XLMedia (XLM)

Sector:

Media

Index:

FTSE AIM All-Share

 12.50p
   
  • Change Today:
      0.000p
  • 52 Week High: 14.75
  • 52 Week Low: 6.24
  • Currency: UK Pounds
  • Shares Issued: 259.90m
  • Volume: 1,142,587
  • Market Cap: £32.49m

XLMedia slumps after dividend is scrapped

By Sean Farrell

Date: Tuesday 04 Feb 2020

LONDON (ShareCast) - (Sharecast News) - XLMedia shares slumped after the online marketing group scrapped its dividend and warned that Google's demotion of more than 100 casino sites would cost up to $2.0m (£1.5m) a month.
On 20 January, XLMedia said Google had demoted a number of its casino websites and that this would impede their ability to attract new visitors and generate revenue.

In a further update, the AIM-traded company said 107 sites were affected by Google's action. More than 84 of the sites were of low commercial value but the remaining demoted sites were "premium". It said the low-value sites might have affected the rankings of the other sites but it could not be sure the problem would be resolved.

Lost income from the premium sites would reduce group revenue by between $1.0m and $2.0m a month and a lengthy period of demotion could push them down Google's rankings for a period of time if they are restored. Removing the low-value sites would reduce revenue by between $3m and $5m this year, the company said.

These actions are likely to cause a revaluation of the company's assets and incur an impairment charge, XLMedia said. The company also said that to speed up strategic initiatives and acquisition opportunities it would not pay a dividend for the 2019 financial year and that no dividend was expected to be proposed until further notice.

XLMedia shares fell 27% to 24.55p at 10:28 GMT. The shares have almost halved in value since before the 20 January statement when they were priced at 47p.

Chief Executive Stuart Simms said: "There is no question that we currently face operational headwinds, but fundamentally, I firmly believe in the underlying quality and sustainability of our business. However, I believe it is now time to accelerate a number of strategic measures that will create a short-term drag on revenue growth, but will ultimately strengthen our business by creating a much stronger and more transparent platform from which to grow."

The company also announced the appointment of a chief financial officer and chief transformation officer. Iain Balchin, a turnaround specialist, has joined as CFO with immediate effect from payments optimisation business Ixaris. He takes over from Liat Hellman, who has been interim CFO since Yehuda Dahan stepped down after a profit warning in September.

Transformation chief Sarah Clark has joined from Loot Crate where she was general manager for Europe, Middle East and Africa. Balchin's job will be below board level at first and Clark will not join the board.

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XLMedia Market Data

Currency UK Pounds
Share Price 12.50p
Change Today 0.000p
% Change 0.00 %
52 Week High 14.75
52 Week Low 6.24
Volume 1,142,587
Shares Issued 259.90m
Market Cap £32.49m

XLMedia Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
59.39% above the market average59.39% above the market average59.39% above the market average59.39% above the market average59.39% above the market average
54.55% above the sector average54.55% above the sector average54.55% above the sector average54.55% above the sector average54.55% above the sector average
Price Trend
5.94% below the market average5.94% below the market average5.94% below the market average5.94% below the market average5.94% below the market average
19.15% above the sector average19.15% above the sector average19.15% above the sector average19.15% above the sector average19.15% above the sector average
Income Not Available
Growth
55.21% above the market average55.21% above the market average55.21% above the market average55.21% above the market average55.21% above the market average
45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average45.45% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

XLMedia Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 04-Apr-19
Paid 01-Nov-19 03-May-19
Amount 3.16¢ 4.02¢

Trades for 28-Mar-2024

Time Volume / Share Price
16:39 50,000 @ 12.50p
16:39 50,000 @ 12.50p
16:35 30,000 @ 12.50p
16:35 30,000 @ 12.50p
16:05 4,627 @ 12.28p

XLMedia Key Personnel

CEO David King

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