Affiliate marketing group XLMedia expects to report EBITDA ‘in line with current market expectations’ for the year ended 31 December 2018.
Providing a trading update, the digital marketing services provider confirmed that ‘trading in the second half of 2018 continued to strengthen with the Group proactively focusing on higher margin business’.
As a result of this overall margin improvement, the firm expects to reach its EBITDA expectations ‘against lower revenue base of approximately $118 million’.
XLMedia assured shareholders that it has ‘a material cash balance’ and continues to generate ‘strong cash flows from operations’. It also stressed its focus on growing the ‘higher margin publishing division within its key strategic verticals: Gaming (including the newly re‐regulated US Gambling market), and Personal Finance’.
XL will provide a more detailed update to the market as part of the full-year results announcement, which will be published in March. The firm revealed its interim results for the first half of 2018 back in September, detailing that despite a tough climate for 2018, the firm remained on course to achieve its targets.
Ory Weihs, Chief Executive Officer of XLMedia, commented: “The Group produced a solid profit performance in the first half, albeit against a backdrop of regulatory pressures and challenging market conditions in the online gambling sector. However, we are now seeing positive signals and expect to meet profit expectations for the full year.
“Since the beginning of this year we have been focusing on implementing our strategy and executing acquisitions in order to accelerate growth, allocating over $45 million of capital for acquisitions. Our newly acquired assets perform as expected and we are confident they will deliver a strong return.”
Read our in-depth interview with Weihs here.
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