Online gaming marketing services provider XLMedia has reported strong sales momentum in core European markets as year-on-year revenue and gross profit jumped during the six months through to June 30, 2014.
The firm posted revenue of $19.9 million (€15.4 million) in the first of 2014, which is up 24% on the $16 million achieved in the corresponding period last year.
Gross profit also grew by 10% from $10.3 million in the first half of 2013 to $11.3 million.
Although adjusted earnings before interest, tax, depreciation and amortisation dropped from $7.2 million in 2013 to $6.4 million, XLMedia said that this reflected investment in line with strategy to generate future growth.
At the end of the first half, XLMedia boasted a cash balance of $56.6 million, which is significantly higher than $4.2 million at the same point last year.
Ory Weihs, chief executive officer of XLMedia, said: “We are delighted to report the Group has made an excellent start to 2014, reflecting strong sales momentum in our core European markets.
“The demand for our services remains high with gaming operators continuing to seek out our services in order to maintain significant levels of high quality traffic to their sites. We have also made good progress with our acquisition strategy, a key growth initiative articulated at the time of our IPO earlier this year.
“The acquisition of ExciteAd Digital Marketing (EDM), our largest to date, on 1 September 2014, takes the group into the fast growing social gaming arena, which we believe will be a significant growth engine for XLMedia in the coming years.”
In addition to the EDM deal, XLMedia also this week acquired an additional 21% in the joint venture that operates its Finnish websites for a cash consideration of $1.5 million.
The acquisition will increase XLMedia’s holding in the joint venture from 72% to 93%.
source : www.igamingbusiness.com
