.
All money generated from these sales, should they go ahead, will be reinvested in supporting future acquisitions. The development of engaging websites will also be a priority.
XLMedia had announced a three-part strategy in February as a response to drops in some websites’ Google search rankings.
“Providing additional capital”
Following Google’s algorithm update during the winter, which affected a number of XLMedia websites, the company said that this was likely to impact revenue.
As such, they decided to shift where they focus their time and energy.
When speaking about the offloading of its Finnish-facing casino sites, XLMedia CEO Stuart Simms had the following to say.
“XLMedia has set out a clear transformation strategy to deliver the next phase of growth. We have already made significant progress with reshaping the organisation, reducing our cost base, strengthening the leadership team and building our core people skills and technological expertise.
“The sale of our Finnish-facing casino assets will reduce the reliance on unregulated markets and accelerate the delivery of our strategy, providing additional capital for the acquisition of attractive assets in regulated and high growth markets, such as the burgeoning US sports market.
“I look forward to updating our key stakeholders over the coming months.”
Looking at the bigger picture
For 2019, XLMedia reported a 14.8% year-on-year decline in revenue – reaching $79.4 million. This, combined with an impairment loss of $81.4 million, led to an overall net loss.
As a result of “streamlining” its services, the company expects to save over $5 million annually.
XLMedia is looking at existing segments for revenue, such as gambling and personal finance. Alongside this, the company also aims to cast its net further and into other verticals.