XLMedia Plc · OTC:XLMDF
XLMedia — FY2017 Earnings Presentation
29 slides from XLMedia's earnings presentation, March 2018
Slide 1: Technology-Driven Performance Marketing
TECHNOLOGY-DRIVEN PERFORMANCE MARKETING March 2018
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
OVERVIEW o A leading online performance marketing company o Attracting paying users from multiple online & mobile channels and direct them to online businesses in return for performance based payment models o Strong track record of profitable growth and cash generation o Successful diversification s
Slide 4: Our Business Model
OUR BUSINESS MODEL Attracting potential users through our publishing assets and directing to our customers Publishing 46% Media 48% Online users: Web, mobile, Complimentary social, … Partners Networking Approaching Performance potential users through based payment posting ads on different Lifetime R
Slide 5: 2017 Business Progress
2017 Business progress 5
Slide 6: 2017 Highlights
2017 HIGHLIGHTS Strategic progress o Entered the personal finance sector via two strategic acquisitions o Acquired ClicksMob, a mobile performance-based user acquisition platform, providing expertise in user acquisition for mobile apps and games o Completed the acquisition of Securethoughts, a US cy
Slide 7: Personal Finance Expansion
PERSONAL FINANCE EXPANSION o Personal finance sector is a strategic growth engine o Acquired Greedyrates, a leading Canadian credit card comparison website and Moneyunder30.com, a US financial services website o Further growth opportunities include expanding into additional personal finance products
Slide 8: Market Dynamics: Regulation
MARKET DYNAMICS: REGULATION o Enhanced regulation in 2017 across the online gambling industry in regions such as in Australia, Germany, UK (ad restrictions) as well as new regulation in others (US, Portugal) o The personal finance sector has clear instructions for ads and promotion in the different
Slide 9: The Future of Online Marketing
THE FUTURE OF ONLINE MARKETING Growth of Internet advertising revenues o Worldwide digital ad spending will reach $223.74 billion in 2017, representing 38.3% of total paid media outlays. This format is expected to see double-digit growth through at least 2020 o Global advertising expenditure in soci
Slide 10: Financial Results
Financial Results 10
Slide 11: Strong Financial Track Record
STRONG FINANCIAL TRACK RECORD Adjusted EBITDA ($ m) Revenues ($ m) $160.0 $137.6 $140.0 $120.0 $103.6 $100.0 $89.2 $80.0 $60.0 $50.7 $40.0 $34.5 $47.1 $26.1 $20.9 $34.6 $20.0 $11.2 $28.5 $4.0 $8.8 $12.5 $13.3 $17.0 $0.0 2010 2011 2012 2013 2014 2015 2016 2017 Dividends since IPO ($ m) 8.2 8.0 12.5 1
Slide 12: Income Statement
INCOME STATEMENT Item (Thousands $) FY 2017 FY 2016 change Revenues 137,632 103,605 33% Cost of revenues 64,487 50,282 28% Gross Profit 73,145 53,323 37% Operating Expenses 32,376 23,226 39% Operating Profit 40,769 30,097 35% Total adjusted EBITDA* 47,120 34,617 36% % Adj. EBITDA 34% 33% Finance inc
Slide 13: Segment Performance
SEGMENT PERFORMANCE PUBLISHING MEDIA PARTNER NETWORK Profit up 37% Profit up 39% Profit up 22% $14,000 $13,145 $70,000 $70,000 $66,428 $62,894 $12,000 $60,000 + 37% $60,000 + 39% $9,903 $10,000 $50,000 $46,057 $50,000 $45,777 $47,645 $8,310 $50,309 $8,000 $40,000 $38,384 $40,000 $6,123 $30,297 $6,00
Slide 14: Cash Flow Statement
CASH FLOW STATEMENT 2017 2016 2017 2016 Net income 31,871 25,584 Financing Activities Depreciation, amortisation and impairment 5,932 3,878 Dividend paid to equity holders of the Company (15,505) (12,362) Cost of share-based payment 419 646 Acquisition of non-controlling interests (2,250) - Changes
Slide 15: Balance Sheet 31 December 2017
BALANCE SHEET 31 DECEMBER 2017 $ '000 2017 2016 2017 2016 Current assets: Current liabilities: Cash and short term investments 43,277 35,186 Trade payables 9,813 9,274 Trade receivables 18,950 17,075 Current maturity of long-term bank loan 2,500 - Financial derivatives 1,425 - Other accounts receiva
Slide 16: Growth Strategy
Growth Strategy Our stated strategy is built on the following three pillars: o Diversification o Technology o M&A 16
Slide 17: Growth Strategy – Ongoing Diversification and Investments
GROWTH STRATEGY – ONGOING DIVERSIFICATION AND INVESTMENTS Continue to expand the Group’s operational reach into new geographies and verticals: o Drive organic growth across all segments through investments and economies of scale o Enter new verticals and geographies in organic and acquisitive activi
Slide 18: Revenue Diversification
REVENUE DIVERSIFICATION Revenues diversification – Revenues diversification – Revenues diversification – Revenues Per users’ geography products customers business model Scandinavia, North CPI, 24% 28% America, Mobile A, 8% Other 22% Gambling, 64% Applications, Customers B, 6% 19% (<5% Each), Other E
Slide 19: Growth Strategy - Technology
GROWTH STRATEGY - TECHNOLOGY Continue developing our technology infrastructure to accelerate our growth and profitability through efficiency and further enhance our competitive edge Rampix Business Intelligence Centralized Unified Data warehouse management of social to collect data from campaigns, u
Slide 20: Growth Strategy - M&A
GROWTH STRATEGY - M&A Execute acquisitions which both strengthen and expand the Group’s operational footprint Areas of focus o Publishing assets: continue to buy bolt on websites, integrate them into XLM’s existing infrastructure and technology, enjoying benefits of scale o Vertical expansion o Geog
Slide 21: Unrivalled Pedigree in Acquisitive Growth
UNRIVALLED PEDIGREE IN ACQUISITIVE GROWTH Acquisition of Acquisition of Majority acquisition of Acquisition of Acquisition of Acquisition of Acquisition of High potential domain UK-based sports Domains, websites and Finnish Network in North America betting affiliate site other related assets Also
Slide 22: Summary and Outlook
SUMMARY AND OUTLOOK 2017 Progress o Strong organic growth o Executing on strategic acquisitions o Continued development of in-house systems Foundations laid for future growth o Sustainable organic growth o Leading market position with strong foot in newly regulated markets o Personal finance sector
Slide 23: Any Questions?
Any Questions? 23
Slide 24: Publishing
PUBLISHING o XLMedia owns over 2,300 informational websites, mobile sites and apps engaging millions of users $70,000 in 18 languages $62,894 $60,000 o Our informational websites attract potential customers and refer them to online and mobile $50,309 $50,000 $46,057 customers $38,384 o Some assets r
Slide 25: Media
MEDIA $70,000 $66,428 o XLMedia acts as an advertiser running USD ‘000 $60,000 thousands of simultaneous self-funded $47,645 campaigns, in different verticals. Customers pay $50,000 $45,777 based on performance $40,000 o XL deploys proprietary technology to manage $30,000 $20,632 media campaigns acr
Slide 26: User's Journey
USER’S JOURNEY High ranking XLMedia property Users search for specific information User search results Users directed to client Revshare / CPA / … Users browse web/mobile/social/… XLMedia posts ads Users directed to client 26
Slide 27: 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 27
Slide 28: Partner Network
PARTNER NETWORK o Manage independent affiliate partners who drive traffic through XLMedia o XLMedia provides affiliates with support and one-stop-shop to service multiple operators o Affiliates access XLMedia’s proprietary system aggregating statistics and promotions from many operators o completed
Slide 29: Experienced Senior Leadership
EXPERIENCED SENIOR LEADERSHIP INBAL LAVI CEO (ISRAEL) LIAT HELLMAN CFO (ISRAEL) • 13 years' experience in the online marketing • Over 20 years’ experience in publicly industry traded companies • Diverse background and expertise in marketing • Serves as CFO (Israel) of the strategy, operations and P&