XLMedia Plc · OTC:XLMDF
XLMedia — FY2015 Earnings Presentation
21 slides from XLMedia's earnings presentation, March 2016
Slide 1: Monetising Online and Mobile Traffic
Monetising Online and Mobile Traffic March 2016 1 |
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “PRESENTATION ”) WHICH HAS BEEN PREPARED BY XLMEDIA PLC. (THE “COMPANY) IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES, AND NEITHER THE PRESENTATION NOR ANYTHING CONTAINED HEREIN NOR THE FA
Slide 3: The presentation team
The presentation team Chris Bell, Non-executive Chairman • Former CEO of Ladbrokes between 2001 and 2010 • Has over 20 years’ experience in the gambling sector • Currently non-executive at Quintain Estates and Development plc and Spirit plc and a member of the Responsible Gambling Strategy board Ory
Slide 4: Overview
Overview Online performance marketing company • We attract paying users from multiple online & mobile channels and direct them to online businesses • Performance based business model with over 50% recurring revenues underpinning strong cash flow • Customers include: Bet365, 888.com, Ladbrokes, Willi
Slide 5: Operational Highlights
Operational Highlights Positive impact of acquisitions continues to accelerate profit growth and strategic progress • Strong performance from Marmar Media acquisition, adding skills and client base in additional verticals, namely software and ecommerce • First phase integration of EDM now completed,
Slide 6: Our business model
Our business model Publishing Diversified client base (34% SALES*) XLMedia’s Informational portals Provide web / network mobile users Media (51% SALES*) Technology based, ROI Driven, Continuously Optimised, Social gaming Performance based Partner Network payment (15% SALES*) Lifetime Revenue, volume
Slide 7: Publishing
Publishing • XLMedia owns a network of informational websites • The informational websites refer potential customers to web and mobile online businesses • Our optimisation expertise includes: Publishing revenues 2015: $30.3 M 2014: $23.9 M Ongoing Optimization Owns more than 2,000 websites in 18 lan
Slide 8: Media
Media • XLMedia acts as an advertiser running thousands of simultaneous self- Media revenues funded campaigns, in different verticals 2015: $45.8 M • Our customers pay only based on performance 2014: $15.4 M • XL deploys proprietary technology to manage media campaigns • Leveraging in-house optimisa
Slide 9: Media: Constant optimization for improved ROI
Media Constant optimization for improved ROI Big Data Optimising Proprietary data enabling XLM to gather data optimise campaigns Using proprietary tools for analysis and iterative testing optimising Country / Brand / Creative / Deal / Offer / Device / demographics Conversion XLM self-funded Bid on a
Slide 10: Digital advertising
Digital advertising Digital Media consists of posting different forms of advertising in the online and mobile space Advertisers Publishers Networks Spend on advertising Run online Match supply business/content and marketing and demand websites Demand for Bid/Ask platforms Supply of ad space (exchang
Slide 11: Partner Network
Partner Network • Currently manages over 300 independent affiliate partners who drive traffic through XLMedia • All traffic generated by affiliates to gambling operators triggers revenue to XLMedia Partner Network revenues • Affiliates benefit from XLMedia’s ongoing close support, scaled operations
Slide 12: Financial Highlights 2015
Financial Highlights 2015 Revenues increased 76% to $89.2 million (2014: $50.7 million) Gross profit increased 49% to $41.1 million (2014: $27.6 million) Adjusted EBITDA increased 67% to $28.4 million (2014: $17.0 million) Profit before tax increased 84% to $24.3 million (2014: $13.2 million) Net ca
Slide 13: Strong Financial Track Record
Strong Financial Track Record $89.20 Adjusted EBITDA ($ m) Revenues ($ m) * IFRS $50.7 $34.5 $28.40 $26.1 $20.9 $17.0 $12.5 $13.3 $11.2 $8.8 $6.3 $2.2 $4.0 $0.5 $0.7 2008 2009 2010 2011 2012 2013 2014 2015 Employees: 9 Employees: 24 Employees: 40 Employees: 40 Employees: 97 Employees: 120 Employees:
Slide 14: The future of online marketing
The future of online marketing Online gambling market • Online gambling market currently worth $40bn*1 and expected to grow average 9% per year through to 2018 Mobile and tablet growth • Mobile advertising is expected to grow by an average of 38% a year between 2014 and 2017 • Mobile adspend project
Slide 15: Growth Opportunities
Growth Opportunities Publishing Media • Continue to grow publishing market share in • Enhancing technology to the media business (such as current territories and newer territories such as real time bidding, optimisation, analysis) to further UK, Canada, Austria, Germany, Switzerland, drive media eff
Slide 16: Summary & Outlook
Summary & Outlook 2015: record breaking year • Significant increase in organic revenues and client base • Access to new markets and verticals through successful acquisitions • EDM integration accelerated into the Group • Acquisition of a majority stake in Marmar Media • Strong trading reflecting the
Slide 17: Any Questions?
? Any Questions? 17 | 17 May 2018 |
Slide 18: Appendix
Appendix 18 | 17 May 2018 |
Slide 19: Income statement
Income statement Ongoing region diversification ** Item (Thousands $) FY 2015 FY 2014 2015 Audited Audited 23% Revenues 89,219 50,720 33% Cost of revenues 48,143 23,142 3% Gross Profit 41,076 27,578 19% Operating Expenses 18,116 12,979 22% Operating Profit 22,960 14,599 Total adjusted EBITDA* 28,442
Slide 20: Cash Flow statement
Cash Flow statement $ '000 FY 2015 FY 2014 Operating Activities Net Income 20,200 11,910 Depreciation & Amortisation 3,775 1,296 Cost of share based payments 839 1,042 Changes in Working Capital, tax and finance expenses 3,486 2,959 Finance income from financial derivatives 99 (264) Cash Flow from O
Slide 21: Balance Sheet 31 December 2015
Balance Sheet 31 December 2015 $ '000 Current assets: Current liabilities: Cash, cash equivalents and short term Trade payables 11,146 42,607 Contingent consideration payable 5,373 investments Trade receivables 16,088 Other liabilities and accounts payable 12,151 Other accounts receivable 2,042 Tota