XLMedia Plc · OTC:XLMDF
XLMedia — H1 2017 Earnings Presentation
23 slides from XLMedia's earnings presentation, September 2017
Slide 1: Technology driven Performance Marketing
September 2017 Technology driven PERFORMANCE MARKETING
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION (THE “PRESENTATION ”) WHICH HAS BEEN PREPARED BY 4. you will not forward, reproduce or otherwise disclose the contents of this XLMEDIA PLC. (THE “COMPANY) IS FOR INFORMATION PURPOSES ONLY AND DOES document to any person in contravention of FSMA or any other applicable NO
Slide 3: Overview
Since IPO OVERVIEW $44.1 M • A leading online performance marketing company Dividends $96.5 M • We attract paying users from multiple online & mobile Investments in tech and acquisitions channels and direct them to online businesses in return for performance based business models • Strong track reco
Slide 4: Our Business Model
OUR BUSINESS MODEL Attracting potential users through our publishing assets and directing to our customers Publishing 44% Media 50% Online users: Web, mobile, social, … Complimentary Partners Networking Performance Approaching based payment potential users through Lifetime Revenue share posting ads
Slide 5: Publishing
PUBLISHING • XLMedia owns over 2,300 informational $50,000 $46,057 websites, mobile sites and apps engaging USD ‘000 $45,000 millions of users in 18 languages $40,000 $38,384 • Our informational websites attract potential $35,000 $30,298 $29,808 customers and refer them to online and $30,000 $23,965
Slide 6: Media
MEDIA $60,000 USD ‘000 • XLMedia acts as an advertiser running thousands of $50,000 $45,777 $47,645 simultaneous self-funded campaigns, in different verticals. Customers pay based on performance $40,000 $33,895 • XL deploys proprietary technology to manage $30,000 media campaigns across all ad units
Slide 7: User's Journey
USER’S JOURNEY Users search for specific information High ranking XLMedia property User search results Users directed to client Revshare / CPA / … Users browse web/mobile/social/… XLMedia posts ads Users directed to client 7
Slide 8: Optimization Cycle
OPTIMIZATION CYCLE Quality content Asset optimisation Place Brands Send users Big Data Gather data Target Proprietary tracking, data and analysis tools Send users XLM self-funded Bid on ads Place Brands campaigns 8
Slide 9: Partner Network
PARTNER NETWORK USD ‘000 • Manage independent affiliate partners who drive traffic $14,000 $13,145 through XLMedia $12,000 $9,903 • XLMedia provides affiliates with support and one-stop- $10,000 shop to service multiple operators $8,000 • Affiliates access XLMedia’s proprietary system aggregating $6
Slide 10: Our Technology
OUR TECHNOLOGY Palcon Tracking Solutions Rampix Pheonix Business Intelligence A consolidated Tracks the sales Centralized Management of Group Unified Data warehouse management funnel from different management of social entities and unique to collect data from system across all sources on Company cam
Slide 11: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD Adjusted EBITDA ($ m) Revenues ($ m) $120.0 $103.6 $100.0 $89.2 $80.0 $67.9 $60.0 $50.7 $40.0 $34.5 $26.1 $34.6 $20.9 $28.5 $20.0 $23.3 $11.2 $17.0 $4.0 $8.8 $12.5 $13.3 $0.0 2010 2011 2012 2013 2014 2015 2016 H1 2017 Dividends since IPO ($ m) 8.2 8.0 12.4 Employees: 40
Slide 12: Income Statement
INCOME STATEMENT Item (Thousands $) FY 2017 H1 FY 2016 Revenues 67,929 103,605 Cost of revenues 32,756 50,282 Gross Profit 35,173 53,323 Operating Expenses 16,028 23,226 Operating Profit 19,145 30,097 Total adjusted EBITDA* 23,293 34,617 % Adj. EBITDA 34% 33% Finance income (expenses), net 345 903 P
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT H1 2017 2016 H1 2017 2016 Net income 15,509 25,584 Financing Activities Depreciation and amortisation 3,353 3,878 Dividend paid to equity holders of the Company (7,504) (12,362) Cost of share-based payment 338 646 Dividend paid to non-controlling interests (881) (1,805) Changes i
Slide 14: Balance Sheet June 2017
BALANCE SHEET 30 June 2017 $ '000 Current assets: Current liabilities: Trade payables 12,346 Cash, cash equivalents and short term investments 43,062 Contingent consideration payable 503 Trade receivables 18,837 Financial derivatives 1,520 Other accounts receivable 3,021 Other liabilities and accoun
Slide 15: Revenue Diversification
REVENUE DIVERSIFICATION Revenues diversification – Revenues diversification – Revenues diversification – Revenues Per users’ geography products customers business model CPI, 20% Other Customers Rest of Europe North America, (<5% each), 29% Gambling, 63% 28% Gaming, 24% 75% A, 8% Revshare, 43% Other,
Slide 16: Financial Services Expansion
FINANCIAL SERVICES EXPANSION • Financial services sector is a strategic growth engine. • Acquired Greedyrates, a leading Canadian credit card comparison website and Moneyunder30.com, a US financial services website. • Both assets increase XLMedia’s North American presence and establishes a foothold
Slide 17: The Future of Online Marketing
THE FUTURE OF ONLINE MARKETING Growth of Internet advertising revenues • Worldwide digital ad spending will reach $223.74 billion in 2017 and represent 38.3% of total paid media outlays. The format is expected to see double-digit growth through at least 2020 • Global advertising expenditure in socia
Slide 18: Growth Strategy
GROWTH STRATEGY Continue to expand the Group’s operational reach into new geographies and verticals • Media: Leverage demand for online marketing services within US and Asia markets • Publishing: Continue to grow market share in current territories and newer ones Continue developing our technology i
Slide 19: Summary and Outlook
SUMMARY AND OUTLOOK 2017 progress • Strong organic growth • Executing on strategic acquisitions • Continued development of in-house systems • Awarded Instagram Marketing partner for technology Foundations laid for future growth • Strong sustainable organic growth in both publishing and media segment
Slide 20: Any Questions?
CLICK TO EDIT MASTER TITLE STYLE Any Questions? 17 May 2018 20
Slide 21: Appendix
“BRANLY SIS Zs APPENDIX
Slide 22: Experienced Senior Leadership
EXPERIENCED SENIOR LEADERSHIP INBAL LAVI CEO (ISRAEL) LIAT HELLMAN CFO (ISRAEL) • 12 years' experience in the online marketing • Over 19 years’ experience in publicly industry traded companies • Diverse background and expertise in marketing • Served as CFO (Israel) of the strategy, operations and P&
Slide 23: Digital Advertising
DIGITAL ADVERTISING Digital Media consists of posting different forms of advertising in the online and mobile space Advertisers Publisher Spend on advertising Networks Run online and marketing Match supply and demand business/content websites Demand for Bid/Ask Supply of ad ad space ad-tech platform