XLMedia Plc · OTC:XLMDF
XLMedia — FY2019 Earnings Presentation
22 slides from XLMedia's earnings presentation, April 2020
Slide 1: Full Year Results 2019
Full Year Results 2019 Investor Presentation Stuart Simms, CEO lain Balchin, CFO K April 2020 XLMedia PLC
Slide 2: Presentation Team
Presentation Team Stuart Simms Group CEO Stuart joinedXLMediaas Chief Executive Officer in October 2019. Stuart brings significant experience in technology companies and specifically those in the performance marketing sector. He has previously held several board and senior executive positions, inclu
Slide 3: Our Business
Our Business XLMedia has along track record of success in performance digital marketing We stimulate active engagement by sending paying consumers to our customers (brands / operators / financial institutions) Currently manage an extensive portfolio of online websites across 4 main verticals 50% of
Slide 4: XLMedia in Numbers
XLMedia $79.7M $538.7M $33.5M in Numbers $(58.7)M $299M 300+ 65+ ~360 23+
Slide 5: Full-Year Overview
Full-Year Overview
Slide 6: Key Highlights
Key Highlights New executive management team with significant and successful transformation experience Strategy to evolve the Group operating model and reposition the Company alongside new growth markets and territories now underway Renewed focus on premium sites and an acceleration of a planned cha
Slide 7: c105 sites manually demoted by Google in January
c105 sites manually demoted by Google in January, significantly reducing their ability to generate revenues Impacted sites range from 23 ‘premium’ revenue generating sites to low grade, typically legacy sites within the online casino vertical A large number of low-grade sites had a collective negati
Slide 8: COVID-19 Update
COVID-19 Upd XLMedia’s global workforce has been working remotely since March 2020, in line with current regulations globally COVID-19 is having a negative impact on a number of our key business verticals and revenue streams This decrease should be marginally offset by increased demand in other vert
Slide 9: Current Trading
Current Trading The Company made a solid start to 2020 before the Google deranking and COVID-19 pandemic creating uncertainty in the short to medium-term Q2 2020 looks likely to be a very challenging period, one during which significant change is being delivered against a background of increasing on
Slide 10: Financial Results
Financial Results
Slide 11: Income statement 2019 vs 2018
Item US$‘000 2019 2018 Revenues 79,695 93,502 Revenue – Reduction YoY due to regulatory headwinds in Sweden, Germany and Switzerland Cost of revenues 26,002 30,133 plus move away from non core Media activities Gross profit 53,693 63,369 Operating expenses 27,347 26,384 Operating expenses remain stab
Slide 12: North American growth gaining momentum
North American growth gaining momentum North America, 20% Other CPI, 0% Europe, 14% Gambling, 84% Revshare, 71% Scandinavia, 43% CPA, 29% Personal United Kingdom, 13% Finance, 16% Oceania, 2% Other Territories, 8% Other, 0% Users’ Geography Products Business Model 12
Slide 13: Transformation Strategy
Transformation Strategy
Slide 14: Positive shift from Quantity to Quality of our websites
Positive shift in emphasis from ‘Quantity to the Quality’ of our websites Evolving our core business, working practices and group structure to leverage new growth markets and territories Focused on connecting brands to consumers by operating a diverse global portfolio of premium websites, delivering
Slide 15: Consolidation of publishing assets
Consolidation of publishing assets Ongoing initiative to consolidate XLMedia’s c. 2000 online publishing assets Actively removing basic or legacy sites which offer little customer engagement and financial returns for the Group Clear focus on building strong brand recognition across a focused number
Slide 16: US sports betting market represents a significant opportunity
US sports betting market represents Operate an established / solid revenue a significant opportunity foothold within personal finance o Focused on building US presence to develop o Currently pursuing further growth opportunities organic investment opportunities, partnerships, o Deploying local resou
Slide 17: Target Regulated & Mature Markets
Target Regulated& Mature Markets Ongoing investment program in regulated markets = Solid regulatory framework in order to generate stable revenue growth * Ongoing investment in regulated markets (e.g. UK, US) Company seeking to leverage a strong regulatory framework — capitalising on sustainable rev
Slide 18: New management team focused on executing transformational plan
New management team focused on executing on a wide ranging transformational plan aimed at cultivating deep consumer engagement Rapid consolidation of the Group's online real estate prioritising ‘Quality over Quantity’ Focus on regulated markets provides the Group with a solid framework from which to
Slide 19: Thank You
Thank You Da XLMedia PLC
Slide 20: Cash flow statement
US$‘000 2019 2018 2019 2018 Operating Activities Financing Activities Net income (loss) (58,701) 20,775 Dividend paid to equity holders of the Company (14,190) (14,362) Depreciation and amortisation 7,511 6,203 Share capital issuance - 42,618 Impairment loss 81,350 300 Cost of (income from) share-ba
Slide 21: Balance sheet
31.12.19 31.12.18 Current liabilities Trade payables 3,028 6,416 Other liabilities and accounts payable 21,578 16,107 Current maturity of long-term bank loan 1,465 5,585 US$‘000 31.12.19 31.12.18 Lease liability 1,161 - Current assets: Total current liabilities 27,232 28,108 Cash and short term inve
Slide 22: Disclaimer
THIS PRESENTATION (THE “PRESENTATION ”) WHICH This document is exempt from the general restriction on completeness of such information and to do so could HAS BEEN PREPARED BY XLMEDIA PLC. (THE the communication of invitations or inducements to enter potentially expose you to a significant risk of lo